Legal & General Investment Management is changing the way charges are applied to its retail funds, moving to a single fund management fee (FMF) to avoid "confusion" over multiple figures.
LGIM has announced it will end use of the annual management charge (AMC) in favour of the more comprehensive FMF, which incorporates adminstrative charges. The fund house said it is making the change, effective today, in order to eliminate "confusing" separate charges. The FMF is equivalent to the ongoing charges figure (OCF) now used more widely across the fund industry, and which is currently used within LGIM funds' key investor information documents. The use of the less common 'fund management fee' term aligns LGIM with Invesco Perpetual, which began using the same phrase to ou...
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