Tiered fee structure could mean lower fees, says CFA UK’s Burton

Solid structures

A recent report published by CFA UK has strongly endorsed tiered fees for retail funds and recommends that managers and fund boards should actively consider how they can be introduced.

“The traditional ad valorem model which is still prevalent in the UK industry today has its flaws; most notably managers are incentivised to carry on growing a fund beyond its optimum capacity. This is a cost that has been borne by the investor,” says Andrew Burton (pictured), Professionalism Advisor, CFA UK.

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