Funds based in the US are considerably cheaper than those in Europe, according to a report released yesterday.

The study, by Lipper and Fitzrovia, which looked at the total expense ratios associated with operating funds in the US and Europe, found that US mutual funds have lower annual expenses than European funds.

One reason, the report states, is that US funds have larger asset bases and tiered management fees. The asset weighted averages for actively managed equity funds of 0.92 per cent in the US compare with 1.79 per cent for European funds.

US funds spread their expenses across a larger asset base and the use of "break points" on management fees enables them to lower the percentage earned by management as fund assets increase.

Total net assets in Dublin funds reached more than $622.7 billion in the past year, up from $503.3 billion a year earlier, according to the latest edition of Fitzrovia International's Dublin Fund Encyclopedia.