Old Mutual Global Investors simplifies charging structure for Cirilium Portfolios


Old Mutual Global Investors (OMGI), part of Old Mutual Wealth, has written to clients informing them of the introduction of a fixed ongoing charge (FOC) pricing structure to the Old Mutual Cirilium Active and Passive multi-asset portfolios. The new pricing structure will be effective as at 1 June 2017.

OMGI believes the introduction of a FOC will provide greater clarity and certainty to investors over the ongoing costs associated with investing in the portfolios. 

The FOC replaces the current ongoing charge figure (OCF). The fee will include the annual management charge, the ongoing costs of investing in underlying funds and the variable costs associated with managing a fund. The FOC excludes transaction fees, which will be disclosed separately by OMGI. The crucial difference between the FOC and the current OCF model is that under the FOC, OMGI needs to give investors 60 days’ notice ahead of any change to charges, ensuring any potential changes are made clear to clients and conducted in a controlled manner.  

There will be no cost increase to any of the portfolios as a result of this change.

This move reflects the FCA’s desire for fund managers to improve pricing transparency surrounding fund charges, in OMGI’s view, and is aligned with the recommendations made by OMGI in its response to the asset management market study in February 2017.

Warren Tonkinson, managing director, OMGI comments:

“By introducing a fixed charging structure to the Cirilium portfolio range, OMGI is helping to bring greater certainty for investors over the level of cost they will incur going forward.

“This change is reflective of our desire to introduce a clear and consistent approach to fund charging, aligned with the regulator’s drive to improve overall pricing transparency in the asset management industry.”