Investec to launch RDR share classes

Investec Asset Management has said it is going to launch ‘fully clean’ 75 basis point share classes for its fund range ahead of the RDR.

The group is the latest in a long line of groups to ready their businesses for the RDR, which comes into force on January 1 2013 and will see trail commission on new business banned.

Investec’s 75 basis point model falls in line with several other groups which have already declared how they will charge clients post-RDR.

BlackRock, Rathbones, Schroders and London-based boutique City Financial are just some of those which have chosen the ‘fully clean’ 75 basis point route, which strips out adviser commission and platform charges.

However, Invesco Perpetual and Mam Funds have chosen a 1 per cent share class, which includes a platform charge of approximately 25 basis points bundled into the price of the fund.

David Aird (pictured), managing director UK distribution at Investec, said: “We have decided to launch the share classes now partly because the advisers and platforms we work with are saying they want us to ready ourselves and be in a position of having clean share classes.”

Mr Aird said the new share classes would feature across the group’s entire fund range.

He also said the total expense ratio for investors who buy the funds with the clean share classes would be between 84 and 87 basis points.

The group also recently outlined plans to market four funds as its Managed Solutions range, including Alastair Mundy’s Investec Cautious managed product, of risk-rated products with RDR share classes.