Advisers are being warned to react quickly to hikes in the fund charges levied against increasingly cost-conscious clients, who will demand they justify the impact on returns.
Investment professionals polled by Professional Adviser said a client’s portfolio should be reviewed as soon as possible after any increase to ensure the investment is still suitable. Standard Life Investments sparked controversy last week over plans to up its annual management charge (AMC) on seven retail funds, including the flagship £1.3bn UK Smaller Companies fund run by Harry Nimmo. Investors in Nimmo’s fund will see its AMC upped by 10bps to 1.6% from November to “make it more competitive”, despite the fact SLI is closing it to new money and so is not bearing the cost of marketi...
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