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Invesco Perpetual axes fund AMCs in favour of ongoing charge

Invesco Perpetual is to remove the annual management charge across its fund range and replace it with a single ongoing charge inclusive of registration fees and fund administration costs.

The asset manager’s new fund management fee will be equal to the ongoing charge quoted in its key investor document, replacing the AMC from 1 April.

Trading charges are not included within the fund management fee. Invesco says there will be no additional charges levied as a result of the changes.

The firm says the new charge is in response to regulatory requirements for product fees to be set out clearly and simply for investors.

Invesco head of UK retail Ian Trevers says: “Invesco Perpetual is introducing the fund management fee to make it easier for investors to understand the costs of the funds in which they invest.”

Aurora Financial Planning chartered financial planner Aj Somal says: “Anything that brings more clarity to the true cost of fund management is welcome. 

“But it would be better if all fund management firms adopted the same system to make it easier to compare like-for-like charges. 

“Different groups adopting their own practices may result in unhelpful inconsistency.”

Separately, it emerged last week that the FCA is investigating Invesco Perpetual’s US parent company Invesco over its past compliance controls.

A filing by Invesco to the US Securities and Exchange Commission says the FCA’s enforcement division is conducting an ongoing review of Invesco’s regulatory compliance between May 2008 and November 2012.

The report says: “The company believes its current systems and controls now are adequate and in compliance with applicable regulations.”


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