SLI hikes charge on Nimmo's UK Smaller Companies fund

Standard Life Investments is set to increase its annual management charges across seven retail offerings including Harry Nimmo’s £1.2bn UK Smaller Companies fund.

Nimmo's fund, which is set to be soft-closed on 27 August, will see its AMC increase from 1.5% to 1.6% on 1 November.

The group's £30m Global Equity Unconstrained fund, headed up by Mikhail Zverev, will also increase from 1.5% to 1.6%.

Standard Life Investments said it has taken the decision to increase the AMC on both funds to bring it in line with other specialist funds in its range which has an AMC of 1.6%.

"The UK Smaller Companies and Global Equity Unconstrained funds both offer a high conviction management style targeting a high level of alpha," said the group.

"Following the recent review the level of charge has been brought into line with similar funds within our range which offer exposure to specialist strategies or sectors of the market."

The AMC on five other funds will increase from 0.95% to 1%.

The affected funds are the £704m Global Index Linked Bond, £608m Higher Income, £530m Corporate Bond, £105m UK Gilt, and £95m Select Income funds.

The group added its bond funds AMC charges have been held at 0.95% since launch and believe the five basis point rise mirrors other funds offering similar market exposure.

"Within our fund range we have a number of bond funds which were launched with an annual management charge of 0.95%," said the group.

"The charge has been held at this level since launch, in some cases as much as 16 years. However, following the most recent review, the AMC on these funds has been increased to 1%.

"This is a level which we believe is consistent with other funds offering similar market exposure and remains competitive on an overall total expense ratio basis."

The group will write to investors on 11 July to notify them of the changes