Fund giants back action on charges as Invesco becomes first to scrap AMC

Some of the UK's largest fund houses are shifting focus to concentrate on ongoing charges after Invesco Perpetual became the first group to ditch annual management charges (AMCs) altogether.

Last week, Invesco introduced a new Fund Management Fee (FMF) which will replace the AMC currently stated on its literature. The FMF represents a fund’s ongoing charge. Now, a number of other major fund groups have said they are preparing to make similar changes. Robin Stoakley, head of UK intermediary at Schroders, said: “We note this development with interest. Our own material is increasingly focusing on the ongoing charge.” Gary Collins, head of EMEA distribution at Threadneedle, added: “We have been talking about TCO [total cost of ownership] for some time, and we are reviewing...