Clients will pay the price if AMCs are not rebated

Offshore investors could be losing thousands in extra costs if life companies fail to offer rebates on annual management charges (AMC), Clerical Medical has claimed. Rod Macdonald, marketing manager at Clerical Medical International (CMI), said by not negotiating rebates on initial charges and AMCs on funds, investors could be faced with a hefty bill, which could affect the performance of a fund. He said: "Companies need to be transparent and clients must know if they are being treated fairly or not." For example, if an initial charge of 5% is discounted to 0.25% on a £200,000 inves...