Lower-cost multi-asset funds have continued to maintain a performance advantage over competitors, with the cheapest products dominating net flows over the last five years, according to research by Morningstar.
Its report, Multi-Asset Trends in UK and Europe 2026, found allocation funds tend to come with higher costs in Europe compared with the UK, where differences in regulation and fund distribution are putting downward pressure on fund costs. UK multi-asset investors exhibited "a high sensitivity to fees", the report stated, expressing a clear preference for the cheapest multi-asset funds. This has also been an added tailwind for the rapid growth of managed portfolio services in the UK, the report said, which has taken market share from multi-asset funds and put additional pressure on fun...
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