L&G adds share class to multi-manager range

Legal & General is adding an additional share class to its multi-manager fund range with an increased annual charge but no performance fee.

The new share class will have a 1.5 per cent AMC. The current share class levies a 1 per cent AMC plus a 1 per cent maximum annual performance fee. The share class will be added to the £238m growth, £205m income and £23m balanced multi-manager funds.

L&G managing director of unit trusts Simon Ellis says: “The current share class may have come too early and will be more suitable after the RDR.

“The launch of the new share class is in response to IFA demand for a more conventional fee structure in line with our competitors. It will be available through all channels and we will be working with our platform partners to offer it from launch.”

Quainton Hills Financial Planning director Gordon Bowden says: “Multi-manager funds are expensive. There is plenty of scope for lower fees and to make money from 1 per cent AMC. If you are going to charge a performance fee, you should stick to your guns. I cannot see the point of having two fee structures.”