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Should you pay investment trust performance fees?

Extra fees are never welcome but in some cases may be worth paying
Should you pay investment trust performance fees?
  • Open-ended funds rarely levy performance fees 
  • Performance fees are more common among investment trusts and in some cases may be worth paying
  • How to assess whether a performance fee is fairly structured

Investing in funds has never been cheaper. In late 2020, research company Morningstar noted that the average European investor paid “lower expenses than ever before,” thanks in part to the relentless rise of passive funds and greater cost awareness.

UK investors have already benefited substantially from this trend with newer developments bringing further advantages. The arrival of value for money assessments has resulted in many investors being moved into cheaper fund share classes and put additional scrutiny on fees.

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