US investors have reversed a longstanding preference and begun avoiding funds that charge high fees, according to research just published by fund ratings agency Morningstar, in a move seen as ominous for the asset management industry.

John Rekenthaler, vice-president of research at Morningstar, said at a conference organised by the agency in London yesterday that investors in actively-managed investment strategies had poured money into cheaper funds and taken it out of their more expensive counterparts.