London-based Kames Capital is reducing its annual management charge (AMC) on the firm’s Diversified Income Fund in a move that is meant to make the fund more attractive to pension savers in the UK.
Coming into effect from November 1, 2015, the AMC will be cut by 10 basis points to 0.55% on the fund’s ‘B’ share class.
The fund, run by Vincent McEntegart, is aimed at both institutional and retail investors looking for both income as well as the potential for capital growth over the medium term.
It has a current yield of 5.7%, having launched in February 2014, with a return over one year of 5.43%.
The move is in line within the market towards clean share classes and also follows feedback from investors.
“‘With the recent changes announced by the Government capping fees on pension pots to 0.75% from April this year we believe this move makes the fund extremely attractive to pension investors or anyone seeking an attractive income,” says Steve Kenny, director of wholesale business at the firm.
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