Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Guinness slashes fee on global income fund to 0.25%

Guinness slashes fee on global income fund to 0.25%

Guinness Asset Management is cutting the management fee on Citywire AA-rated Matthew Page’s Global Equity Income fund to 0.25%.

Company founder Tim Guinness (pictured) said the cut, from a previous minimum charge of 0.75% on its RDR share class and 1.5% on its retail share class, was motivated by the realities of more competitive pricing post-RDR.

The $24.1 million (£15.1 million) Guinness Global Equity Income fund, co-managed by Ian Mortimer, will be available at the discounted rate either to the end of March or until it reaches $150 million. The discount will be made permanent for charity investors, however.

Guinness said the fund, which launched at the end of 2010, had been seeded with internal money but the firm is now looking to attract further assets.

He added that the strategy was nimble in comparison to competitors and has a focus on dividend growth rather than simply targeting high dividend paying companies.

 ‘We are going to a clean fee basis post-RDR on all of our funds and we will price in line with the markets for specialist products,’ said Guinness.

‘This fund is mainstream and I think you have got to recognise that some of our competitors have very large funds and [we have] ETFs as competitors. In my view, you have got to come up with a charging structure that can justify the value that active management can add.’

The founder also pointed out the firm’s advantage as relatively new entrant which allows flexibility on pricing.

‘I am indifferent if I have £150 million at 25 basis points or £50 million at 75 basis points,’ Guinness added.

Since launch, Mortimer and Page have posted an 8.2% return with the fund, while the MSCI World Index rose 4.14% over the same period, according to Lipper. The fund is yielding around 3.5% and is targeting growth of 7%-10% per year. The fund has a total expense ratio of 0.74%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Play Baillie Gifford's Snell bullish on India's prospects following election

Baillie Gifford's Snell bullish on India's prospects following election

Citywire AA-rated manager is seeing good overall growth for the Asia reason but is wary of varying valuations.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter