Smith & Williamson Investment Management has thrown down the gauntlet to its rival active managers by reducing the fees on 13 of its funds.
The investment manager has cut the clean share class annual management charge (AMC) from the typical fee of 0.75 per cent to 0.65 per cent on a range of its equity and multi manager funds.
It has also reduced the charges on some of its fixed income funds from 0.65 per cent to 0.55 per cent. The full table is below.
The reduction in fees comes as Pictet Asset Management is also set to reduce its fees on a range of funds, as revealed by Investment Adviser.
Platforms have been putting pressure on fund management houses to reduce fees below the standard AMC of 0.75 per cent, often through preferential deals, but Smith & Williamson and Pictet have decided to unilaterally drop charges.
Nick Hodgson, head of marketing and sales at Smith & Williamson, said the firm had reviewed its fees and “concluded that we can reduce them for those funds which are not capacity-constrained”.
| Fund | Old AMC (%) | New AMC (%) |
| Cash | 0.7 | 0.3 |
| European Growth | 0.75 | 0.65 |
| Far Eastern Income & Growth | 0.75 | 0.65 |
| Fixed Interest | 0.65 | 0.55 |
| Global Gold & Resources | 1 | 0.65 |
| Global Government Bond | 0.65 | 0.55 |
| Medium-Dated Corporate Bond | 0.65 | 0.55 |
| MM Endurance Balanced | 0.75 | 0.65 |
| MM Global Investment | 0.75 | 0.65 |
| North American | 0.75 | 0.65 |
| Oriental Growth | 0.75 | 0.65 |
| UK Equity Growth | 0.75 | 0.65 |
| UK Equity Income | 0.75 | 0.65 |
