JP Morgan Asset Management head of UK retail sales Jasper Berens says he would like to launch more low-cost active managed funds designed to be an alternative to the passive market.
Last week, MoneyMarketing.co.uk revealed that JPM is launching a low-cost active fund, which it claims may be the first “RDR-ready” Oeic with adviser commission stripped out.
The JPM UK active index plus fund is a rebrand of the firm’s UK active 350 offering and will have a maximum total expense ratio of 0.55 per cent. This includes a 10 per cent performance fee which is capped to ensure the TER does not pass the 0.55 per cent mark.
Berens says: “If this succeeds, we want to offer more of these products in core areas of the market like Europe, the US and global offerings. I see no reason why IFAs will not find this proposition compelling.”
Chelsea Financial Services managing director Darius McDermott says: “I think we will see more of these enhanced tracker-type funds as cost pressures on active funds, which are not top-quartile performers, continue to grow.”