A breakdown of total expense ratios (TER) reveals that UCITS fund managers retain on average 42% of fees and charges, while most of the remaining 58% is paid to distributors and on administration charges.
The report, commissioned by the European Fund and Asset Management Association (EFAMA), also reveals that investment management fees in Europe are on average only about 3 basis points greater than management fees in the US across all asset classes, if you exclude the top three mega managers. This is despite economies of scale enjoyed by US funds. However, unlike the US, European players operate against a backdrop of 27 languages and varying local regulatory and tax regimes, further increasing their costs. The report points out that as the European fund industry expands and matures, ope...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes