SLI, now a division of the newly merged fund group Aberdeen Standard, is the latest firm to jump on the price cutting bandwagon, as the asset management industry grapples with transparency around fees.
From 1 November, new and existing investors in the MyFolio market range will see a reduction in annual fees between 0.150 and 0.325 percentage points, depending on the share class they are invested in.
Investors in the MyFolio Managed and Multi-Manager funds will see a reduction of 0.175 percentage points, if purchased through third party platforms in the UK.
The suite of funds, headed up by Bambos Hambi (pictured), includes 25 different vehicles and as at last year contained £10bn in assets under management.
Following an internal review, SLI decided an adjustment should me made to its MyFolio range of funds, explained Iain McLeod, MyFolio Investment Specialist at Aberdeen Standard Investments.
He said: “We regularly review our funds in order to ensure that we are always acting in the best interests of our investors.
“This change further enhances our market-leading proposition for investors in the risk-based fund of funds market.”
The changes to its charging structure comes months after the Financial Conduct Authority made fees one of the centrepieces of its asset management study and amid ongoing pressure from passive competitors offering cheap funds.
Less than a week ago, competitor Fidelity announced it will be switching to a performance-based fee model.
McLeod continued: “Through MyFolio, we aim to strike the balance between the risk an investor is willing to take and the potential rewards they receive in return. Since its launch in September 2010, investors have enjoyed returns which have been, without exception, in line with their chosen level of risk.
“This consistently strong performance over the last seven years has made MyFolio an enormously successful solution in the post RDR era and we thank advisers and investors alike for their continued support.”
