However, this is still a bit confused as there does not seem to be a consistent method by which transaction costs are calculated. "Additionally we have seen a number of our funds, especially the more expensive ones, create new share classes with lower costs, which has moved the overall cost of our multi-asset funds lower,” Mr Westaway adds.
Mr Penny expects the price of multi-asset funds, especially those which are actively managed, to decrease in the coming months due to competition from passive managers.
“The asset management industry is having to really sing for its supper and I don’t see that easing up as we move into the next economic cycle,” he explains.
Moreover, the question of costs is going to continue.
Mr Penny adds: “This new era of enhanced communication and access to unprecedented amounts of data is only going to put more pressure on managers to account for every penny they charge.”
Saloni Sardana is a features writer for Financial Adviser and FTAdviser
