Aberdeen Standard Investments has cut the annual management charge (AMC) across four of its bond funds so that they offer better value for investors, Portfolio Adviser has learned.
In an email to clients seen by PA, the fund group announced from 1 March the AMC will drop 10 basis points (bps) on the UK Gilt, Global Index Linked Bond and Short Dated Corporate Bond funds, and 20bps on the Short Duration Global Index Linked Bond fund.
An Aberdeen Standard Investments spokesperson said: “We regularly review the fees we charge to ensure that the funds continue to represent good value for money for our investors. As part of this review process we have decided to reduce the fees charge on these four funds.”
UK Gilt fund
The £36.9m UK Gilt fund, managed by Liam O’Donnell and Philip Laing, will see the AMC for its Retail share classes drop from 1% to 0.9% and the OCF drop from 1.08% to 0.92%.
At the same time the Platform share class AMC will be reduced from 0.5% to 0.4%, while the Institutional class will see the AMC drop to 0.4% from 0.5%.
Global Index Linked Bond fund
The AMC for the Retail share class of the £1bn Global Index Linked Bond fund, run by Adam Skerry and Tom Walker (pictured), will become 0.9%, down from 1%, while the OCF will be 0.93%, down from 1.03%.
Platform share class investors will see the AMC drop to 0.4% from 0.5% and the OCF will fall to 0.56% from 0.66%. The Institutional share class’ AMC will also reduce to 0.4% from 0.5%, and the OCF will become 0.51% from its previous 0.61%.
Short Duration Global Index Linked Bond
The Retail share class for the £456m Short Duration Global Index Linked Bond fund, also managed by Skerry and Walker, will shed 20bps, from 1% to 0.8%, and the OCF will go from 1.03% to 0.83%.
The Platform share class will also see a 20bps drop from 0.5% to 0.3%, while the OCF will fall from 0.66% to 0.46%. Meanwhile, the institutional share class AMC will fall from 0.5% to 0.3% – the OCF will become 0.41% from 0.61%.
Short Dated Corporate Bond fund
Finally, the AMC for the retail share class of the Short Dated Corporate Bond fund, managed by Daniel McKernan and Mark Munro, will fall to 0.9% from 1%, while the OCF will drop from 1.04% to 0.94%. The Platform share class AMC will become 0.4% from 0.5% and the OCF will become 0.57%, down from 0.67%.
Investors in the Institutional share class will also see the AMC drop to 0.4% from 0.5% and the OCF from 0.62% to 0.52%.
