European Fund Fee Study
European Fund Fees: A Decade of Decline
Over the past 10 years, fund fees across the UK and mainland Europe have steadily decreased. This shift is largely driven by the introduction of lower-cost funds and the closure of pricier options. Both active and passive funds have seen notable reductions, with new active fund fees dropping from 1.3% to 1.0%, and new passive fund fees falling from 0.63% to 0.34%.
The UK leads this trend thanks to a highly competitive market and regulatory reforms, while fees in continental Europe remain higher due to traditional distribution and commission models. The growing popularity of passive funds has further accelerated the decline in average fees, but allocation fund fees have decreased at a slower pace. Our study dives into why investors are increasingly choosing lower-cost funds, particularly in the passive segment, while strategic beta funds are priced between active and passive options.
To learn more about the evolving landscape of European fund fees, download the European Fund Fee Study by completing the form.
