Boutique fund manager K2 Asset Management has announced reductions to the investment management fees and performance fees for three of its funds.
K2 Asset Management has announced reductions to the fees for the K2 Australian Fund, the K2 Select International Fund and the K2 Australian Small Cap Fund.
The changes will be effective from the issue of new product disclosure statements on 3 July 2017.
The investment management fee for the K2 Australian Fund will be reduced by 23 basis points from 1.54 per cent per annum to 1.31 per cent. The fund's performance fee will be cut from 20.5 per cent to 15.38 per cent.
The K2 Select International Fund will see its investment management fee fall from 1.54 per cent to 1.36 per cent, and its performance fee will also be cut from 20.5 per cent to 15.38 per cent.
Finally, the K2 Australian Small Cap Fund has had its investment management fee cut by 74 basis points from 2.05 per cent to 1.31 per cent. Its performance fee has been reduced in line with the other funds from 20.5 per cent to 15.38 per cent.
In addition, the performance fee hurdles for the K2 Select International Fund and the K2 Australian Small Cap Fund have been increased to 6 per cent.
In a statement on the ASX, the fund manager said the changes would "better place K2 to be more competitive in a number of new distribution channels, with the aim to grow funds under management".
"Our new distribution and pricing strategy aims to position K2 as a primary investment choice – not only among specialist fund managers but also as an alternative to mainstream fund management brands," said the statement.
K2 said 2018 financial year revenue may be impacted by the new fee structure.
"Management fee revenue will continue to be aligned with funds under management and performance fee revenue with the performance returns of the K2 funds," said the statement.