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.

Ignis cuts fees and dividends on £1bn property trust

Ignis cuts fees and dividends on £1bn property trust

The £1 billion UK Commercial Property Trust, managed by Ignis, has reduced both its fees and its dividends.

The trust’s dividends have been reduced by 30% to 3.68p a year; this would equate to a yield of 4.8%, compared with the present 6.9%.

The fund explained that this would make its distributions more sustainable, taking its dividend cover from 70-80% to more than 100%.

Ignis has also cut its management fee for the trust by 7% to 0.65% of total assets.

‘With the re-positioning of the portfolio carried out during 2013 and following a detailed review of dividend policy, I believe the re-based dividend level from Q1 2014 is a sensible and prudent decision that will set a sustainable base for the future performance of the company, balancing an attractive level of income with a solid total return,’ said Christopher Hill, the trust’s chairman.

Managed by Robert Boag, the trust predicted that it would deliver a total return of 11% for 2014. Over the past three years it has returned 21%, in line with its sector’s average.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

Wealth Manager on Twitter