• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video

Look beyond zero-fee headlines, urges Portuguese selector

Look beyond zero-fee headlines, urges Portuguese selector
  • Eugenia Jiménez
  • Eugenia Jiménez
  • 29 August 2018
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

The launch of the first zero expense ratio index funds by Fidelity Investments in the US announced on 2 of August sparked controversy among investors and other professionals from the fund industry.

Head of fund selection at Millennium BCP’s wealth management unit in Portugal, Inés Correia (pictured), considers that any fee reduction is positive for end investors.

Related articles

  • Millennium BCP picks up former Caixagest fund selector
  • Fitch cuts six Portuguese banks' ratings
  • How Mifid II can become Mifid III
  • MiFID II demands a mind-set change in delivering best execution

“Mifid II’s philosophy of transparency has been the biggest trigger for cost compression in fund’s management fees.

“The end of the rebates era and the imposition of transparency by Mifid II across the asset management industry has been the biggest push for fee reduction. I think it is very positive that instruments that do not require any active management do not charge management fees.”

However, Correia encourages investors to look beyond the zero-fee funds’ headlines, since management fees are not the only fees charged by index mutual funds and/or ETFs.

“Transactional and operational costs should be closely monitored and analysed alongside the way NAV are calculated.”

During her interview with InvestmentEurope, Correia also referred to Millenium’s exposure to emerging markets amid the recent lira crisis in Turkey.

Although Correia reckons that the latest events in Turkey could have some spill over effects over other EM countries – mainly on the FX side -, she confesses to have not changed her firm’s exposure to EM yet. However, the fund selector admits to be closely monitoring Turkey and other EM countries given the ongoing trade tensions and other geopolitical risks.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Iberia
  • Opinion
  • Turkey
Back to Top

Most read

First digital only bank in UAE set to go live
First digital only bank in UAE set to go live
Standard Chartered names Singapore heavy hitter for global role
Standard Chartered names Singapore heavy hitter for global role
UK government must 'U-turn' on pension age change
UK government must 'U-turn' on pension age change
DeVere UK and Fidelius enter strategic partnership
DeVere UK and Fidelius enter strategic partnership
Bitcoin hits record high on cusp of Coinbase IPO
Bitcoin hits record high on cusp of Coinbase IPO
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading