Fund groups set for 'race to the bottom' in post-RDR price war

Asset managers will attempt to strike a balance between a poor sales environment and a wholesale move to ‘premium pricing' strategies. These strategies would see the post-RDR world bring with it a two-tier fund pricing structure, as providers ramp up the charges on their bestselling products as well as competing to offer the cheapest funds in the low-cost space. Simon Ellis, managing director of Legal & General Investments' unit trust business, said he and many other big fund providers would like to raise fees and introduce premium pricing, but the reality will be an environment of fa...