Franklin Templeton cuts charges on UK equity funds

Scissors-Cut-Tailor-Measure-Measurement-700.jpgFranklin Templeton has cut the annual fees on three of its UK equity funds, dropping them to 45 basis points.

The asset manager has cut the charges on the £22m UK Rising Dividends, £179m UK Equity Income and £66m UK Opportunities funds. The primary W share class of the funds will now have an annual management charge of 0.45 per cent, down from the previous cost of 0.75 per cent.

Franklin Templeton says the rate is “market leading”, with the funds picked because they have no capacity constraints.

Alex Brotherston, head of UK retail sales at Franklin Templeton, says: “We continually review the fees of our funds, working closely with our clients to evaluate their requirements. We have responded to the need for active management at a compelling fee by introducing a market leading AMC of 45 basis points on three of our UK equity funds.”

Peter Toogood, investment director at City Financial, says: “We believe that the rising dividend concept will flourish in the post baby boomer world, and that the Franklin UK equity team, led by Colin Morton, is uniquely placed to manage the sensitive balance between generating a long-term growth in the yield on the fund while not overpaying for that growth.”