Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

City of London trust axes performance fee

City of London trust axes performance fee

The City of London investment trust has overhauled its charging structure, removing its performance fee in a bid to broaden its appeal.

The trust will now carry an annual management fee of 0.365%, reducing to 0.35% on the balance of net assets above £1 billion. The board believes the changes to its pricing will make the £1.01 billion trust more competitive against open-ended funds with clean or super-clean charges.

City of London previously levied a performance fee if it outperformed its benchmark by 15% or more over a rolling three year period, capped to a maximum management fee of 0.65% of net assets.

The trust, managed by Henderson Global Investors' Job Curtis (pictured), is up 21.9% over one year in share price terms compared to a 16.6% rise in the FTSE 100 and it is currently trading on a premium to net asset value of 2.7%. The trust has grown its dividend for 46 consecutive years and is currently yielding 3.9%.

The move follows a similar management fee revamp of Bankers Investment Trust, which is run by Henderson's Alex Crooke.

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 Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter