T. Rowe Price has lowered the fee structure for its flagship Australian Unit Trust – Global Equity fund from 1.18% per annum to 0.94% per annum, effective from 1 July 2020, to phase out conflicted grandfathered remuneration.
The new fees would be better aligned with other T. Rowe Price local offerings, including the T.Rowe Price Australian Unit Trust Global Equity Fund (0.60% per annum) and T.Rowe Price Dynamic Global Bond Fund (0.40% per annum).
According to T.Rowe Price’s Australian sales manager, Darren Hall, the new fee structure would provide a more attractive entry point to end investor.
“Putting client interests first is a core value of our firm and a key determinant influencing our decision making.
“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, an we are pleased to be working well ahead of the Government’s year-end timeline for cleaner remuneration arrangements.”
Fees on the fund’s hedged share class would also be reduced from 1.20% per annum to 0.99% from the same date.
Performance of T.Rowe Price Global Equity fund versus its MSCI ACWI benchmark over one year to 29 April, 2020
