Chinese mutual fund managers cut fees to reduce costs to investors as regulator eyes reforming fee-charging practice

 

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A number of major mutual fund managers in China cut fees as the regulator eyes reforming fee practices in the industry to reduce costs to investors.

The money managers, including China Asset Management Co and Bank of Communications Schroder Fund Management Co, said in separate statements that management fees in certain equity-focused products would be cut to 1.2% of fund assets, from 1.5% previously. The custodian fee would be reduced to 0.2% of assets from 0.25%.

The cuts were “aimed at lowering investors’ costs in managing their wealth”, they said in statements.

The China Securities Regulatory Commission (CSRC) said it had drafted reform plans after listening to opinions from market participants, and would optimise mutual funds’ fee-charging model and steadily lower the industry’s fee rates. Fund management fees would be capped at 1.2% of assets and custodian fees at 0.2%, state media reported.