Five sets of funds have had a tiered pricing structure introduced to its fixed annual charge, according to a series of shareholder letters sent to relevant clients.
A tiered pricing structure has been introduced across a raft of funds' fixed annual charges, according to a series of shareholder letters sent to relevant clients.
The Jupiter Merlin Income and Growth Select fund, Jupiter Monthly Alternative Income fund, Jupiter Unit Trust Managers UCITS funds, Merlin Portfolios and Jupiter Investment Management Series I and Series II funds will all see a discount mechanism applied to their fixed annual charges.
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This payment is the overall annual fee paid by the funds to the manager, and covers management and operational costs of the portfolio, a cost Jupiter said it was addressing in its October trading update in order to meet the recommendations of its Assessment of Value report.
The fund will now see the annual fee reduce as a value of the scheme property of the funds from 23 February 2024.
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A discount of 0.02% will be applied to the fixed annual charge of funds with an AUM above £500m, rising to 0.04% for funds over £1.5bn and 0.06% for £3bn and above.
In the letters, Jupiter said it would calculate the aforementioned value — which is the net value of the scheme property after deducting any outstanding borrowings — at the end of each month to determine if a discount is warranted. However, if the value of the fund reduces for three consecutive months the relevant discount will be removed or reduced.
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