Gosling's Grouse: A more honest fee debate would better serve investors

Responds to Vanguard's fund fee warning

Good old Vanguard - I think it knew it was going to upset a large number of rivals by suggesting a fund fee warning for investors.

As the FCA finishes gathering submissions to its competition review, Vanguard has waded into the price debate once again with a proposed warning, which puts fees on the same basis as performance figures. In its submission, Vanguard - which it must be remembered runs active as well as index funds, and is good at both - has told the FCA: "Warning. Check how much you are paying. High fees will harm your long-term returns." All of which is true, but also isn't. The academic studies suggest taking averages of funds in certain sectors with lower charges will produce superior returns. IA ...