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.
Continue reading
This content is not freely available. To access 'Hidden fund costs revealed by Mifid II' you need to be one of the following:
-
ACA student
-
This content is available to ACA students. If you want to start the ACA qualification there are several routes you can take
-
Business and Finance Professional
-
An internationally recognised designation and professional status from the ICAEW.
-
Financial Services Faculty: Investment Management
-
Expert analysis, specialist support and trusted technical guidance for investment management professionals.