Fitz: UK All Companies funds could see OCFs increase by 0.25% under 'all-in' fee rules

FCA Final Report due 28 June

Fund research firm Fitz Partners has found the ongoing charges figures (OCFs) for UK All Companies funds could rise by 0.25% if the Financial Conduct Authority (FCA) goes ahead with its 'all-in' fee proposals in its Final Report on the Asset Management Market Study.

  The firm said the FCA's Final Report could drive up the OCFs of many funds in the sector above the 1% threshold, which is considered by many investors as the ceiling when it comes to acceptable fund charges. Currently, 77% of active funds in the sector show OCFs under 1% on the clean share class, but with the addition of transaction fees to OCFs, Fitz Partners says only 28% of active funds in this sector would remain below a total fee ceiling of 1%. If firms wanted to maintain the OCF they currently charge, it would mean an average cut of 30% in management fee revenues. Active...