Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Products September 3, 2020
Investment Product and Service Launches
Transamerica announces management fee reductions and J.P. Morgan AM reduces fees in two series.
Reported by Amanda Umpierrez
Art by Jackson Epstein
Transamerica Announces Management Fee Reductions
Transamerica has reduced management fees on 26 share classes for mutual funds and variable annuity funds.
Contingent upon share class, these reductions total 259 basis points (bps) annually and range from as much as 20 bps to 2 bps per share class. The cumulative impact is on approximately $4.98 billion in combined assets as of June 30.
Transamerica said in a statement that these fee reductions are part of its commitment to seek maximum value for investors. This action is the second set of management fee reductions this year for Transamerica mutual funds and variable annuity funds.
“We’re pleased to offer these lower fee structures as they allow investors to enhance their long-term investment goals,” says Tom Wald, chief investment officer (CIO) for Transamerica Asset Management. “By putting more of their money to work, these fee reductions can help fund shareholders better plan for the future.”
“Combining industry-leading portfolio management with lower fund fees is a core value proposition we look to provide,” Wald notes.
J.P. Morgan AM Reduces Fees in Two Series
J.P. Morgan Asset Management has announced fee reductions across the JPMorgan SmartRetirement Blend Series and retirement income offering SmartSpending.
The SmartRetirement Blend Series combines active and passive strategies in an all-in-one diversified investment. The SmartRetirement Blend series is one of two target-date fund (TDF) series with a Gold Morningstar Analyst Rating.
“We are committed to passing on lower fees to clients as we continue to achieve scale across the SmartRetirement Blend Fund Series, which already has lower expense ratios than 88% of peers. These fee reductions mean clients now have the opportunity to outperform passive indices through exposure to active management, at the price point of a passive-only strategy,” says Jed Laskowitz, global head of asset management solutions at J.P. Morgan Asset Management. “We are also pleased to reduce fees across our innovative SmartSpending strategy, designed to help investors manage income in retirement and provide spending flexibility as needs change.”
The investment advisory fees will be reduced November 1.