On Monday Les Echos reported on the European Securities and Markets Authority’s (ESMA) study on performance fees charged by UCITs which, together with inflation (albeit to a lesser extent), various charges and entry/exit fees, have on average reduced European investors’ returns by 29%.
BETTER FINANCE urges that ESMA extend the time horizon of its study, as two years (2013-2015) is much too short for equity investment funds (the recommended minimum holding period is typically 5 years, and the funds’ mandatory "KIID" (Key Investor Information Document) requires the disclosure of a minimum of 10 year past performances). Also, 2013-2015 are years of good equity market performance. Other two year periods would have shown different results (see BETTER FINANCE Press Release).
Les Echos mention ‘if the BETTER FINANCE organisation welcomes ESMA’s initiative, it also highlights the limits’.
Read here Les Echos article: Les frais de gestion dans le colimateur de l’ESMA.