Research from the Association of Investment Companies among 239 conventional investment companies (excluding venture capital trusts) suggests that charges (measured by the total expense ratio in this sector) have fallen for the fourth consecutive year. The AIC represents a broad range of closed ended investment companies traded on the London Stock Exchange, AIM and Euronext, incorporating investment trusts and other closed ended investment companies and VCTs.

Just over a third of conventional investment companies have charges under 1 per cent, compared to 30 per cent just over a year ago, while some 70 per cent of conventional investment companies have charges under 1.5 per cent, compared to two-thirds previously. 

Meanwhile, the average charge in the conventional investment company sector is currently 1.41 per cent compared to 1.44 per cent previously.  The figures do not take into account performance related fees, which crucially are only paid if an investment company outperforms by a pre-agreed margin.