Passive Fund Fees Fall and Investment Trusts Sales Soar

NEWS YOU CAN USE: What happened in the City in September? Passive fund providers have competitively reduced charges and closed-end funds are on track for a record year

Emma Simon 1 October, 2015 | 10:09AM
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It’s been another testing month for investors. Market volatility has continued, with large blue chips Glencore (GLEN) and Volkswagen (VOW) suffering heavy falls. Due to the respective size of these companies, this has hit valuations on many UK and European index funds this month – as well as causing problems for some less nimble active managers.

Much of the investment news this month has focused on passive funds and investment trusts – two areas that have seen a steady rise in sales since RDR rules to make fund charges more transparent came into force in 2013. With further price cuts, new launches and lower discounts this trend looks set to continue.

Passive Funds Price War Intensifies

Fidelity Worldwide Investment has fired the latest salvo in the passive fund ‘price war’. It has cut charges on its seven main index funds.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Glencore PLC315.75 GBX1.32Rating
Volkswagen AG279.20 EUR-0.14Rating

About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk

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