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JPMAM unbundled claims contradict more expensive clean prices

Firm’s Emerging Markets clean share class is 25 basis points more expensive than it bundled pricing.

JP Morgan Asset Management says unbundled pricing will see customers get a better deal post-RDR, despite launching a clean share class on one of its funds that is more expensive than the bundled version.

Speaking at the Tisa annual conference in London last week, head of funds Jasper Berens said that post-RDR, unbundled pricing would mean that fund managers were no longer subsidising the cost of advice and administration through rebates.

He said: “Consumers are going to get a better deal because retail fund managers have been paying the cost of advice and distribution pre-RDR.”

Money Marketing revealed last week some clean share classes are more expensive than the bundled fund, with increases on clean funds typically ranging between 0.055 per cent to 0.25 per cent.

JPMAM’s Emerging Funds was among the funds highlighted, with a bundled price of 0.75 per cent and a clean price of 1 per cent. Berens said the pricing was an “anomaly” which will be looked at in ongoing discussions.

Following Berens’ comments at the Tisa conference, a spokeswoman for JPMAM says: “If you look across our fund range then it is clear the costs for our clean share classes are broadly equal to the bundled pricing. We have acknowledged the point about our Emerging Markets Fund but that should not get in the way of the fact our funds offer value and in most cases we offer equivalent terms for clean funds.”    

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