Investor Economics Insight June 2021

Industry MERs Continued to Decline in 2020

Over the years, profound changes in distribution practices and the growing scale of the business have resulted in paradigm shifts in both pricing and usage of different products and fund series. The rise in popularity of index-tracking products and unbundled fee series, such as F-class, have been key drivers behind repricing in recent years.

The June issue of Insight documents two interconnected subjects of importance to the investment funds industry. Firstly, the progress of the industry’s downward shift in fund pricing. Secondly, the multi-series landscape, with a focus on developments that occurred in 2020. The Trendlines article uncovers pricing trends in emerging product strategies in the ETF market.