Fund research firm Fitz Partners has found the ongoing charges figures (OCFs) for UK All Companies funds could rise by 0.25% if the Financial Conduct Authority (FCA) goes ahead with its 'all-in' fee proposals.
The firm said the FCA's Final Report on the Asset Management Market Study could drive OCFs of many funds in the sector above the 1% threshold, which is considered 'the ceiling' by many investors when it comes to acceptable fund charges. Currently, 77% of active funds in the sector show OCFs of less than 1% on the clean share class, but with the addition of transaction fees to OCFs, Fitz Partners said a mere 28% of active funds in this sector would remain below a total fee ceiling of 1%. If firms wanted to maintain the OCF they currently charge, it would mean an average cut of 30% in m...
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