Fitz Partners: Switching to clean share classes could save investors up to 55%

Average OCF discount of 44%

Mike Sheen
clock • 2 min read

Investors in pre-RDR retail classes could be paying 55% more in fees than if they were invested in clean share classes, according to Fitz Partners.

The research firm's UK Fund Charges database revealed Baillie Gifford investors would benefit on average from a 55% discount on their Ongoing Charges Figure (OCF) and 56.5% reduction on management fees from switching from a pre-RDR share class to a clean one. Fitz finds better value in 'twin' share classescarrying performance fees RDR, which came into force in 2013, is a set of rules aimed at introducing more transparency and fairness in the investment industry. The Financial Conduct Authority's final fund market remedies, published in April in response to the regulator's Asset Man...

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