GLG to shake up fee structure with UK Select

GLG Partners will launch its UK Select fund to the local market on 3 August, subject to FSA approval, carrying a unique charging structure significantly reducing the manager's margin on the product should it fail to outperform.

In a move set to shake up fee structures in the retail active fund market, the vehicle will have a 1% annual management charge for its performance fee share class – a large percentage of which will be absorbed by IFA and platform rebates, as well as administration costs. The product’s performance fee will be 20% on the excess return over the FTSE All Share total return, with a high watermark. UK Select aims to beat its benchmark by 5% a year on an annualised basis. While the vehicle also has standard share class, with a 1.5% AMC and no performance fee, this will close once the class h...