Standard Life Investments is the latest to bow to the pressure to slash fees and will reduce the annual management charge on a number of its share classes next month.
From 1 November new and existing investors in the MyFolio Market range will see a reduction in AMC between 0.15 per cent and 0.325 percentage points - depending on the share class they are invested in.
Investors in the MyFolio Managed and Multi-Manager funds will also see a reduction of 0.175 percentage points if it was purchased through third party platforms in the UK.
Iain McLeod, investment specialist of MyFolio at Aberdeen Standard Investments, said: “We regularly review our funds in order to ensure that we are always acting in the best interests of our investors.
"As a result of our latest review, we concluded that an adjustment should be made to the pricing structure of our MyFolio range of funds.
"This change further enhances our market-leading proposition for investors in the risk-based fund of funds market.
“Through MyFolio, we aim to strike the balance between the risk an investor is willing to take and the potential rewards they receive in return.
"Since its launch in September 2010, investors have enjoyed returns which have been, without exception, in line with their chosen level of risk.
"This consistently strong performance over the last seven years has made MyFolio an enormously successful solution in the post Retail Distribution Review era and we thank advisers and investors alike for their continued support.”
AJ Somal, financial planner at Birmingham-based Aurora Financial Planning, said the reduction in AMC will make the funds a more attractive proposition for his clients.
He said: “This is good news for clients, and makes the funds more appealing for clients. This confirms the general trend of pressures of fund investment houses to reduce their charges in the face of competition from the likes of Vanguard.”
A merger between Standard Life and Aberdeen Asset Management was given regulatory approval back in July.
The merger, which was announced in March, has created a company with £660bn in assets under management.
Eight hundred jobs are expected to go following the deal, which will see the merged entity remain headquartered in Scotland.
