One might think, for example, that all ...


One might think, for example, that all investors in a fund are treated equally. But Mr Birdthistle cites a set of JPMorgan equity funds which have seven different types of shares, with opaque names such as Class R5. The main difference tends to be the fees that funds charge. Small investors usually pay most, even those in some Dc schemes. These fees often seem exces- du sive. The author reproduces a table from a single fund managed by Oppenheimer, ch which has six classes of shares, with the cost determined by nine sets of separate figures for each class. Total annual fees range from1.01% to 2.2%. Fees are normally charged as a proportion of the fund's assets, and so rise and fall with the overall market. But does it really cost more to run a fund if the market rises by 20%? Not all fund managers share economies of scale with theirinvestors. One particular fee sticks in the craw. That is the distribution-and-service, or 12b1, fee, which is used to market the fund to new investors. But why should existing investors pay for this process, which will benefit the fund manager? Studies suggest that existing investors get no benefit at all from an increase in fund size. But the industry mopped up more than $12 billion from 12b-1 funds in 2014. 和訳お願いします!!