M&G, one of the biggest names in retail fund management (having pretty much invented unit trusts) has announced a more transparent charging approach that is both cheaper and more logical.
The larger funds they run will be subject to discounted charges. The bigger the fund, the better the discount. That is how all fund managers should operate. Many milk their flagship funds for millions in fees while running far too many “me too’ small specialist offerings that the market does not need and which would just not be viable without the subsidies from their cash cow siblings.
Fund manager charges are the most persistent cost for the retail investor. I don’t mind at all if the fees are reasonable when results justify them, but it has always seemed unfair that as funds become gigantic, the operator and even the fund manger in person acquire a growing cash flow of millions without offering the supporting investors any extra benefit.
I hope this is the start of a trend.
You must be logged in to post a comment.