Investec scraps initial charge across UK OEIC range
Investec Asset Management has scrapped the initial charge on its UK Open Ended Investment Company (OEIC) fund range, which includes high profile funds such as Alastair Mundy’s Cautious Managed portfolio.
The group said it wanted to make the cost as low as possible for the end consumer.
The change will also apply to funds within its recently-launched Managed Solutions Range – the group’s play in the risk-rated market – as well as its specialist range of funds.
Although many clients do not pay the initial fee if they buy funds through an IFA or wealth manager, with discounts offered because of the amount of money such groups invest en masse, Investec said a number of clients still pay the charge.
As a result, it has scrapped the fee, which was previously as high as 4.5% on some mandates, with immediate effect.
David Aird, managing director of the UK client group at Investec Asset Management, said: “We want to ensure that the end investor can access our funds at zero initial cost and as such we have waived the initial charge on our entire UK OEIC range.”
“We completely support the Retail Distribution Review’s commitment to unbundling, and hopefully reducing costs incurred by investors. We believe that waiving our initial fee is good both for investors, and for the fund management industry as a whole.”
Investec has kept the ability to reinstate the initial charge, enabling it to control the size of its funds if needed.
This article was first published on Investment Week