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7IM cuts charges on Unconstrained fund after adviser feedback

Seven Investment Management is renaming its Unconstrained fund and lowering the annual management charge in response to adviser feedback.

From 6 November the fund will be called the 7IM Real Return fund and the AMC will drop from 1 per cent to 0.75 per cent “to be more competitive with other real return products”. As such the ongoing charges figure will fall from 1.26 per cent to 0.94 per cent.

Tom Sheridan, CEO at 7IM, says conversations with advisers highlighted that using ‘unconstrained’ in the fund’s name inferred it was a higher risk product than is actually the case.

“We are renaming the fund so that the name more closely resembles what it does,” Sheridan says. “However we are not changing the workings of the fund.”

Managed by 7IM’s asset allocation team, the £63m fund targets real growth over the medium to long term with a total return that outpaces UK inflation by 2 per cent over a rolling three-year period. The managers have the remit to invest across all asset classes.

Over one year the fund has returned 7.3 per cent compared to the 3.9 per cent average of the IA Targeted Absolute Return sector, FE data shows.

The fund’s largest holding is Source Physical Gold at 6.9 per cent. Last month the firm said its portfolios had taken gold exposure to their highest level due to concerns surrounding a “sea of negatives”, particularly around geopolitical risk, that it expects the market to overreact to.

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