In his latest article written for Alan Kohler's Eureka Report, Scott looks at the fund of funds structure.  He highlights the high cost concern with these style of funds providing an example of one fund with the following levels of fees:

1. The brokerage fees when underlying shares are bought or sold (paid to the stockbroker).
2. The fees of the actual fund managers.
3. The fees charged by BT to act as the "multi manager".
4. The fees of the independent investment consultant.
5. The fees to the custodians who hold the actual assets for investors.
6. The commission to the financial adviser (the Product Disclosure Statement says it is an ongoing commission of up to 0.6%).

Click on the following link to read Scott's thoughts - Funds structure in big trouble