IA finds no evidence of hidden fees in equity funds

Research conducted with Fitz Partners

The Investment Association has published new research which has found no evidence of hidden fees in equity funds negatively affecting returns earned by investors.

In a new report, the trade body used analysis of the accounts of hundreds of equity funds to find that the asset-weighted average portfolio turnover rate across all equity funds is 40%, too low to support claims of over-trading made by critics. The trade body said equity funds have outperformed their expected return versus markets of -1.6%, returning an average of 0.7% above index returns per annum, which it said also acts as evidence ruling out hidden fees. As a result, the organisation said hidden fund fees, a long-held industry debate, could prove be the "Loch Ness Monster of inves...