Global equity fund to charge passive fee for active management

Calculating feesDalton Strategic Partnership, a fund management firm set up by two former Merrill Lynch Investment Management colleagues in

2002, is to “offer high alpha returns at passive fees” for its global equity fund.

The Melchior Global Equity Fund, a UK open-ended investment company (Oeic) launched in 2010, is now charging an investment management fee of 0.25% per annum, which the firm says is significantly below the industry norm of 0.75% to 1.5% for active funds. Dalton’s original fee for the fund was 0.75%.

Dalton says the Melchoir fund is the first high performance, actively managed fund available to all investors at a permanent price normally reserved for passive funds.

The total expense ratio will be capped at 40 basis points. Data on the Morningstar website shows the total expense ratio was 1.33%. The fund size is also given as £5.28 million (€6.37 million), at November 29, 2013.

The fund has delivered top decile performance since launch in August 2010, ranking 10th out of 153 funds in the IMA Global peer group, according to Morningstar figures supplied by Dalton.

It has achieved a net return of 56.16% against the MSCI All Countries World Index return of 39.97%.

All Dalton’s funds are branded as Melchior. The Melchior Global Equity Fund team is led by Nick Mottram, former global head of research at Schroder Investment Management and head of equities at Investec Asset Management.

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