First State Investments is launching a P share class to its Oeic on which annual management charges...
First State Investments is launching a P share class to its Oeic on which annual management charges will be varied according to performance.
The group's Fee Adjusted Product (FAP), which has been introduced on its Global Opportunities Fund, effectively lowers the annual management charge when the fund underperforms its peers.
The fee is adjusted on a monthly basis. At each point the fee will be calculated at a rate of 1%, 0.75%, 0.4% or 0% per annum depending on whether rolling 12-month performance is first, second, third or fourth quartile. Lipper figures will be used to calculate the quartile performance of the fund in the global growth sector.
As exclusively revealed in Investment Week on Monday this week, Andrew Dalrymple's Global Opportunities Fund will be the first fund to use FAP and will be available from autumn this year through third party life and pension wrappers.
The fund group is refusing to reveal which life companies it will offer the FAP share class through, or which other First State funds will be given the P share class.
It has not decided whether to make the FAP share class available to the clients of intermediaries.
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