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Coronation announced fee reductions on several of their offshore domiciled funds and feeder funds. Their ultimate goal is to reduce, simplify and standardise their fee structures over time. The latest changes complement an earlier announcement of fee reductions and benchmark standardisation on their local multi-asset funds (read our commentary here) and removal of performance fees on their global income and multi-asset funds in 2015 (read our commentary here).
The new fee structure looks like this:
| Retail A-Class | Platform P-Class | |||||||||
| Multi-Asset | Rating | Type | From | To | Change | Vat Charged | From | To | Change | Vat Charged |
| Coronation Global Capital Plus | Tier 2 | Fixed | 1.50% | 1.25% | -0.25% | No | 1.00% | 0.85% | -0.15% | No |
| Coronation Global Capital Plus Feeder | Tier 2 | Fixed | 1.50% | 1.25% | -0.25% | On 0.4%* | 1.00% | 0.85% | -0.15% | No |
| Coronation Global Managed | Tier 2 | Fixed | 1.50% | 1.25% | -0.25% | No | 1.00% | 0.85% | -0.15% | No |
| Coronation Global Managed Feeder | Tier 2 | Fixed | 1.50% | 1.25% | -0.25% | On 0.4%* | 1.00% | 0.85% | -0.15% | No |
| Coronation Global Opportunities Equity** | Tier 2 | Fixed | 1.35% | 0.85% | -0.50% | No | 0.85% | 0.45% | -0.40% | No |
| Coronation Global Opportunities Equity Feeder** | Tier 2 | Fixed | 1.35% | 0.85% | -0.50% | On 0.4%* | 0.85% | 0.45% | -0.40% | No |
| Coronation Global Equity Select | Tier 2 | PF*** | 1.25% | 1.05% | -0.20% | No | 0.75% | 0.65% | -0.10% | No |
| Coronation Global Equity Select Feeder | Tier 2 | PF*** | 1.25% | 1.05% | -0.20% | On 0.4% | 0.75% | 0.65% | -0.10% | No |
* Vat is only charged on the 0.4% feeder fund fee, not on the underlying offshore domiciled fee.
** This is a fund of funds, so the fee includes Coronation’s multi-manager fee only, the underlying fund fees are charged separately
*** Performance fees are charged
Besides the base fee reductions, they will also be implementing the following:
- The admin rebate applied to the retail A-class on platforms (i.e. difference in retail and clean fees) has been reduced from 0.5% to 0.4% to bring it in line with the rebate on the local funds. Consequently, retail fees will actually be reduced by 0.1% more than clean P-class fees.
- Currently, the base fee on Global Capital Plus is discounted by 0.65% if the fund’s performance is negative over any 24-month period. To standardise the methodology with their other multi-asset funds this discount will be phased out by October 2018.
The changes will become effective in January 2018, subject to regulatory approval.
It is positive to see Coronation reducing their fees to be more competitive and to move closer to fees charged by other offshore managers.
Coronation Offshore Fee Changes
13 Dec 2017