Cavendish Asset Management is cutting the fees across its fund range following the merger of seven portfolios and the closure of the A share classes.
Paul Mumford’s TM Cavendish Opportunities and TM Cavendish AIM funds – which are not among the funds to be merged – will be subject to the changes as well as the £54m UK Balanced Income fund, with the holdings from the A share classes transferred to the B share classes.
The TM Cavendish Worldwide fund, which is being merged with six other funds and renamed as the TM Cavendish International fund – subject to shareholder approval – will also be affected.
Subsequently the annual management charge for the £149m Opportunities fund, the £62m AIM fund and the TM Cavendish International fund will be reduced from 0.75 per cent to 0.6 per cent with the ongoing charge lowered to reflect the move.
The AMC for the Balanced Income fund – run by CIO Julian Lewis – will remain at 0.5 per cent.
Cavendish says the A shares are now redundant now that rebates have stopped. The changes will kick in on 15 September.
A spokesperson for Cavendish says: “With the new fund structure Cavendish anticipates reducing its operating cost overall along with ceasing all rebate arrangements. It is therefore passing on this reduced operating cost to shareholders by way of a reduced AMC, resulting also in reduced ongoing charges.”