Average equity fund charges fell by more than 10 per cent in the first
quarter of this
year, according to new data
The average annual management fee for UK-based equity funds dropped to
1.14 per cent from 1.29 per cent.
The average front-end charge on funds fell to 4.1 per cent
from 4.51 per cent last year.
Bond fund charges bucked the trend, however, with the average initial
charge rising to 3.79 per cent from 3.36 per cent. The average bond fund
annual charge rose margin-
ally to 1.03 per cent from
1 per cent.
The UK still has one of the highest-charging mutual fund industries in
Lipper figures for 2000 show that only funds domiciled in Jersey and the
Isle of Man have higher equity fund front- end charges than the UK.
The average equity fund
initial charge across Europe was just 2.43 per cent last
year compared with 4.51 per cent in the UK.
However, the UK's average annual charges are lower, with an average equity
fund charge of 1.29 per cent last year
compared with 1.49 per cent
Simpsons partner Andrew Merricks believes that fund managers deserve high
char-ges if they perform well but says there is a lot of mediocre managers
who are overpaid.
He says: “Those managers that do charge highly should be exposed for
ripping people off if they consistently fail