Royal London to increase fund fees

Royal London Asset Management will increase fees for some of its multi-asset, equity and bond funds as it switches to a new fee structure.

RLAM will roll annual management charge and ongoing charge figures into a single mixed fund management fee from 3 June.

RLAM chief distribution officer Rob Williams says the move follows customer calls for “clarity and simplicity”.

Where the cost of running a fund can fluctuate slightly from month to month, clients will now know exactly how much they will pay beforehand.

Thameside Financial Planning director Tom Kean says adding another fee into the mix is “ridiculous” however.

RLAM has not said what will happen with any surplus money given the actual cost of running the fund is higher than expectations included in the fixed rate.

Moving under the new fee structure, transaction costs will continue to be disclosed separately.

Quilter or Merian Global Investors and Invesco have already adopted this model.

The tables below show ongoing charges for individual funds and share classes at October 2018 alongside the charges under the new structure.

Fund Name and Relevant Share Class Current OCF as at 31st October 2018 Fund Management Fee (which will be the same as the OCF following the change)
Royal London Cash Plus Fund
Class M 0.27% 0.25%
Royal London Short-Term Money Market Fund
Class Y 0.09% 0.10%
Royal London Corporate Bond Fund
Class M 0.53% 0.56%
Royal London Duration Hedged Credit Fund
Class Z 0.55% 0.56%
Royal London Enhanced Cash Plus Fund
Class Y 0.17% 0.18%
Royal London Ethical Bond Fund
Class M 0.54% 0.55%
Royal London European Corporate Bond Fund
Class Z 0.40% 0.30%
Royal London Global Index Linked Fund
Class M 0.50% 0.50%
Royal London Index Linked Fund
Class M 0.32% 0.36%
Royal London International Government Bond Fund
Class M 0.49% 0.30%
Royal London Investment Grade Short Dated Credit Fund
Class Z 0.23% 0.24%
Royal London Cautious Managed Fund
Class A 0.69% 0.70%
Royal London Short Duration Credit Fund
Class M 0.33% 0.35%
Royal London Short Duration Gilts Fund
Class M 0.29% 0.29%
Royal London Short Duration Global Index Linked Fund
Class M 0.26% 0.27%
Royal London Sterling Credit Fund
Class M 0.50% 0.53%
Royal London UK Government Bond Fund
Class M 0.44% 0.45%

Royal London Bond Funds II ICVC

Fund Name and Relevant Share Class Current OCF as at 31st October 2018 Fund Management Fee (which will be the same as the OCF following the change)
Royal London Ethical Bond Fund II
Class M 0.54% 0.55%
Royal London Short Duration Credit Fund II
Class M 0.33% 0.35%

Royal London Equity Funds ICVC

Fund Name and Relevant Share Class Current OCF as at 31st October 2018 Fund Management Fee (which will be the same as the OCF following the change)
Royal London FTSE 350 Tracker Fund
Class Z 0.12% 0.13%
Royal London Emerging Markets ESG Leaders Equity Tracker Fund
Class Z 0.30% 0.35%
Royal London UK Equity Income Fund
Class M 0.68% 0.72%
Royal London European Opportunities Fund
Class M 0.73% 0.75%
Royal London European Growth Fund
Class M 0.65% 0.70%
Royal London Europe ex UK Tracker Fund
Class Z 0.23% 0.25%
Royal London Asia Pacific ex Japan Tracker Fund
Class Z 0.26% 0.30%
Royal London Global Equity Diversified Fund
Class M 0.38% 0.41%
Royal London Global Equity Select Fund
Class M 0.67% 0.71%
Royal London Japan Tracker Fund
Class Z 0.24% 0.25%
Royal London UK Mid Cap Growth Fund
Class M 0.75% 0.77%
Royal London UK All Share Tracker Fund
Class Z 0.14% 0.15%
Royal London UK Equity Fund
Class M 0.65% 0.67%
Royal London UK Dividend Growth Fund
Class M 0.65% 0.71%
Royal London UK Smaller Companies Fund
Class M 0.72% 0.77%
Royal London UK Opportunities Fund
Class M 0.72% 0.77%
Royal London US Tracker Fund
Class Z 0.23% 0.25%

Royal London Multi Asset Funds ICVC

Fund Name and Relevant Share Class Current OCF as at 31st October 2018 Fund Management Fee (which will be the same as the OCF following the change)
Royal London GMAP Adventurous Fund
Class M 0.60% 0.60%
Royal London GMAP Balanced Fund
Class M 0.65% 0.60%
Royal London GMAP Conservative Fund
Class M 0.65% 0.60%
Royal London GMAP Defensive Fund
Class M 0.60% 0.60%
Royal London GMAP Dynamic Fund
Class M 0.62% 0.60%
Royal London GMAP Growth Fund
Class M 0.62% 0.60%
Royal London Monthly Income Bond
Class M 0.55% 0.55%
Royal London Multi Asset Strategies Fund
Class M 0.55% 0.55%

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