Artemis Investment Management has waived initial charges across its fund range, which includes high profile vehicles such as Adrian Frost and Adrian Gosden's £620m Artemis High Income fund.
The firm has decided to drop initial charges, previously between 5% and 5.25%, as intermediaries revamp their charging structures in response to the Retail Distribution Review (RDR).
Ross Leckie, director of communications at Artemis, said: “Post RDR, with most intermediaries changing their charging structure from a commission- to a fee-based model, the mechanics of an initial charge became outdated. So we decided to waive ours from January this year. As things stand, it is most unlikely that we would reintroduce the initial charge.”
Artemis is not the only group to have cut its initial charge since RDR came into force. Investec Asset Management also removed initial charges on its UK OEIC fund range earlier this year.
David Aird, managing director of the UK client group at Investec Asset Management, said the group wanted to make the cost as low as possible for the end consumer.
“We completely support the Retail Distribution Review’s commitment to unbundling, and hopefully reducing costs incurred by investors. We believe that waiving our initial fee is good both for investors and for the fund management industry as a whole,” he said.
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