Pendal Group has made year-long fee cuts on two funds, as it sees the Reserve Bank of Australia holding the cash rate at the record-low of 0.25%.
The Pendal Managed Cash Fund will go from charging 22bps per year to 12bps, while the Pendal Stable Cash Plus Fund will reduce from 25bps per year to 18bps.
The fee changes came into effect on July 1 and run for 12 months.
"Over this period, the fund's issuer fee will be reviewed and any changes will be communicated to investors prior to 1 July 2021," Pendal said.
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The $3 billion Pendal Managed Cash Fund has been running since 1986 and invests in short-term money market securities issued by banks, corporations and similar local issuers.
The Pendal Stable Cash Plus Fund has about $1.8 billion in assets and invests in combination of money market instruments, commercial paper, asset backed commercial paper and deposits with financial institutions.
Since inception, it has returned 2.16% per annum after fees compared to its benchmark RBA cash rate's 1.52% annualised.
So far this year, Schroders, Mirae and State Street have made fee cuts to their local funds.