Evenlode Income removes fund research costs

Ben Peters and Hugh Yarrow

Evenlode has removed all investment research costs from its Income fund and backdated the change to the start of the year.

The fund manager follows in the footsteps of Woodford Investment Management, M&G and LGIM, which have all made the same change, which will be compulsory from January 2018 under Mifid II.

In a statement, chief executive Ben Peters says investment research costs will now be paid directly by Evenlode rather than from the fund, reducing overall charges for investors as a result.

“Under the prior model, some of the cost of external research fell outside of the fund’s periodic charge, as the payment was ‘bundled’ in with the cost of trading,” Peters says.

“With the new arrangement, only the costs of executing trades and associated transaction taxes now fall outside of that one charge.”

Peters says Evenlode is working on additional disclosures around trading costs, which he notes is “not zero” even though turnover in the fund is low.