Nearly half of advisers say fund costs should be reduced

Clients are less willing to pay for more expensive funds than in the past

Sahar Nazir
clock • 1 min read

Nearly half (45%) of financial advisers believe that the average fund cost should be reduced, according to Aegon’s adviser attitudes report.

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 ...

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 Your profession

Verso rejects platform incentives model, says adoption must be earned

Verso rejects platform incentives model, says adoption must be earned

Nucleus-built platform rolled out across advice group with no mandated use as consolidator targets £5bn AUM

Sahar Nazir
clock 27 June 2025 • 2 min read
Number of highly vulnerable clients slides

Number of highly vulnerable clients slides

Dynamic Planner research finds

Jen Frost
clock 27 June 2025 • 2 min read
Anthony Carty: Why the nuance of private equity in advice matters

Anthony Carty: Why the nuance of private equity in advice matters

When done right, PE can help deliver sustainable growth for the whole market

Anthony Carty
clock 27 June 2025 • 4 min read