Fund groups eye 0% share classes as alternative to 'super clean'

Some of the UK's largest fund houses are considering launching retail share classes with a 0% AMC rather than provide platforms with ‘super clean' alternatives.

The move would pave the way for confidential fee arrangements more commonly seen in the institutional space. Sources close to the situation have told Investment Week asset managers are looking at ways to keep costs under control and avoid the confusion caused by running a series of lower-cost share classes for different platforms. A 0% share class would introduce an institutional-style pricing arrangement across the retail market. Instead of collecting a share of the AMC, fund groups would invoice distributors such as platforms using investment management agreements, having pre-agr...