Skandia Life has reduced the average total expense ratio of its Skandia Newton Managed life and pens...
Skandia Life has reduced the average total expense ratio of its Skandia Newton Managed life and pension funds from 0.43% to 0.4.
The decrease results from a change in the management fees paid to Newton, which vary according to fund performance. The changes also apply to the Newton Managed fund in Skandia's Professional Life range.
Jo Gilbey, investment brand manager at Skandia Life, said: "We have negotiated fees down based on the performance investors have received since launch, which has always been first or second quartile. We are expecting that performance to continue.
"To bring fees down at the top end, we had to raise them a little at the bottom end. However, the difference to Newton in payment between top and bottom quartile performance is still £400,000, which we think is a good incentive.
The TER paid on the fund by the investor is now 0.52% if the fund's performance is first quartile, 0.46% for second quartile, 0.35% for third quartile and 0.29% for fourth quartile.
Before the TER was first quartile at 0.72%, second quartile at 0.55%, third at 0.31% and fourth at 0.14.
Despite improved risk appetite
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