Investments  

Franklin Templeton reduces fees on equity funds

Franklin Templeton reduces fees on equity funds

The annual management charge of Franklin UK Rising Dividends fund, UK Equity Income fund and UK Opportunities fund has been reduced from 75 basis points to 45 basis points for the W share class.

Effective from 1 July 2016, the management fee on the three UK equity funds’ W share class has been reduced in response to a greater need from UK investors for access to actively managed funds at a lower cost.

The three funds continue to offer the same active stock-picking low-risk approach.

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The funds have been chosen as they are actively managed primarily large-cap portfolios with no capacity constraints.

Jefferson Fawcett, chief investment officer of Casterbridge Wealth and Strategic Solutions Financial Services, said: “As existing investors of Franklin UK equity products, we have long been impressed by the team’s high-quality stock-picking expertise and consistent track record.

“This reduction in annual management charge on three of the Franklin UK equity funds presents an even more compelling proposition and shows willingness from the group to lead the way in the ongoing debate around fees.

“Many clients are focused on preserving as well as growing their wealth, and the Franklin UK Equity team’s philosophy supports this approach.

“Colin Morton’s Franklin UK Equity Income Fund alone has returned well over 500 per cent since he took over the fund in 1995, compared to its benchmark’s total return of 361.6 per cent over the same period to 31 May 2016.

“This is clear evidence that active management can deliver enhanced returns, and with the newly reduced AMC, the value opportunity is even more appealing.”

emma.hughes@ft.com