Morningstar: European investors paying record low charges

Intense competition leading to fee cuts

clock • 2 min read

European investors are paying the lowest ever charges on their portfolios, which bodes well for overall performance, according to newly released data.

In its European Fee Study, released 7 December, Morningstar noted that there were several reasons behind the decline - all of which were good news for the end investor. Jose Garcia-Zarate, associate director, manager research, passive strategies at Morningstar, said: "The decline in fees is a big positive for investors because fees compound over time and diminish returns." The research house found the average fee paid by investors was 0.69% in October 2020, a 31% decline from 2013. To calculate this figure, it used the asset-weighted average ongoing charge across all funds for the cat...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Technology cited as main barrier to private market access for advisers

Technology cited as main barrier to private market access for advisers

Follows Oliver Wyman’s and Clearstream’s private markets whitepaper

Sophia Panayi
clock 04 August 2026 • 3 min read
Ascot Lloyd links up with BlackRock for investment offering

Ascot Lloyd links up with BlackRock for investment offering

A move to a single investment provider

Isabel Baxter
clock 04 August 2026 • 2 min read
Beyond London: Adviser opportunities in regional investment

Beyond London: Adviser opportunities in regional investment

Hugi Clarke unpacks the regional growth agenda

Isabel Baxter
clock 31 July 2026 • 1 min read