BNY Mellon cuts initial charge for UK-based funds

Investors in Newton and Insight funds will no longer pay an initial charge when opening a new investment, following a charges review by parent company BNY Mellon Investment Management.

Previously some share classes levied a front-end charge of up to 7 per cent for some clients, but this will be reduced to zero for BNY Mellon’s UK-based funds from today.

The changes will affect investments in some of the company’s flagship products, including the £8.6bn Newton Real Return fund and the £585.7m Absolute Insight fund, both of which are already among the most popular absolute return funds in the UK.

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Matt Oomen, executive director at BNY Mellon Investment Management, said the move was “in line with the spirit of the RDR”.

“As intermediaries have adapted their business models from a commission to a fee-based structure we have been proactive in our response to make sure our clients gain access to our fund range at a fair cost,” Mr Oomen added.

“As a firm we are committed to simplifying the investment process and reducing the costs incurred by investors.”

The move is likely to provide a boost to inflows for the group. It follows data from the Pridham Report, published earlier today, which showed BNY Mellon to have posted net retail inflows for the year of £1.5bn ranking the group in the top 10 best inflows for the year.