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Home > Regulation > RDR News & Analysis

PSigma offers unit conversion on three funds

Fund manager to use institutional share classes post RDR, and offers advisers chance to convert to clean fee option.

By Nick Reeve | Published Sep 07, 2012 | comments

PSigma Asset Management is offering advisers a unit conversion from retail to institutional share classes free of charge to help the transition to RDR.

The Punter Southall-owned fund manager has written to clients using its retail share class, which pays trail commission to advisers and a fee to platforms, to access its three main equity funds.

Managing director Ian Chimes said the offer had already proven popular with advisers operating a fee-based model and wishing to cut off legacy commission payments in preparation for the RDR.

The move will mean investors in Bill Mott’s £380.6m PSigma Income fund can move from the income-paying share class, which has an ongoing charge of 1.69 per cent, to the institutional income share class which has an ongoing charge of 0.94 per cent. Investors will not be affected by the change, Mr Chimes said.

Investors in James Abate’s £23.2m American and £21.6m Global Equity funds are also being offered a unit conversion.

Advisers wishing to take the “one-off opportunity” must sign up before October 1. However, Mr Chimes emphasised there was “no compulsion” to convert units, and both retail and institutional share classes would remain open to new business.

Mr Chimes said: “The new clean fee share classes seem to be the predominant choice for platforms. We expect over time that demand for the retail share class will diminish in favour of the institutional class.”

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