Hugues Gillibert, CEO at Fitz Partners said: “Equity funds with expense caps show on average lower OCF by 11bps, but this competitive edge comes at a price to the asset managers often forced to heavily subsidise their fund products.”
“The level of subsidy paid by the asset managers into their funds to keep their level of total expenses down is another sign of fee pressures in the European fund market.
“Many asset managers have put fee caps in place so that their funds remain competitive but some of their operating charges have exceeded these caps, forcing them to reimburse these costs or waived their own fees.”
The research found around 24% of funds being sold in Europe currently implement a cap on fees.
