Investors in the now closed Aegon Property Income fund saw their costs rise by more than 50% over the course of the fund’s suspension, despite a reduction in the management fee.
On 1 November 2020, the fund discounted the annual management charge by 15 basis points, bringing that portion of costs down to 0.6% for the duration of the fund's suspension. However, according to the fund's annual report published last week (30 September), this discount did little to negate the rise in the property expense ratio (PER), which more than doubled from 31 March 2020 to 31 March 2021. Suspended property funds collect £40m in management fees over 2020 While the ongoing charges figure for the fund fell from 0.85% to 0.7% over the period, the PER rose from 0.98% to 2.15%,...
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