BT slashes fees on 52 funds

By Liam Egan

BT Financial Group has cut total ongoing fees on 52 of its wholesale and institutional investment funds by an average 17 per cent, with some cuts as high as 32 per cent.

The reductions cover over two-thirds of BT’s wholesale and institutional investment fund offerings, including its flagship Australian and international share funds.

BT says the reductions, which are effective from July 1, will deliver cost savings to more than 58,000 retail and institutional investors who access the 52 funds directly or through its wrap platforms and master trusts.

The group is anticipating greater investment inflows from the more competitive fund pricing levels and simplified fee structure, according to Jason Yetton, head of customer solutions.

“An average BT Wrap investor with $37,000 in BT’s flagship Australian Shares Fund will, for example, see their total ongoing fee reduce by 24 per cent from July 1 — a saving of $92.50 a year,” he said.

Yetton said the reductions had been made possible by strong investment performance and cost savings resulting from the integration of BT with the Westpac Bank.

“The big thing from our point of view is that the reductions are targeted at wraps and master trusts, where the vast majority of advisers and investors invest their money,” he said, adding the reductions would not impact on adviser commissions.