The firm had previously planned to waive the fee from April 2012, but has now decided to scrap it altogether with effect from 15th February. The fund, which was launched three years ago, has around £100m in AUM.
The annual management fee on the fund, however, will be increasing by five basis points. This is to reflect the complexity and additional costs associated with running absolute return funds. On the B share class it will increase to 0.80% from 0.75% and on the A share class the new fee will be 1.55%, up from 1.50%.
Kames Capital’s head of retail distribution Steve Kenny says: ‘We have made these changes following consultation with our client base. Our conclusions from that feedback were that for this type of fund there is an overwhelming desire for simple fee structures in the post-RDR world. We have increased the annual management charge because of the additional complexity and time required to manage an absolute vehicle."
Yesterday the IMA announced the outcomes of its Absolute Return Sector Review, which had a luke-warm reception from the fund-picking community. Read our take on it here…
