Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Bankers Trust drops fees to compete post-RDR

Bankers Trust drops fees to compete post-RDR

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Volatility is back, Europe's future & Ethical's key moment

Volatility is back, Europe's future & Ethical's key moment

This week’s episode of Investment Pulse takes a look at European prospects, FTSE volatility and whether public pressure is about to provide a push for ethical investment

Play Volatility spike: How ETFs can soften the blow

Volatility spike: How ETFs can soften the blow

ETFGI’s Deborah Fuhr discusses the role of ETFs in client portfolios during volatile market conditions

Play Winter market warmers, the post QE world and timing the Fed

Winter market warmers, the post QE world and timing the Fed

This week’s episode of Investment Pulse looks at the winding down of quantitative easing, whether to try and time a US Federal Reserve rate rise and if strong seasonal performers can reverse recent market slumps

Wealth Manager on Twitter