Small differences in fund manager charges can have a huge impact on investment returns, which is why the debate on fund charges versus fund performance is set to continue
Choosing a collective investment fund for a client can be a daunting prospect. There are currently around 3,000 onshore and offshore unit trusts, open-ended investment companies (Oeics) and investment trusts available. Consumer press and media stories abound with accusations that high charges always produce poor performance. Some clients are so wrapped up in this 'charges versus performance' issue that they are becoming increasingly difficult to advise. The term 'cost drag' has become the in-vogue phrase for many potential collective fund investors, and it is easy to see why. On the bac...
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