The battleground of fund charges is beginning to gather momentum and is set to only accelerate as the industry comes to terms with the market volatility and its effects on investor behaviour.
US group Vanguard started the fight with the launch of is US tracker fund at 0.15% and HSBC responded in this market by cutting its charges on a wider range of funds shortly afterwards. And now GLG, as reported in last week’s Investment Week, has moved the debate on considerably with its alternative structure of a lower initial annual management, which effectively just covers the cost of distribution, and the addition of a performance fee, based on an outperformance on the FTSE All Share. As GLG’s co-head of distribution Richard Phillips commented, the proof of this charging structure...
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