Four Capital outlines RDR-ready fund pricing plan
Firm will reduce charges on its existing institutional shares to enable RDR-ready access to its funds.
Four Capital is set to tweak cut the fees on existing share classes on its fund range, to provide advisers with commission-free access to its funds ahead of the RDR.
The group is cutting the annual management charges (AMCs) on its existing institutional share classes from 1 per cent to 0.75 per cent, and enable retail investors to buy the shares.
This move enables advisers to comply with the requirement to stop taking commission from fund sales which comes into force when the RDR is implemented at the start of 2013.
The decision to go with 0.75 per cent AMCs will bring Four Capital in line with most other asset managers, which are also pricing their RDR-ready shares at that level.
Most retail share classes at present tend to be priced at 1.5 per cent but this includes commission payments for advisers and any charges for platforms or other distributors.
James Southern, sales director at Four Capital, said: “Assuming we get approval within the next couple of weeks, the change will be effective from September 1.”
Mr Southern added existing investors will be notified of these changes via the group’s fund administrator JPMorgan.