Nomura Asset Management will reduce the fees across the share classes of several funds – including its high-conviction range – and will introduce a founders fee across a further seven of its products from 1 July.
Funds including India Equity, Japan High Conviction and Asia Ex Japan High Conviction will see a 25% reduction in the investment management fees of their I and ID share classes to 0.75%, while the A share classes of the Global High Conviction and Global Sustainable Equity funds will see reductions of 0.2% and 0.3% respectively.
The Asia High Yield Bond and Emerging Market Local Currency Debt Bond funds will see fee reductions of 0.1% to 0.6% across their I share classes, while the former's A share class will reduce its fees by 0.2% to 1.2%.
Peter Ball, managing director at Nomura Asset Management UK, said the decision to reduce fees was two-fold - to account for the fact rebates across UK products are not possible but are across Europe, and that the firm wants to be "ahead of the curve" as the industry faces greater pressure to lower charges.
"In truth, I felt we were a bit out of line with the rest of Europe. Across Europe you can apply rebates so whatever the headline rate is, it does not really matter because you can rebate to whatever you agree is a sensible fee," he said. "But in the UK, rebates are just not really possible - so having the right headline share class fees is important.
"There has also been an ongoing downward pressure on fees, so we are just making sure we are in the right place. For the UK, it was making sure that there was a share class fee level, rather than doing it by rebate. It was a chance for us to get ahead of the curve and make our products super competitive."
Elsewhere, Nomura has introduced new ‘founders fee' F-share classes across all of its products that have less than $150m of assets under management, which will have management charges of 0.1%.
These include the Asia Ex Japan High Conviction, Asia High Yield Bond, Asia Investment Grade Bond, Emerging Markets Local Currency Debt, Global High Conviction Fund, Global Multi Theme and Global Sustainable Equity funds.
"Some firms have big insurance companies backing them and they can get their seed capital up right away, but we don't have that luxury. Therefore, we have to be more inventive in terms of getting our funds up to size," Ball explained.
"Many investors will not allocate more than 10% of a fund's AUM so, if it is only £15m, they will not bother. It is critical to get funds up to that £50m or £100m mark.
"As a result, our headquarters in Tokyo have agreed to 10 basis point charges for every fund that is subscale."