logo

From the Source

T. Rowe Price to lower fees for flagship Global Equity Fund

01 May 2020
From

Darren Hall

T. Rowe Price has announced a lower local fee structure for its flagship Australian Unit Trust (AUT) – Global Equity Fund (I Class), ahead of the local regulatory change to phase out conflicted grandfathered remuneration. Effective on 1 July 2020, the management fee for the T. Rowe Price Global Equity AUT Fund will move from 1.18% p.a. to 0.94% p.a[1].

Darren Hall, Australian Sales Manager at T. Rowe Price, commented, “Putting client interests first is a core value of our firm and a key determinant influencing our decision making. We are very pleased to offer a highly-competitive new fee structure, which assists advisers to meet their ‘best interest duty’ and provides a more attractive entry point to end investor.”

“As the industry transitions away from legacy systems and processes, modern structures are evolving around how to support investors achieve their capital and income needs, and we are pleased to be working well ahead of the Government’s year-end timeline for cleaner remuneration arrangements,” he said.

The A$3.4 billion[2] T. Rowe Price Global Equity Fund, managed by Scott Berg for over eight years, was recently awarded the highest Morningstar Analyst Rating™ of ‘Gold’[3].  A key differentiator for the T. Rowe Price Global Equity Fund is that its 150 stocks are invested across around 30 countries[2], whereas a typical global equity fund usually invests in around 17.

The fund’s new pricing aligns it with other T. Rowe Price local offerings, including the T. Rowe Price Australian Equity Fund (0.60% p.a. I-Class) and T. Rowe Price Dynamic Global Bond Fund (0.40% p.a. I-Class)[1], both of which have been competitively priced for a post Future of Financial Advice (FOFA) and Royal Commission environment.

Fees for the T. Rowe Price Global Equity Fund (Hedged) (I Class) will also be reduced on 1 July 2020, from 1.20% p.a. to 0.99% p.a.[2]

———

[1] For the break-down of the management costs, which may include any indirect costs for the Fund, please refer to the Product Disclosure Statement for the Fund for further details.
[2] As of February 29, 2020
[3] As of March 17, 2020. Morningstar assesses fund managers on the basis of how they are perceived to perform in the future over an economic cycle, against both peers and accepted benchmarks. For detailed information about the Analyst Rating, including its methodology, see www.morningstar.com.

Tags:

Earn CPD Points

  • CPD: A TTR strategy for modern retirement

    We are currently witnessing one of the most significant demographic transformations in Australia’s history. Over the next decade, an estimated 2.5 million Australians are expected to enter retirement[1]. This article, [...]

  • CPD: Trend following in uncertain times

    Trend following strategies aim to generate returns by capturing sustained price movements across a diverse range of asset classes. Unlike traditional investment approaches that rely on valuation or forecasting, trend [...]

  • CPD: Aged care advice and ethics

    Data from the Australian Institute of Health and Welfare (AIHW) shows that Australia’s population aged 65 and over is projected to reach 22% – or 8.8 million people – by [...]

  • CPD: AI governance – a practical framework for advisers

    Regulator scrutiny of AI governance just got serious In years to come, they may well call it the ‘Mythos effect’ – the point in early 2026 where all the concerns [...]

  • CPD: Thinking outside the box – providing a loved one a paycheque for life

    Australia’s great wealth transfer is well underway. An estimated $5.4 trillion is expected to pass from those aged 60 and over to younger generations within the next two decades.[1] In [...]

View more CPD