Royal London Asset Management will increase fees for some of its multi-asset, equity and bond funds as it switches to a new fee structure.
RLAM will roll annual management charge and ongoing charge figures into a single mixed fund management fee from 3 June.
RLAM chief distribution officer Rob Williams says the move follows customer calls for “clarity and simplicity”.
Where the cost of running a fund can fluctuate slightly from month to month, clients will now know exactly how much they will pay beforehand.
Thameside Financial Planning director Tom Kean says adding another fee into the mix is “ridiculous” however.
RLAM has not said what will happen with any surplus money given the actual cost of running the fund is higher than expectations included in the fixed rate.
Moving under the new fee structure, transaction costs will continue to be disclosed separately.
Quilter or Merian Global Investors and Invesco have already adopted this model.
The tables below show ongoing charges for individual funds and share classes at October 2018 alongside the charges under the new structure.
Fund Name and Relevant Share Class | Current OCF as at 31st October 2018 | Fund Management Fee (which will be the same as the OCF following the change) | |
Royal London Cash Plus Fund | |||
Class M | 0.27% | 0.25% | |
Royal London Short-Term Money Market Fund | |||
Class Y | 0.09% | 0.10% | |
Royal London Corporate Bond Fund | |||
Class M | 0.53% | 0.56% | |
Royal London Duration Hedged Credit Fund | |||
Class Z | 0.55% | 0.56% | |
Royal London Enhanced Cash Plus Fund | |||
Class Y | 0.17% | 0.18% | |
Royal London Ethical Bond Fund | |||
Class M | 0.54% | 0.55% | |
Royal London European Corporate Bond Fund | |||
Class Z | 0.40% | 0.30% | |
Royal London Global Index Linked Fund | |||
Class M | 0.50% | 0.50% | |
Royal London Index Linked Fund | |||
Class M | 0.32% | 0.36% | |
Royal London International Government Bond Fund | |||
Class M | 0.49% | 0.30% | |
Royal London Investment Grade Short Dated Credit Fund | |||
Class Z | 0.23% | 0.24% | |
Royal London Cautious Managed Fund | |||
Class A | 0.69% | 0.70% | |
Royal London Short Duration Credit Fund | |||
Class M | 0.33% | 0.35% | |
Royal London Short Duration Gilts Fund | |||
Class M | 0.29% | 0.29% | |
Royal London Short Duration Global Index Linked Fund | |||
Class M | 0.26% | 0.27% | |
Royal London Sterling Credit Fund | |||
Class M | 0.50% | 0.53% | |
Royal London UK Government Bond Fund | |||
Class M | 0.44% | 0.45% |
Royal London Bond Funds II ICVC
Fund Name and Relevant Share Class | Current OCF as at 31st October 2018 | Fund Management Fee (which will be the same as the OCF following the change) | |
Royal London Ethical Bond Fund II | |||
Class M | 0.54% | 0.55% | |
Royal London Short Duration Credit Fund II | |||
Class M | 0.33% | 0.35% |
Royal London Equity Funds ICVC
Fund Name and Relevant Share Class | Current OCF as at 31st October 2018 | Fund Management Fee (which will be the same as the OCF following the change) | |
Royal London FTSE 350 Tracker Fund | |||
Class Z | 0.12% | 0.13% | |
Royal London Emerging Markets ESG Leaders Equity Tracker Fund | |||
Class Z | 0.30% | 0.35% | |
Royal London UK Equity Income Fund | |||
Class M | 0.68% | 0.72% | |
Royal London European Opportunities Fund | |||
Class M | 0.73% | 0.75% | |
Royal London European Growth Fund | |||
Class M | 0.65% | 0.70% | |
Royal London Europe ex UK Tracker Fund | |||
Class Z | 0.23% | 0.25% | |
Royal London Asia Pacific ex Japan Tracker Fund | |||
Class Z | 0.26% | 0.30% | |
Royal London Global Equity Diversified Fund | |||
Class M | 0.38% | 0.41% | |
Royal London Global Equity Select Fund | |||
Class M | 0.67% | 0.71% | |
Royal London Japan Tracker Fund | |||
Class Z | 0.24% | 0.25% | |
Royal London UK Mid Cap Growth Fund | |||
Class M | 0.75% | 0.77% | |
Royal London UK All Share Tracker Fund | |||
Class Z | 0.14% | 0.15% | |
Royal London UK Equity Fund | |||
Class M | 0.65% | 0.67% | |
Royal London UK Dividend Growth Fund | |||
Class M | 0.65% | 0.71% | |
Royal London UK Smaller Companies Fund | |||
Class M | 0.72% | 0.77% | |
Royal London UK Opportunities Fund | |||
Class M | 0.72% | 0.77% | |
Royal London US Tracker Fund | |||
Class Z | 0.23% | 0.25% |
Royal London Multi Asset Funds ICVC
Fund Name and Relevant Share Class | Current OCF as at 31st October 2018 | Fund Management Fee (which will be the same as the OCF following the change) | |
Royal London GMAP Adventurous Fund | |||
Class M | 0.60% | 0.60% | |
Royal London GMAP Balanced Fund | |||
Class M | 0.65% | 0.60% | |
Royal London GMAP Conservative Fund | |||
Class M | 0.65% | 0.60% | |
Royal London GMAP Defensive Fund | |||
Class M | 0.60% | 0.60% | |
Royal London GMAP Dynamic Fund | |||
Class M | 0.62% | 0.60% | |
Royal London GMAP Growth Fund | |||
Class M | 0.62% | 0.60% | |
Royal London Monthly Income Bond | |||
Class M | 0.55% | 0.55% | |
Royal London Multi Asset Strategies Fund | |||
Class M | 0.55% | 0.55% |
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