Allianz Global Investors (GI) has launched a lower-cost share class for its £62m UK Opportunities fund as part of broader "product optimisation" plans.
The new share class, which became available this month, has an 0.5 per cent annual management charge (AMC) and an ongoing charges figure (OCF) capped at 0.54 per cent.
Under previous arrangements the fund had an AMC of 0.75 per cent on its C share class, with an OCF of 0.89 per cent.
Adam Gent, head of northern Europe retail and wholesale at the fund house, said: "This news is just the latest step in our product optimisation plans in the UK.
"Allianz GI has been punching below its weight in the UK market and we have ambitious plans to build out our business here. As we do that, we will continue to be guided by the principle that our product mix and fee proposition must reflect the needs of our clients.”
The fund has outperformed both index and sector over three years, returning 31 per cent versus 26 per cent for the FTSE All Share and a 27 per cent IA UK All Companies sector average.
The move comes after the firm merged its UK Unconstrained fund into the UK Opportunities product earlier this year. At the time the firm argued that the two portfolios were "very similar", both being run by the same manager, Matthew Tillett.
Fee pressure has become apparent elsewhere in the UK equity space. Last year Kames cut charges on its UK equity income offering in a bid to ensure the product remained competitive.
Earlier this year, meanwhile, Allianz GI decided to close its £17m UK Tracker fund, claiming its charging structure and size had made it "no longer commercially viable".
