IA finds no evidence of hidden equity fund fees

The trade body used analysis of the accounts of hundreds of equity funds to find that the asset-weighted average portfolio turnover rate across all equity funds is 40%, too low to support claims of over-trading made by critics. The trade body said equity funds have outperformed their expected return versus markets of -1.6%, returning an average of 0.7% above index returns per annum, which it said also acts as evidence ruling out hidden fees. As a result, the organisation said hidden fund fees, a long-held industry debate, could prove be the "Loch Ness Monster of investments". The r...