For all administrative costs, savings that result from increased scale are automatically reflected in lower charges to investors.
As part of this criteria, we also examined whether investors are accessing our funds in the right way. Each fund has different classes of shares or units (depending on whether the fund is structured as an open-ended investment company (OEIC) or unit trust.
These classes can use different currencies, have different minimum investment levels, and may feature different fees. Which you buy often depends on your investor type (retail or institutional) and investment objective (such as income or income reinvested).
Our findings
BNY Mellon Fund Managers Ltd carries out regular service reviews and often renegotiates its fees with various counterparts. Over the year ending 31 March 2021, this was no different and in this time frame, all six funds feature a tiered asset servicing pricing structure. This means each can pass on savings achieved through growth in asset size, if and when it is possible to do so.
Through the review period, one of the funds analysed did grow to a level that could realise greater economies of scale. This was the new BNY Mellon (River and Mercantile) Global Equity Fund, which reached significant scale quickly. At its current size, the fund benefits from the