Fitz finds better value in 'twin' share classes carrying performance fees

Europe-wide survey

Anna Fedorova
clock • 2 min read

Research provider Fitz Partners has analysed the ongoing charges figures (OCFs) on European products offering 'twin' share classes that charge performance fees, and found these work out cheaper for the investor than the original share class without a performance fee.

The group analysed so-called 'twin' share classes offered on the same European investment products, which are identical in every way apart from the level of management and performance fees charged. Where the original share class does not incorporate a performance fee, a 'twin' share class with a performance fee would have been launched in response to demand from fund buyers, with both share classes targeting the same area of the market.  Though this practice is primarily prevalent in the institutional market, Fitz said these options were also available to retail investors across Europ...

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