Thesis goes direct in UK equities to reduce charges

Thesis Asset Management is investing in UK direct securities for the first time in an attempt to reduce costs.

UK stocks will now replace almost all the UK equity unit trusts in its Optima fund range.

This means ongoing charge figures for all share classes will reduce from 1.34 per cent to 1.04 per cent, with the latter being applied to the Optima Balanced fund in the range for its C share class.

Thesis Asset Management model portfolio manager Gaurav Gupta says: “The industry as a whole is facing pressure on cost and it needs to demonstrate that it provides value for money. We want to maintain diversification in our clients’ portfolios and give them the benefit of lower fees at the same time.

“Our strong track record of investing directly in UK equities means we are confident we can bring down the OCF of our Optima funds without compromising performance.”

Thesis holds £12.6bn of funds under management and administration as at 31 December 2016.

In 2015, Rathbones decided to invest directly in large-cap equity in its multi-asset range, rather than accessing the asset class via funds resulting in a fee cut.