Investor anger at fund managers passing on the cost of trading may be overdone given the actual level of the costs, a consultancy has said.
Fitz Partners analysed more than 800 UK-based funds in its ‘portfolio turnover and trading fees’ analysis and claimed that while there was a “significant” impact from trading fees, the level of this was often overstated.
Hugues Gillibert, chief executive at Fitz Partners, said: “On average, they are still well under the level of management fees and nothing like doubling the total fund expenses or ongoing charges, as has sometimes been predicted.
“Hopefully our work will bring some substance to the current discussions taking place in the UK and in Europe as to what the impact of MiFID II might be in terms of fund fee disclosures, and in particular whether fund transaction fees should be made available to investors alongside other fees.”
The data comes at a pertinent time given a scathing attack on the industry by the Financial Services Consumer Panel, which argued for a “radical” single investment charge figure to deal with what it deems the “opacity” of current charges.