Regular reviews into the audit fees paid by unit trusts and Oeics have been called for followin...
Regular reviews into the audit fees paid by unit trusts and Oeics have been called for following research into the matter.
Audit fees of between £1,387 and up to £10,559 on average are being forked out, per fund, by fund management companies' open-ended funds. Some of these are overly high says research company Fitzrovia International.
Paul Moulton, chief executive of Fitzrovia International, said, "Surely it is important - for both fund companies and investors - that audit costs, which impact on fund performance, are regularly reviewed."
Across 84 fund management companies with at least 5 open-ended funds in the UK, Marlborough Fund Managers has the lowest mean average audit fee (£1,387), ahead of SocGen (£2,381) and Clerical Medical (£3,000). At the other end of the scale, Cazenove Fund Management has a mean average audit fee of £10,559, ahead of Bank of Ireland (£10,407) and F&C (Foreign & Colonial, £9,200).
Across all funds examined, the mean average annual audit fee is £5,636, with nearly 50% of funds ranging from £5,000 to £7,499. While 5% of funds show an annual audit fee of under £2,500, a further 5% have annual audit fees of at least £10,000.
The report examined 1,773 funds that had published their annual accounts and were received by Fitzrovia as at September 2001.
UK Fund Charges and Audit Fees is available from Fitzrovia International, priced £1,998.
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