Rothschild tries to force UT groups to lower fees

Rothschild Asset Management's £1bn fund of funds division is trying to force unit trust groups it deals with to discount their annual fees by up to 1%. Investment Week understands that leading groups, including Jupiter, ABN Amro and Merrill Lynch, are not prepared to provide fund management on portfolios with an annual management charge of 1.5% for as little as 0.5% a year. Typically, an annual fee can be reduced as low as 0.75% for funds of funds. Many of the largest, best known groups that Investment Week has spoken to have confirmed they are either unwilling to deal at Hambi's terms,...