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Old Mutual cutting initial fund charges

Old Mutual Fund Managers is slashing charges by more than 25 per cent in a bid to become a major player in the IFA investment market.

The initial charge on OMFM&#39s unit trust range is cut to 4 per cent from 5.5 per cent from January 1.

Initial commission stays at 3 per cent with 0.5 per cent trail. Annual management fees remain at 1.5 per cent.

OMFM&#39s three lower-load funds&#39 charges remain unch anged. The UK corporate bond fund will continue to charge 3.5 per cent initial, and 1.1 per cent annual. The UK All-share Mirror and UK money market funds have no front-end charge and 0.5 per cent annual.

The move is the second stage in OMFM&#39s revamp following its recruitment of several high-profile fund managers this summer.

Former Hill Samuel Asset Management chief investment officer John Ainsworth heads the operation after joining with several of his HSAM colleagues in September.

Last month, OMFM said it will be offering a UK smaller companies fund from January. It will be run by former HSAM star small cap manager Ashton Bradbury.

OMFM head of marketing Ian Pascal says: “Reducing the charges is a signal of our commitment to be competitive in the intermediary market.

“We have got a team of very talented fund managers and this is one of the clearest signs we can send that we are committed and want to be a major player.”

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