Coronation to reduce its fees on three funds
Fund manager acts to encourage retirees to ‘move up the risk curve’ as they shun risk despite low returns
Coronation Fund Managers, which oversees about R600bn in assets, is reducing its investment management fees on three of its funds to encourage retirees to either stay invested in multi-asset funds that offer at least some exposure to growth assets like equities, or to lure back those that have opted for low-risk, low-return alternatives.
The Cape Town-based asset manager will permanently cut the investment management fee of its Capital Plus and Balanced Defensive funds to 0.75%, from 0.85% previously, and will introduce a fee holiday on its Strategic Income fund, which will see the investment management fee drop to 0.35% from 0.45% for 12 months. The fee reductions on the three funds, which have combined assets under management (AUM) of R86.37bn, will come into effect on April 1...
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