Charges on the rise?
It looks like all the recent innovation seen with trackers will cost you money!
The new SocGen products (see "Four new Green trackers from SocGen" below) charge a princely 1% in management fees plus a 1% initial bid offer spread. Breaking the 1% barrier is a rather disappointing innovation (except of course in the conventional unit trust sector where 1% plus fees are sadly common). I have no doubt that the currency hedging at the heart of the SocGen note costs money but 1% is a little excessive and simply wouldn't fly in the more competitive US space. A fee of 0.75% for a specialist fund should be tops and one only hopes that as competition intensifies, that 1% charge will be forced won.
The new SocGen products (see "Four new Green trackers from SocGen" below) charge a princely 1% in management fees plus a 1% initial bid offer spread. Breaking the 1% barrier is a rather disappointing innovation (except of course in the conventional unit trust sector where 1% plus fees are sadly common). I have no doubt that the currency hedging at the heart of the SocGen note costs money but 1% is a little excessive and simply wouldn't fly in the more competitive US space. A fee of 0.75% for a specialist fund should be tops and one only hopes that as competition intensifies, that 1% charge will be forced won.
posted by Editor at
5:46:00 am
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