Investors could be faced with a plethora of fund charging models post-RDR as well as higher overall costs and ‘premium' prices for a top tier of better performing funds or specialist mandates.
Fund groups are working on developing pricing structures for their ranges to meet requirements post-2012. However, divisions are opening up between providers and platforms on how best to meet investors’ demands. Momentum is also building behind a sliding charging structure for funds based on performance, with higher alpha products priced at a premium, leading to greater differentiation between funds. Many industry experts already forecast costs will increase for consumers post-RDR. They say the traditional total annual management charge of 1.5% will be scrapped and overall charges may...
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