The head of UK retail at Invesco Perpetual said the firm was introducing a clear fund management fee “to make it easier for investors to understand the costs of the funds in which they invest”.
From 1 April, the company’s ICVC investors will pay a new, single fund management fee, which will be equivalent to the ongoing charge quoted in all key investor information documents.
The fund management fee will cover the management of the fund, maintaining the share register, fund governance and administration. Portfolio transaction costs will continue to be applied separately.
Adrian Lowcock, senior investment manager at Bristol-based Hargreaves Lansdown, said: “Invesco Perpetual’s new pricing structure is good news for investors. The new fund manager fee consolidates a number of charges previously not included in the annual management charge.
“This goes a long way to making the cost of investing easier to understand. In addition, with costs such as administration included in the new fee there will be a greater onus on the fund manager to get the best price for services which should reduce costs for investors.”