CFA UK: Tiered fund fees best for retail investors

Fund managers should consider implementing tiered fees

David Brenchley
clock • 2 min read

Asset managers should "actively consider how tiered fees can be introduced to retail funds" after a study by CFA UK found they were the structure that works most strongly in investors' best interests.

In a report published on Monday (2 December), CFA UK's Fee Structures Working Group assessed the numerous fee models used by retail funds that have been developed in response to competition and regulation in recent years. It evaluated all fee structures in the retail market against its four principles to which funds should adhere in order to act in the best interests of investors: simplicity; transparency; alignment of interest between manager and investor; and fairness to all investors. The CFA UK report concluded it strongly endorsed tiered fees for retail funds, "finding these to h...

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