The £2 billion Templeton Emerging Markets investment trust has become the latest closed-ended fund to lower its fees.
From 1 July 2014, the trust’s management charge will drop from 1.2% to 1.1%.
‘We will continue to monitor any further developments in the market as regards both structure and quantum of charges, but believe that this lower level of management fee, together with the liquidity of the company’s shares and the relatively stable discount, maintains the overall attractiveness of Templeton Emerging Markets as an emerging markets investment,’ the trust’s board stated.
Managed by Mark Mobius (pictured), the trust has lost 7.7% on a net asset value basis over the past three years compared with the MSCI Emerging Markets index’s 2.9% decline through the same period.
On a five-year view, though, the trust is ahead of the index with a return of 56% versus its 50.6%.