Invesco Perpetual is set to revamp how it publishes its fund prices from April with a new fund management fee (FMF) and the removal of the annual management charge figure.
The group said its Oeic range of funds would levy the fee - which is equivalent to the Ongoing Charge quoted in all key investor information documents - from April 1.
The move will mean the group quotes this charge for its funds as opposed to using an annual charge figure and an ongoing charge figure.
The FMF covers the management of the fund, maintaining the share register, fund governance and administration including services such as custody and auditing.
Transaction costs incurred by managers buying and selling holdings would continue to be applied separately, the group said, “as they cannot be predicted in advance”. These will be disclosed on its website.
The group said “a lot of the funds” would reduce slightly in price. Reductions range from 1 basis point to 3 basis points, according to the group’s website. Some funds such as Monthly Income Plus, and others which invest in both equities and bonds, have seen the ongoing charge fall by 10 basis points.
Ian Trevers, head of UK retail at Invesco Perpetual, said the lower charges were a result of the company deciding to “earn less on those funds”.
He added the VAT treatment of some constituent parts of the charge had also changed which took roughly 1 basis point off the ongoing charge.
Asked if the move to the FMF figure could be confusing unless other groups adopted a similar method, Mr Trevers said he believed “it is absolutely the opposite” and that the “direction of travel from the regulator is clear” in terms of how charges should be displayed.
