Orbis Investments has announced a new fixed fee share class to provide investors with a simpler option.
The new share class will be available on its Global Balanced and Global Cautious UK OEIC Funds from 31 October 2023.
In a move aimed to widen choice for investors, the new fixed fee share class will have an OCF of 1.2% per annum. Orbis’ refundable performance fee share class will remain available across all of Orbis’ UK OEIC funds.
Marcel Bradshaw, head of UK retail at Orbis Investments, said its new offering was driven by customer feedback.
“We appreciate that some investors simply prefer the certainty of a fixed, percentage-based fee. A number of firms interested in Orbis have indicated that our current fee structure has created a barrier to them investing with us, due to perceived complexity and the unpredictability of future charges. The new fixed fee will provide clients with a more familiar option.”
Dan Brocklebank, head of Orbis Investments in the UK, added: “We believe that our existing, refundable performance fee structure provides a uniquely well aligned proposition for clients: our ongoing charges are 0% and clients only pay fees if we are adding value.
“Moreover, any fees charged are not paid to us directly but are held in a reserve so that they can be refunded in the event we subsequently underperform. However, we have always said that there is no such thing as a perfect fee structure and we recognise that others may value factors such as the predictability and stability of fee levels more highly than we would.”
Brocklebank said Orbis did not want its fee structure to be a barrier that prevents clients from investing with the firm, particularly given the need of many investors for true diversification due to the changing investment environment.
“As a result, we are pleased to be able to provide advisers and clients with this extra option,” he added.
