Royal London Asset Management (RLAM) will move to a single, fixed fund management fee, titled the ‘Fund Management Fee’ (FMF), with effect from 3 June 2019.
The new FMF will be clearer and simpler for customers to understand. The existing Ongoing Charges Figure (OCF) may vary on a month to month basis due to variation in the actual costs of running the funds. The FMF, however, will be a set figure and will be shown on factsheets and other materials going forward.
This change will apply to Royal London Unit Trust Managers (RLUTM) multi-asset, equity and bond funds. Transaction costs will continue to be disclosed separately.
RLAM aim to provide value for money to customers through high quality products at very competitive prices. A key consideration of the product development process is ensuring that RLAM’s products remain competitively priced and they are reviewed annually as part of the Fund Governance process.
The new FMF rates have been set taking asset size and future expectations of costs into account. Most funds will see a slight increase in fees, however the funds remain amongst the lowest priced within their sectors.
Rob Williams, chief distribution officer, commented:
“Our customers want a better understanding of the cost of managing their funds, and the new fixed Fund Management Fee does that - it provides them with both clarity and certainty. We will continue to monitor the fee levels to ensure our funds remain competitively priced while still providing excellent value for money.”
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Notes to editors:
Download the full press release in PDF format to view detailed fee information.
For further information please contact:
Kimberley Robinson, Corporate PR manager
kimberley.robinson@royallondon.com
02032 725 125
07919 171 953
Lucy Field, Press officer
lucy.field@royallondon.com
02032 725432
07919 170647
About Royal London Asset Management
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector. RLAM manages £114 billion of assets and employs 92 investment professionals as at end December 2018. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued March 2019 by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.