The London-based investment manager said the reduction seeks to ensure the fund remains competitive in its sector.

Kames Capital is reducing the annual management charge on the Kames UK Equity Income Fund.

As of 1 November 2016, the AMC will be reduced from 0.75 per cent to 0.60 per cent on the fund’s B share class.

The fund, which was launched in 2009, invests at least 80 per cent in UK equities and aims to achieve a historic yield on the distributable income in excess of 110 per cent of the FTSE All Share yield at the fund's year end. 

Managed by Douglas Scott and Iain Wells, the £36 million ($44.8 million) fund has returned a cumulative 13.7 per cent over the last year, compared to a sector average return of 9.9 per cent, according to Trustnet.

“With the new AMC and its excellent track record over the last five years, which has seen it consistently achieve top quartile performance, there is no reason why this fund should not be at the top of UK equity income investors’ buy-list,” said Steve Kenny, director of wholesale at Kames Capital.

Kames is one of a number of firms to bring down charges in recent weeks. Indeed, a recent survey by Natixis showed the majority of advisors globally feel they will make at least some changes to their business model as a result of new regulations and increased fee pressures. Over the next five years, 14 per cent of fund managers expect charges in their industry to fall dramatically, with a further 60 per cent expecting them to decline slightly, according to research from events agency FIRST.