Managed fund fees falling

A report by professional services firm KPMG claims that managed fund fees have fallen in the Australian market by an average 6 per cent over the last three years.

Competition from new entrants has seen a dramatic increase in the number of managed funds and superannuation products over the last ten years to literally thousands of investment options.

The report signals good news for investors with declining fees and an ever increasing choice of investment products. Australia, however, has some of the highest fees for managed investment style products in the world, which has had the effect of bringing new entrants into the industry.

While competition is good for the retail investor, the overall fee regime for managed investment products needs to be addressed, ie. fees being set as a percentage of the overall investment portfolio balance.

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