JPM and Margetts get ready to modify share classes as RDR looms
JPMorgan and Margetts are considering share class modifications in preparation for the retail distribution review (RDR) deadline.
JPMorgan introduced its three-tier charging system three years ago.
Annual management charges (AMC) are 150 basis points for the A share class with a minimum investment of £1,000, 100 basis points for the B share class with a minimum investment of £1m and 75 basis points for the C share class with a minimum investment of £5m.
Under the proposals, JPMorgan plans to lower the minimum investment of the C share class to £1,000. (article continues below)
“We have share classes which will fit with the RDR, but we would reduce the minimum investment on the C shares,” says Mike Parsons, the head of IFA sales at JPMorgan.
“We are waiting for the platform paper on cash rebates to come out before we do anything - we are waiting to see the lie of the land.”
Meanwhile, Margetts Fund Management announced it will launch a share class for its risk-rated range in the next few weeks.
“We will come out with a clean unit class. I’m not sure exactly what the pricing point will be, but it will be about 75 basis points,” says Toby Ricketts, the chief executive officer.
The present AMC for the range is 147.5 basis points.
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