Fundmanagershavebeenquietlypushinguptheirfeesaheadofanoverhaulofinvestmentchargesin2013。

AsaresultoftheRetailDistributionReview(RDR),from2013fundmanagerswillhavetosplitoutthecostofadvicefromthecostofinvestmentfundstomaketheindustry’schargesmoretransparentforinvestors。

In2000,theaverageannualmanagementchargeforactiveequityfundswas1。

36%,saysdatafirmLipperinTheSundayTimes。

By2009ithadrisento1。

48%,butlastyearaloneitroseto1。

49%。

“Anannualchargeofthissizewoulderodealmost15%fromaninvestor’sportfolioaftertenyears,”USpassivefundproviderVanguardtellsTheSundayTimes。

Theissueoffeesisanemotiveone。

Fundmanagersdenythattheyareprofiteeringfrominvestors,whilemanyothersseethecomplexityandsteadilyincreasingnatureoffeesasscandalous。

“Fundexpenseshavegoneupfrom1。

5%to1。

7%overthepastdecade。

Thenumberoffundsisthesameandassetsundermanagementhavedoubled。

Soyouhavethesamenumberofpeoplerunningthesamenumberoffundsbutwithtwiceasmuchmoneyin,yetthefeeshavegoneup。

That’sbonkers,isn’tit?