Researcher and funds data provider Lipper Fizrovia says UK multi-manager funds come with total expense ratios (TERs) ranging from below 1.5% to more than 3%.
TERs for fund of funds (fof) investing in externally managed funds average 2.44%, while those for manager of managers and fofs investing in internal ranges average 1.86%.
Fitzrovia says its figures are based on inclusion both of fees and expenses, as well as weighted annual operating costs of each underlying fund/share class.
The research covers 187 funds/share classes investing in more than 3,100 underlying funds, accounting for some £14.8bn in assets under management.
By comparison, the research suggests industry average TERs of 1.63% for actively managed equity funds. Bond funds have TERs of 1.16%, although these figures will be higher for funds domiciled in Luxembourg or other offshore jurisdictions.
Analysing the funds included in the research shows almost one in three, 27%, are less than 95% invested, with the remainder principally as a cash balance.
|asset type||’inclusive’ TER||Average # underlying funds|
|multi-manager type||’inclusive TER||Average # underlying funds|
|External fof (unfettered)||2.44%||17|
|mom or internal fof (fettered)||1.86%||13|
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till