Allianz Global Investors has lowered the cost of its four RiskMaster funds, which will now cap the ongoing charge figure at 99 basis points.
Previously the funds were priced between 1.3 per cent to 1.8 per cent.
Fraser Blain, head of UK retail distribution at Allianz GI, said: “With RiskMaster turning three years old this month, we believe this new, lower, simpler fee structure will allow an even broader pool of investors to access RiskMaster funds.”
The four funds in the range are Defensive, Conservative, Moderate and Growth funds. The funds are given a rating by independent risk-rating experts.
If any of the funds change risk category, the funds are backed by a “volatility promise” where up to 0.75 per cent of the fund’s annual management fee will be waived for up to three months following the change.
All four funds have underperformed their IA sector since inception in May 2012. The best performer was the £21.9m Conservative fund, which returned 7.1 per cent per annum from inception to the end of March, while the IA Mixed Investment 20-60% Shares sector, returned 8.6 per cent in the same period, according to the fund’s factsheet.
