The Bankers investment trust has cut its performance fee and moved to a fixed charge, making it one of the lowest-cost funds in the global growth sector.
The move to streamline and lower the fees, which reduces the total cost from a possible 0.85% a year to 0.4%, has been made in response to the retail distribution review’s aim of making charges more transparent.
The trust previously had a fee arrangement of 0.3% of gross assets a year, plus a performance fee. It received an additional 0.15% for the first 1% of outperformance in excess of a 1.5% annualised hurdle rate, rising to 0.2% for each additional 1% of outperformance, up to a maximum fee of 0.55% of gross assets, in any one year.
This meant the total fee payable in any year was up to 0.85% of average gross assets.
The trust revealed the move in its annual results, announced last week.
However, the trust said the fee is expected to move up to 0.45% on 1 November this year, subject to review.
The board added: ‘This fee remains one of the lowest in the global growth sector, and indeed amongst all investment trusts.’
The trust, which will be 125 years old in April, is up 40.4% over three years in share price terms, compared to a sector average rise of 30.8%. It is currently trading on a 5.3% discount to net asset value.