Clean funds 'more expensive' in two-thirds of cases

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Two-thirds of clean share classes are more expensive than their bundled equivalents, according to research by consultancy firm Adviser Asset.

The firm has written to the Financial Services Authority (FSA) to warn that the practice of providing a single clean fee to all platforms is "anti-competitive". Of the 1,317 clean share class funds analysed 66.4 % could be obtained at a lower cost via another class of the same fund after the application of rebates. Only 21.6% could be obtained at a lower cost with the clean share class. Earlier this month, IFAonline found a number of providers had raised charges on their funds when moving to clean share classes, either through premium pricing or increased administration fees. Th...

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