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Investec AM goes 'super clean' on its six best-selling funds
by Dylan Lobo on Sep 23, 2013 at 09:13
Investec Asset Management has launched 'super clean' share classes on six of its best-selling funds.
The move comes as platforms put pressure on fund groups in the wake of new rules that ban payments from product providers - which will be introduced in 2014 albeit with a two-year sunset clause - alongside HMRC's decision to tax rebates earlier this year.
Under the arrangement, Investec will offer a share class 10 basis points cheaper than the ‘clean’ share classes, which were launched across the industry in preparation for the introduction of the retail distribution review (RDR) at the start of this year.
The Investec super clean class levies an annual management charge of 0.65% and applies to six of its funds.
Three of the funds are within its Managed Solutions range; Alastair Mundy's Cautious Managed fund, Philip Saunders' Investec Diversified Growth fund and the Investec Diversified Income fund, managed by John Stopford.
The remainder sit in its specialist range and comprise UK Special Situations , which is also run by Mundy, alongside the group's Bradley George and George Cheveley-managed Enhanced Natural Resources fund, and the Investec Emerging Markets Blended debt fund, managed by the team headed by Peter Eerdmans and Werner Gey van Pittius.
A number of fund groups, such as Fidelity, have said they have no intention of launching super clean share classes, while the likes of M&G has warned that fund managers face shelling out substantial amounts to issue additional share classes. Others have privately indicated reservations about being forced into the move by the big platforms.
Investec managing director of the UK client group, David Aird (pictured), insisted his firm had not been bullied into action. ‘This super clean debate is not something which has crawled out of the woodwork. The driver of this has been demand from the market, which has enabled us to execute a business plan which is transparent and cost effective,’ he said.
‘We believe we can move confidently as a first mover after we successfully took a clean share class to the South African market earlier this year. We’ve been in discussions with clients and they’ve been looking at super-clean share classes ever since HMRC said rebates would be taxed. This is not something we’ve been forced into.’
The move comes after Standard Life said it had received 'super clean' preferential fund terms from 15 major fund groups in July, with further details scheduled to be announced later this month.
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Look up the funds
- Investec Cautious Managed A Acc Net
- Investec Diversified Growth A Inc Net
- Investec Diversified Income A Acc Net
- Investec UK Special Situations I Acc Net
- Investec Enhanced Natural Resources I Acc Net
Look up the fund managers
- Alastair Mundy
- Philip Saunders
- John Stopford
- Bradley George
- George Cheveley
- Peter Eerdmans
- Werner Gey van Pittius