Fund managers predict 'dramatic' fall in fees

ETFs popularity set to increase

Almost 75% of fund managers expect fund fees to decline over the next five years, with 14% of this group expecting charges to fall "dramatically".

Research carried out by global events agency FIRST, which interviewed 52 fund managers in May, found 64% anticipate charges to be lower in the much shorter timeframe of 12 months and only 4% expect them to rise. Around 30% said there would be no change to fees between now and the end of April 2017. However, as the fund managers predicted the highest rise in AUM to be in lower cost ETFs, the race to the bottom on fees is likely to continue. Smart-beta ETPs to see 'aggressive' fee reductions as growth hits record levels One fifth (20%) of fund managers said they anticipate ETFs wi...