Actively-managed offshore funds may be an easy way for U.S. fund companies to access foreign markets, but their total expense ratios are typically very high and not published anywhere in the fund prospectuses or any other literature, according to a study conducted by Fitzrovia International of London, a research and consulting firm.

The study found that the 464 U.S. actively-managed funds domiciled in offshore fund centers, including Dublin, Luxembourg and the Carribbean, have an average total expense ratio of 2.14 percent, making them a bad investment for most investors, the study states.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.