Fee scrutiny

Interesting research today from Lipper revealed that American mutual funds are much cheaper than their European counterparts. The reason for the large difference in total expenses ratios (TERs), says Lipper, is largely to do with the distribution fees European funds have to pay.

If a price war is really on, as this blog has suggested many times, these fees will have to be closely scrutinised by the fund groups as investors become increasingly conscious of the price they are paying for their investments.