Martin Currie has prepared 1% share classes for launch in advance of the retail distribution review (RDR), while Jupiter Asset Management is considering reducing the minimum on its institutional class.
Martin Currie’s “C” share class has been launched in funds prospectus this month but is not yet open to investors. It has a minimum investment of £1,000, the same as the “A” share class, which has a 1.5% annual charge. However, the new share class has a 2% initial charge, whereas the “A” share class has an initial charge of 5%. Some of the firm’s emerging market funds already had a one per cent share class.
Toby Hogbin, the head of product development at Martin Currie, says: “We are making sure we are RDR ready. This makes sense in terms of having a net-of-commission with platform expenses share class. We will launch the share classes when we see market demand from advisers for the share class.”
Meanwhile, Jupiter is considering reducing the £5m minimum on the institutional share classes that it launched last year.
A spokeswoman for Jupiter says: “There are several choices open to asset managers with regard to RDR readiness, including the use of an institutional share class, such as those we launched last year, with a lower minimum subscription. But we would like the see the final rules clarified before making a firm commitment.”