Smith & Williamson has reduced charges on a range of funds to offer 'improved value for money'.
The move, prompted by the retail distribution review, will see thirteen pooled funds have lower annual management charges from 1 April.
The typical equity or multi-manager fund fee will be reduced from 75bps to 65bps, and for most fixed interest funds there will be a drop from 65bps to 55bps.
'We recognise that advisers and their clients look carefully at the level of AMC’s as part of the process of assessing the suitability of using a fund', Nick Hodgson, (pictured) partner, head of marketing and sales said.
'Whilst we firmly believe that cost alone should not the key driver, it is nevertheless important, and there is scope for us to offer improved value for money for investors by lowering our fees.'
Three capacity-constrained funds, with are available on most platforms, will not be reduced. They are the Short-Dated Corporate Bond B class at 65bps, MM Cautious Growth B class at 70bps and Enterprise C class at 90bps.