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Hidden fund costs revealed by Mifid II
The new Mifid II trading rules have uncovered the staggering costs involved in investing in popular funds, including those run by Janus Henderson, BlackRock and Vanguard.
The rules, which came into force this month, have forced asset managers to disclose hidden charges. They can no longer provide just an ongoing costs figure (OCF), but must give the total cost, including transaction or trading costs and other charges.
Research by the FT and Lang Cat, the asset management consultancy, has revealed that many investors pay almost double the OCF in the UK’s most popular funds. This can go up to four times OCF if platform charges and performance fees are included.