UK-based asset manager Brooks Macdonald is intending to reduce fee structure of its discretionary fund management service that is expected to cut its headline charge by nearly 30%.
Brooks Macdonald business development director Andrew Denham-Davis told Investment Week that the firm is planning to cut down its prices to 35bps plus VAT on certain platforms.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
"The 50bps figure is where we start. Taking into account economies of scale and platform efficiencies, we would be able to move to at least 40bps plus VAT and, for substantial support [from platforms], this could well come down further to 35bps plus VAT," added Denham-Davis.
The move would be the second time that discretionary fund management provider is restructuring its prices in less than a year.
Earlier in October 2013, it reduced its model portfolio fees to 50bps from 75bps. The products then affected by the price slashes included Defensive Income, Cautious Growth, and Balanced funds.
Denham-Davis, however, stated that reducing the prices below the proposed cut to 35bps would be a challenge with the other regulatory, compliance, and research costs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Other firms may feel they can come down further, and indeed some already do, but we believe cost should not be the only consideration. To maintain the quality of our service requires ongoing investment, and we are committed to maintaining that quality first and foremost," explained Denham-Davis.
