LONDON - Fund managers in the UK have rushed to discredit research showing that a new type of pooled fund structure which managers are increasingly using costs private investors far more than any other type of fund.

The fund in question is the open-ended investment company and it is growing in popularity with managers because it is easier to sell in Europe where investors are familiar with the structure. However, a study by fund analyst Fitzrovia International of London concluded that investors would be better off putting their money into a unit trust where the average total expense ratio, a figure which measures all the expenses of a fund, such as legal and audit costs and not just the annual management fee, is 1.48 percent for the year ended June 30.

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