Lipper study reveals extent of UK fund fee hikes

More than 150 UK domiciled funds - equivalent to 12% of the total universe of funds today - have raised annual management fees over the past decade, a new Lipper study has revealed.

By contrast, just 40 funds lowered their fees over the same period, equivalent to 3% of the total universe. But the trend of rising fees “tailed off dramatically” in 2009 and 2010, according to the report, which investigates the changing face of existing mutual funds’ AMCs over a ten-year period. A drop in fund sales and performance in the aftermath of the financial crisis is likely behind the changing pattern. Ed Moisson, author of the report, said this year has begun to see an increase in activity in terms of fund fees.  “Activity was very muted in 2010 across the board, altho...