Australia top for investor friendly fees and expenses

Australia top for investor friendly fees and expenses

Australia has been named as one of the most investor-friendly countries for investment fees and expenses, according to a new survey.

Published by ratings agency Morningstar - the Global Investor Experience survey on fees and expenses, was published yesterday (on September 17). It found Australia was top alongside the Netherlands and the US.

Morningstar said effective regulation in the region had led to high fee transparency in Australia. It also noted Australian markets were closed to funds domiciled elsewhere which meant their low expenses for locally-domiciled funds were not affected by offshore funds.

Italy and Taiwan were named as the least-friendly for investors as they had high fee costs while Italy fell from 'Below Average to Bottom' due to high asset-weighted median expenses and imposed front loads.

"Based on our analysis, we conclude the investor experience is improving across multiple markets given lower fees and ease of entry for investors to buy funds without loads or trailing commission," Morningstar said.

"Across many markets, regulators are stepping up to promote fee transparency, as government policies in these markets have facilitated increased savings through tax incentives, compulsion or both.

"Considerable investment industry growth, helped by rising markets and increased savings, has also put a spotlight on the need to share the benefits of economies of scale with investors," it added.

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Gary Robinson

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