Fitz: 'Twin' share classes with performance fees boost costs for most investors

77% of twin share class investors charged a performance fee

Fund investors opting for ‘twin’ share classes with performance fees are more likely to have been saddled with higher costs than those opting for share classes charging a management fee alone, according to Fitz Partners.

Twin share classes, which are identical to their traditional counterpart other than the level of management and performance fees charged, have proliferated in availability in the last two years as part of an ongoing drive for fee innovation in asset management. Fitz Partners: Investment advisory fees drop 13% in two years The research house identified 22 providers offering 167 sets of twin share classes domiciled either in Luxembourg, Ireland or the UK, up from 43 sets in September 2017. Fitz Partners found that while investors offered twin performance fee share classes save an ave...