JPMorgan Asset Management (JPMAM) has made a widespread change to the pricing structure across its UK OEIC range in a bid to meet transparency requirements made in the Retail Distribution Review (RDR).
The changes, part of JPMAM’s first charging review in over 10 years, will also allow IFAs to make clearer choices about how they charge for their services.
From 1 September 2007, JPMAM will fix the other and administrative expenses at 18 basis points per annum on its ‘A’ shares, irrespective of the asset class, across its entire UK OEIC range (excluding the Institutional Balanced fund and Portfolio fund, both of which are ICVC III offerings). The initial charge on most ‘A’ shares is to be reduced from 5.5% to 4.25%.
The group says it is offering investors and intermediaries a consistent and uncomplicated pricing structure allowing intermediaries more choice in how they agree to be remunerated by their clients.
This will be achieved by introducing a new range of ‘B’ and ‘C’ shares, giving clients the ability to access the same funds at lower fees depending on the size of their investment.
In addition, all existing ‘C’ shares, currently available to some larger investors, are to be re-named as ‘I’ shares as UK retail investors often have very different requirements to their institutional counterparts, JPAM says.
The pricing structure of ‘A’ shares will remain the same with most having an annual management charge of 1.5% per annum. The new ‘B’ and ‘C’ shares will mainly be priced at 1% and 0.75% per annum respectively.
Jasper Berens, head of UK Sales at JPMorgan Asset Management commented, “Transparency and clarity continue to be major talking points within the financial services industry. We are therefore happy to be heralding these changes now as we are genuinely committed to delivering the very best and fulfilling our clients’ needs in an ever-changing and complex market place, by not only listening to their concerns but by addressing them in a proactive and practical manner.”
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The Aviva Investors Multi-asset Funds (MAF) target equity risk rather than absolute volatility. Thomas Wells, Multi-asset Fund Manager, explains that while absolute volatility varies significantly over time, the inherent risk of investing in equities remains relatively constant.
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