Morningstar: What has been the impact of RDR on active and passive fund fees?

Some passive fees have reduced by 50%

Passive strategies in the UK have seen their fees cut more than active products across most asset classes since the implementation of the Retail Distribution Review (RDR), but fixed income ETFs have lagged behind, according to research conducted by Morningstar.

The report, entitled The Effects of the Retail Distribution Review on Fund Fees in the UK, found passive funds saw their fees fall on average by 28% since RDR was introduced in January 2013 versus an 18% drop for active funds. In particular, the biggest cut in fees across passive funds came in US equities which dropped 50%, then global emerging market equities and global large-cap equities, which fell 37% and 36%, respectively. For active funds, UK mid- and small-cap strategies saw the biggest decline in fees, dropping 24%, followed by UK equity income funds with an average fall of 22...