Iboss uses passives to cut fees

Iboss uses passives to cut fees

Iboss Asset Management has cut charges across its four-strong range of multi-manager funds by upping the use of passives, citing client demand and an increased regulatory focus on costs.

The ongoing charges figures (OCFs) on the risk-rated offerings, MGTS Iboss 1, 2, 4 and 6, have fallen by between 32 and 42 basis points (bps).

The new charges now range between 78 and 95 basis points.

Chris Metcalfe, who runs the portfolios, said: "We have listened to the regulators and our clients on both costs and the benefits of active management and we feel these are now best of breed.”

He said the cuts had been made possible by a decision to increase the use of passive vehicles, including the use of three UK trackers in the place of active funds.

The changes come as active managers face increased scrutiny on costs from the FCA, which is currently in the process of collecting responses to the interim findings of its asset management market study. The report was critical of the fees charged by active funds in relation to passives.