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SLI hikes annual fees on nine funds
Markets
by Sarah Miloudi on Jul 07, 2011 at 11:33
Standard Life Investments (SLI) is raising its annual management charge on nine of its funds, including the well-followed SLI UK Smaller Companies fund managed by A-rated Harry Nimmo.
SLI plans to contact its investors following a review of its charges, which will see the annual management fee on the £1.1 billion UK Smaller Companies vehicle lifted from 1.50% to 1.60% for retail investors and from 0.75% to 0.80% for its institutional clients.
The asset manager's Global Index-linked Bond , UK Gilt, Corporate Bond, Select Income and Higher Income funds will also have their annual fees raised from 0.95% to 1.00% from the beginning of November.
Retail investors in the £16.8 million SLI Global Equity Unconstrained fund, managed by Mikhail Zverev, will see the annual management charge raised 0.10% to 1.60%, while institutional investors will no longer be able to access the fund at a fee of 0.75%.
Like the other SLI products reviewed, institutional buyers of the fund will from November be asked to pay an increased annual management fee of 0.80%, up from 0.75%.
According to documents seen by Wealth Manager, Jacqueline Kerr (pictured), SLI's head of UK wholesale, believes the increased fee structure will allow SLI to remain competitive with its peers.
'At Standard Life we conduct regular reviews of our products to ensure our fund charges remain competitive with the market. As a result of a recent review, the annual management charge of a number of our funds will be increasing with effect from 1 November 2011. We will be writing to investors in the relevant funds on 11 July 2011 to notify them of the change,' Kerr said.
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3 comments so far. Why not have your say?
Anonymous 1 needed this 'off the record'
Jul 07, 2011 at 12:01
I got that email this morning- essentially, it reads in order to ensure our charges remain competitive, we're increasing them.
Funny way to run a business if you ask me.
report thisDavid Johnstone
Jul 07, 2011 at 14:26
I just received a telephone call from Standard Life Investments. They are closing the UK Smaller Companies Fund! At £1.2BN Harry Nimmo wishes to 'soft close' it as it is getting too larg to enable him to run it as he wishes.
So - reduce the flow of new money in, run the risk of redemptions, reduce scope to purchase investment opportunities from cash without disinvesting...and at the same time take this as an opportunity to sting the investors and put our charges up!
Attrocious way to behave...too many accountants at Standard Life me thinks.
report thisAnonymous 2 needed this 'off the record'
Jul 07, 2011 at 16:25
As a private client stockbroker,if I made an average of 1.6% per annum on the funds that I manage,I think I would be retiring earlier than anticipated.
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