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Invesco lowers fees on Barnett trust & more cuts tipped to come
by Robert St George on Jul 09, 2014 at 11:27
The charge has fallen from 0.8% of the trust’s market capitalisation to 0.6%, although hurdle rate for the 15% performance fee has also dropped from 2% to 1.25% above the FTSE All Share index per annum over a rolling three-year period.
Under Citywire AA-rated Barnett (pictured), Keystone has returned 60% over the past three years compared with 28% from the FTSE All Share index.
According to the Association of Investment Companies, 20 trusts have reduced their ongoing charges so far this year while seven have removed their performance fees.
Ewan Lovett-Turner, an analyst at Numis, argued that another of Barnett’s trusts could be the next to bring down its charges.
‘We believe that Perpetual Income & Growth is likely to face pressure to reduce its fees given the lower level of its stable mates,’ he said.
The £1 billion Perpetual Income & Growth currently charges 0.75% of gross assets plus a 10% performance fee.
‘Reflecting this, the board has previously stated that it is mindful of developments in the investment trust sector and the wider investment market and is in ongoing discussions over fees with the manager,’ noted Lovett-Turner.
Over the past three years Perpetual Income & Growth has returned 59%.
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by James Phillipps on Jul 25, 2014 at 14:49