Kames Capital bond fund fee cut a 'sign of things to come'

UK and Dublin-domiciled funds lowered by up to 30bps

Industry commentators are calling Kames Capital's decision to cut its bond fund fees a "sign of things to come" for fixed income funds which are still deemed expensive, with the rise in popularity of bond ETFs adding to the pricing pressure.

Earlier this week, Kames announced it was reducing the fees across its fixed income range in a bid to "remain competitive and provide investors with value for money". Nine of the firm's UK and Dublin-domiciled bond funds will see their fees lowered by up to 30 basis points in the move, which takes effect from 1 January 2020. While Kames' announcement was welcomed by the industry, some fund selectors said the fees could have been reduced further. Ben Yearsley, investment consultant at Fairview Investing, said the new bond fund fees were not yet at the right level but "they are getti...