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...

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