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Performance fee rules across Europe lacking harmony

Performance fee rules across Europe lacking harmony
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Investors receive 50% discount following move out of legacy retail classes


Investors receive 50% discount following move out of legacy retail classes
Assessment of value reports
Stephen Little
Investors receive an average discount of 50% after they have been moved out of their legacy retail share class, research shows.
Following the first round of funds assessment of value (AoV) reports a number of asset managers moved investors out of their legacy retail share classes. Over last year, Fitz Partners tracked this.
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AoV-led transfers result in 50% discount for UK investors


AoV-led transfers result in 50% discount for UK investors
UK retail investors have seen their fees halved when moved from so-called ‘legacy’ to clean share classes as a result of the Assessment of Value (AoV) regime, according to Fitz Partners.
The UK-based research firm has tracked the movement of retail investors over the last year from retail share classes charging trail commissions to ones with lower fees.
Using asset managers’ AoV statements, Fitz found that savings ranged between 24% to 67% with an overall average of 49.24%.
Fitz also found that over half (51%) of asset managers have transferred their retail investors into cheaper fund units following publication of the first round of AoV reports. ....

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