Passive strategies in the UK have seen their fees cut more than active products across most asset classes since the implementation of the RDR, though fixed income ETFs have lagged, according to Morningstar research.
The report, entitled The Effects of the Retail Distribution Review on Fund Fees in the UK, found passive funds saw their fees fall on average by 28% since the Retail Distribution Review (RDR) was introduced in January 2013, versus an 18% drop for active founds. In particular, the biggest drop in fees across passive funds came in US equities which dropped 50%, then global emerging market equities and global large-cap equities, which fell 37% and 36%, respectively. For active funds, UK mid- and small-cap strategies saw the biggest decline in fees, dropping 24%, followed by UK equity inc...
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