Unbundling delivers automatic fund performance boost - Bestinvest

Net performance would previously have been measured as gross minus a bundled fee of typically 1.5%. Within an unbundled pricing structure, only the fund manager charge is deducted directly from the performance. Ben Seager-Scott, a senior research analyst with Bestinvest, said a consequence of funds deducting 0.75%, as opposed to the 1.5% bundled fee, will generate an automatic boost in performance. He said: "If a fund used to charge 1.5%, but gave half of that to the adviser/platform/intermediary, then their net performance would be 1.5% less than gross. In an unbundled format, the fu...