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Mutual fund: Cost reduction management fees

This week I got a letter from my bank. It said that my bank made a better deal with one of the mutual funds I invest in on a monthly basis, Kempen Global High Dividend fund.

Exclusively for customers of my bank they negotiated a cost reduction of 0.15% from 0.78% to 0.63% in management fees. According to the letter I will notice this by a higher appreciating value of the fund. This is because the management fee is withdrawn from the fund value.

The mutual fund will get it's own ISIN number because it's course will differ from the original fund in the future whil all mangement decissions of the fund will be the same.

I think this is partly because of the much lower management fees tha ETFs charge for their products.

Have you ever have had management fees changed in mutual funds or ETFs?

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  1. I have not experienced such thing with my bank however I have heard that some banks are making changes in their fees and policies so may be your bank is one of them.

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