Fitzrovia renews calls for transparency in funds charging

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Research published today by Fitzrovia shows that OEICs are more expensive to invest in than Unit Trusts, when all expenses above and beyond annual management charges are taken into account.

The weighted average total expense ratio, TER, of OEICs is 1.54% compared to 1.45%, taking into account the fact the average OEIC is valued at about £95m versus £125m for UTs, according to Fitzrovia’s figures. Asset managers have been selling an increasing number of OEICs, or changing existing UTs into OEICs in order to take advantage of rules that enable them to be sold across EU borders. Ed Moisson, associate director communications, says the TERs represent “the bottom line” as far as costs go and the firm is yet to be convinced by any arguments against using this method of represen...

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