Advisers failing investors on fund costs - Defaqto

Laura Miller
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Three quarters of advisers are using the wrong measures to compare fund costs, giving clients an inaccurate picture of the charges eating into their returns, according to research by Defaqto.

Fund groups shared the blame, it said, for failing to be clear about all the fees they charge investors. As a result, advisers are underestimating the all inclusive total cost of investing which in reality can be up to 3% per year, even for clients with big portfolios that would usually benefit from lower fees, it said. The research again raised serious questions about what is good value for clients, less than four months after a damning report by the influential Financial Services Consumer Panel (FSCP) that called on the regulator to implement "radical, structural reform" of how fund...

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