The median investment fee of wholesale managed sector funds is 0.60 per cent, according to research by Rainmaker Information which examined 332 wholesale managed sector funds, with a combined $128 billion in funds under management.
Rainmaker Information director of research Alex Dunnin says the most expensive fees were found to be for international equities, followed in order by Australian equities, property, ‘other assets’, international fixed, Australian fixed and cash.
Dunnin’s research reveals that with retail investors usually paying fees of 2-3 per cent, only one-quarter of fee revenue now goes to fund managers. “It is clearly erroneous then to blame fund managers for high fees when the majority of fees are really charged by the distributors,” he says.
“This revenue shift is obviously behind the current renewed focus towards distribution,” Dunnin says.
