Nearly half of advisers say fund costs should be reduced

Advisers who said the cost should be reduced have found that clients are less willing to pay for more expensive funds than in the past. The report, which was published yesterday (7 August), also found that there has been an increase in the use of passively managed funds relative to actively managed. When Aegon last asked advisers in 2020, the split was 68% active, 32% passive, compared with 63% active and 37% passive this year. Only 5% of advisers said that the average fund cost should increase, whilst 51% believe it is at the right level. In 2020, nearly 30% of advisers said they ...