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The £268.7m of this that went to the Ontario pension funds cost the UK an estimated £72.5m in tax revenues.
That means that the newsletter's market-timing decisions and recommended mutual funds cost the portfolio an average of 2.6 percentage points a year.
A committee statement said the profit grew through unused contingency funds, cost cuts on site restoration and savings on ceremonies and litigation.
No one knows how much exchange funds cost the government in taxes because no official study of their costs has been made.
"People don't realize how much active funds cost them," said Tamar Frankel, professor of law at Boston University School of Law.
William Goetzmann of Yale University estimates that in the 17 months to June 1998 trading on stale prices in 116 mutual funds cost investors 0.44% of the funds' assets, or $1.5 billion.
Similar(44)
But mutual fund prospectuses are the go-to documents for investors weighing funds' costs and performance.
Ill-advised buying and selling of funds costs the investing public a substantial sum.
And because the money is invested in index funds, costs are kept to a minimum.
If the rate were cut to 0.75percentt, some funds' costs would exceed the interest rate.
Over time, the difference in funds' costs can have a significant effect.
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