Investment trust charges under pressure as OEICs undercut rivals

clock • 3 min read

Investment trust providers are coming under pressure to reduce annual management charges after being undercut in certain sectors of the market by OEICs and unit trusts.

The introduction of ‘clean’ share classes, which have already been launched by the majority of fund management houses to meet requirements for the retail distribution review (RDR), has lowered the direct fees charged to retail clients on a number of open-ended vehicles. The vast majority of fund management groups have priced the average open-ended fund at 0.75% for the RDR-friendly share class, which has led to a number of the vehicles becoming cheaper propositions than investment trusts. According to broker Winterflood, investment trust providers such as Baillie Gifford, BlackRock, J...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot