A boutique funds management group is reducing the management fees on one of its signature funds.
Premium China Funds Management is dropping the management fee on its Premium Asia Fund by 45 basis points. This will sit alongside the removal of the performance fee, the firm said.
The reduced fees will kick in on 1 July 2019 in what Premium China calls a significant step, given the Premium Asia Fund is its mainstream offering with strong, consistent performance.
The fund, which invests in Asia ex-Japan and launched in 2009, has achieved an average annual return of 11.1% net of fees as at February 2019. The investment manager of the fund is Value Partners Hong Kong.
Premium China executive director and chief investment specialist Jonathan Wu said the fund manager recognises that despite the positives of Asia as an investment destination, most Australian portfolios remain under-exposed.
"We regard our decision to reduce the management fee and remove the performance fee as signalling our commitment. The Premium Asia Fund has considerable potential and the capacity to build beyond $1 billion," he said.
"We believe this measure reflects the current reality and will therefore be favourably received by advisers, investors and analysts."