Scottish Widows Investment Partnership (Swip) is to pay 0.5% renewal commission to intermediaries fo...
Scottish Widows Investment Partnership (Swip) is to pay 0.5% renewal commission to intermediaries for the first time on the £14m Hill Samuel Managed Extra Income unit trust.
As part of this introduction, the group is raising the annual management charge on the fund.
The AMC is to increase from 0.65% to 1%. An initial charge of 3% will still apply and intermediaries will continue to be paid initial commission of 3%.
Bob Lawson, marketing manager at Swip, said the charge is being increased to bring it in line with industry standards and to have more appeal to advisers through the ability to pay renewal commission.
Managed by Gareth Quantrill, the Managed Extra Income fund is ranked 28 out of 58 funds in the UK corporate bond sector over three years. It returned 16.8% offer to bid, compared to a sector average of 15.8%, according to figures provided by Standard & Poor's.
Although the group is converting some of its unit trusts to Oeics this month, this fund is not in the initial tranche of conversions and the name will not be altered in the immediate future.
Last month, Investment Week revealed Swip was to convert several Hill Samuel exempt funds into a high performance Oeic range for sale into the intermediary and multi-manager community.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected