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15th June 2015

Rathbone reduces annual management charge on Strategic Growth Portfolio fund

Rathbone Unit Trust Management has reduced the annual management charge of the Elite Rated Strategic Growth Portfolio from 0.75% to 0.5%.

In addition, the ongoing charge of the fund (OCF) will decrease further by a change to the way administration fees are paid. Instead of paying these costs through the fund, the charge will be met by Rathbone Unit Trust Management, reducing the OCF by approximately 0.11%.

This means investors will be saving 0.36% or, in monetary terms, almost £55 per annum if the current maximum ISA allowance is held in the fund.

The changes to fees will take effect from 1st August 2015.

At the same time, the company has announced they will be launching a new fund, Strategic Income Portfolio, subject to FCA approval.

The new fund will aim to deliver a minimum nominal gross yield of 3%, paid monthly, within a targeted total return of CPI +3% to 5% over a five to seven-year investment horizon. Its asset allocation and risk rating will mirror that of the Elite Rated Strategic Growth Portfolio, with the additional remit of seeking holdings that can produce a regular income stream and retain their real capital value.

Subject to FCA approval, there will be a fixed-price launch of the fund opening on 16th September 2015 and closing on 1st October 2015.

Mike Webb, chief executive officer, Rathbone Unit Trust Management, said: “The Rathbone Strategic Income Portfolio is a logical extension to our existing range of single and multi-asset strategies, and builds specifically on the success of the Elite Rated Rathbone Strategic Growth Portfolio. It meets the ongoing demand for income in an environment of low economic growth and low interest rates, where many investors are forced to drawdown capital to maintain their lifestyles.”


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