Global asset management firm Legg Mason has announced its post Retail Distribution Review (RDR) Sunset Clause share class strategy.
Legg Mason Investment Funds says that it will be reducing the annual management charge (AMC) for Class A shares, which are available to retail and institutional investors. The changes come into effect from 1st April, 2016.
The AMC for fixed income funds will be reduced by between 0.40% and 0.45% for Class A shares, depending on the sub-fund. The initial charge for subscriptions will no longer apply.
The AMC for equity funds will be reduced by 0.50% for Class A shares. The initial charge for subscriptions will no longer apply.
Head of Sales at Legg Mason Adam Gent (pictured above) said: “With the advent of the RDR sunset clause, we have taken the decision to review fees because we believe that it is the best thing to do for our clients. With the considerable reduction in our fee levels, it will provide a more competitive fee structure for our clients. Our aim is to make sure that investors continue to receive value for money from our UK based fund range.”
Legg Mason has $671.5 billion in assets under management.