• Search sponsored by

Fund buyers say ‘about time’ as Matthews Asia cuts expensive OCFs

‘We had fed back to them previously that they were unusable unless they changed their approach’

7im
2 minutes

Matthews Asia has reduced the ongoing charges figures across its range of Ucits funds, a move fund buyers say is “about time”.

The firm announced on Tuesday it had cut between 20 and 45 basis points (bps) from the maximum OCFs, depending on the fund and share class. It said the move represents a reduction of between  9% and 36% to the OCFs across the range.

The cuts apply to the equity sub-funds of the Ucits range that is distributed across Europe, including the UK. This includes the Matthews Pacific Tiger, Asia ex Japan Dividend, Asia Dividend, Japan, China, China Dividend, India, Asia Small Companies and China Small Companies funds.

 Matthews Asia fund new OCFs

Pacific Tiger Asia ex Japan Dividend Asia Dividend Japan China China Dividend India Asia Small Companies China Small Companies
Class I TER Cap 90bps 90bps 90bps 80bps 100bps 100bps 100bps 115bps 125bps
Class A TER Cap 180bps 180bps 180bps 160bps 180bps 180bps 180bps 205bps 205bps
Source: Matthews Asia

AJ Bell head of active portfolios Ryan Hughes said it was clear that Matthews Asia’s fees were just too high in comparison to the competition.

“We had fed back to them previously that they were unusable unless they changed their approach and therefore it’s pleasing to see that they have responded,” he said. “These cuts put them back in the pack, rather than lower than average but it is a step in the right direction.”
Fairview Investing director Ben Yearsley also said it was “about time” Matthews Asia reduced its fees because the range has always been too expensive, “which is frustrating as they have a good range of funds”.

“I am a long-term fan of the business though,” he added.

Matthews Asia head of EMEA and Asia business development Neil Steedman said the reductions continue the firm’s “long-standing commitment to offer investors high quality specialist investment products at compelling value”.

He added: “As we celebrate the 10-year anniversary of our Ucits fund range, we are pleased to be able to pass these reductions on to our clients who have invested with us in order to gain differentiated exposure to Asia’s diverse and rapidly growing markets, and to be in position to provide these fee reductions at a time when the majority of our funds have been performing strongly.”

MORE ARTICLES ON

, ,