Threadneedle is to roll out a range of commission-free share classes across the majority of its fund range, and waive initial charges for advised UK retail investors, as it makes its proposition ready for the post-Retail Distribution Review (RDR) world.
The asset management giant, the UK's third largest retail fund manager, has unveiled a commission-free share class - with a 0.75% AMC for most of its equity funds - which will be available from the end of the year.
The Z share class will be used predominantly by wealth managers and IFA firms, and will apply to vehicles including the group's popular UK Equity Income fund - run by Leigh Harrison and Richard Colwell - and Cormac Weldon's (pictured) American fund.
In total 51 funds will have their own Z share classes, which will sit alongside the 1% AMC share class available to direct retail clients, and the 1.5% AMC share class.
A small group of funds - including the group's Balanced Managed, UK Short-Dated Corporate Bond, Worldwide Select and US Equity Income fund - will use the institutional share classes that already exist for them instead of having new Z share classes.
Gary Collins, Threadneedle's head of UK distribution, said: "Threadneedle has a broad range of retail funds and we have chosen to launch unbundled share classes for the majority of our range to ensure that all of our funds will be accessible via this route from early next year."
As part of the changes, Threadneedle will also waive the initial charge on all UK advised business. Typically most platform business across the industry is now free of initial charges but the change means advised clients who are not on platforms will no longer pay initial charges.
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