OLD MUTUAL GLOBAL INVESTORS SIMPLIFY FUND CHARGING STRUCTURE
Old Mutual Global Investors has today announced it is improving the transparency and consistency of its fund costs, by introducing a fixed expense charging structure.
The objective of the change is to remove the uncertainty clients face regarding the level of expenses they bear when investing into Old Mutual Global Investors funds. Although there is no “industry standard” approach, many major UK investment houses have taken steps to improve the clarity of their fund expenses.
From 9 January 2015 Old Mutual Global Investors fund expenses will be set at a fixed rate based on forecasted operating costs. This expense rate is not subject to fluctuations, so clients will have greater certainty over the level of cost they will incur in the future.
This change is in line with the FCA’s recommendations for asset managers to adopt a clear and consistent approach to fund charging, in order to make it easier for clients to compare costs between different providers. The changes Old Mutual Global Investors is making are broadly consistent with the actions taken by other major investment houses.
The business will introduce a volume discount to large funds to ensure the economies of scale benefits associated with operating larger funds are passed on to clients. As a consequence of introducing a fixed expense charging structure, circa 60% of share classes will see a reduction or no change in price. The ongoing charge (OCF) of the share classes will be subject to an annual review.
Warren Tonkinson, Head of Global Distribution, comments:
“The costs of funds can vary hugely between different providers, making it hard for customers to compare similar solutions. We are fully supportive of the movement by the FCA to improve transparency surrounding fund charges and will implement a fixed charging approach to reflect this.
“The calculation of the new fund prices has been undertaken with great care and Old Mutual Global Investors has taken on the associated risks of managing fund charges going forward, in order to limit fluctuating costs.”
For full details of the changes click here.
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Amelie Shepherd, PR Executive
+ 44 20 7 332 8345
07823 348 792
Vee Montebello, Head of PR and Internal Communications
+ 44 20 7 332 7687
07872 665 149
Notes for Editors:
Old Mutual Global Investors:
Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £17.4 billion*. The team consists of 203 industry professionals, including a team of 52 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to: www.omglobalinvestors.com
Old Mutual Wealth:
Old Mutual Wealth is a leading retail investment business in the UK and internationally. It aims to help people who want to make a positive change for themselves, those close to them or the society they live in by helping them secure their financial future.
It has an adviser and customer offering spanning:
- Financial advice via the Intrinsic network and independent financial advisers
- Platform based wealth management products and services via Old Mutual Wealth in the UK and Skandia International globally
- Asset management solutions via Old Mutual Global Investors
Old Mutual Wealth currently oversees £82.2* billion in customer investments.
Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 16 million customers across the world and has a total of £308 billion* assets under management.
*as at 30 September 2014
Important information: Past performance is no guarantee of future results. The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested.
This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), which is a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591559. OMGI 11/14/0050