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Categories:Investments

Rathbone adds fee-only share class on funds

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Rathbone Unit Trust Management is introducing a fee-only share class across its fund range next month.

It will remove the 0.5 per cent trail commission and 0.25 per cent platform fee included in the 1.5 per cent annual charge.

Rathbones says the new i-class will accommodate changing intermediary business models ahead of the RDR. The £62m blue-chip income and growth, £151m global opportunities, £472m income, £65m recovery, £7m enhanced growth portfolio, £58m strategic growth portfolio and £40m total return portfolio funds will each have a 0.75 per cent AMC with no initial charge in the new share class.

The £84m ethical bond fund will have a 0.625 per cent annual charge with no initial charge.

There will be a minimum total investment of £1m for intermediaries wanting to deal in the new share class but this will be waived for those investing through Cofunds, Transact, Fidelity FundsNetwork, Nexus and Ascentric.

Chief executive Mike Webb says: “The introduction of clean i-class units means advisers can continue to consider our funds while being fully compliant with the new legislation that will govern them.”

Fidelity Worldwide Investments, Schroders and Cazenove have all launched RDR- ready share classes that are stripped of trail commission, with annual charges ranging from 0.5 per cent to 0.75 per cent.

Bestinvest senior investment adviser Adrian Lowcock says: “The sooner the fund groups launch clean fee classes, the better. Advisers like ourselves are ready and waiting to start to offer clients an RDR-compliant service.”

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