The ETF fee war shows no sign of abating. On the contrary, fee cuts have become part and parcel of life in ETF-land. Europe still lags behind the US when it comes to aggressive price-cutting. On this side of the Atlantic, we have yet to see zero-fee funds, let alone funds that actually pay investors, albeit temporarily, for the honour of holding them. Still, it’s clear that the only direction for ETF fees in Europe is south.
JPMorgan American investment trust has announced that it will not charge a management fee for nine months and will no longer charge a performance fee.
The subject of investment platform costs and charges featured prominently when the Financial Conduct Authority (FCA), the City regulator, published the outcome of its year-long study of the platform market in July. The FCA found that charges and the range of available investments on offer were the most important factors for DIY investors when comparing platforms, while lower charges were identified as the main motivation for investors switching platforms.
When a leading platform overhauled its pricing and services last summer, grumbling was heard across the market, while some investors threatened to take their business elsewhere. Exactly how many people followed up on that threat is unknown, but there’s little doubt that some were prompted to consider their options.
Fidelity has introduced a performance-based fee model for some of its funds. Tom Bailey runs through all the details.
Ballie Gifford is one of a small number of fund management firms that makes a point of passing on economies of scale.
Friendly societies are paying IFAs up to 40 per cent commission to refer their clients.
Investors are being stung with eye-watering charges of up to £1,000 in some cases simply for choosing to move their portfolio to another platform, a new online tool reveals.
A potential mis-selling scandal where financial advisers recommend the cheapest, rather than the most suitable, investment fund to their client so they can add large advice fees on top has been highlighted by a wealth manager.
Banks are hitting holidaymakers with an ‘extortionate’ charge of almost 5 per cent for withdrawing money abroad by using a confusing double-fee policy on debit cards.