The Investment Association has published a new research paper looking at fund management charges, transaction costs and performance. The analysis is based on a dataset by Fitz Partners covering 1,350 fund accounts across 16 IA equity sectors between July 2012 and May 2015.
We find that across IA equity sectors:
Overall, our results indicate that there is no excessive trading nor hidden costs damaging investor returns. On the contrary, we find that the UK fund management industry has delivered strong investment returns in recent years.
Read the full paper here.
Read the press release here.