08 Sep 2018 Central Bank of Ireland looks into UCITS performance fees
While management fees are generally declining, the Central Bank of Ireland is investigating performance fees charged by UCITS.
During 2017, around 350 UCITS funds increased performance fees for their funds. When investigating a sample of funds that charge performance fees, around 10% were found to be non-compliant in the way the fee was calculated. The central bank has published a number of clear guidelines for UCITS funds to comply to including whether performance is calculated with gross as opposed to net asset value, use of benchmark indices, etc.