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.

Invesco lowers fees on Barnett trust & more cuts tipped to come

Invesco lowers fees on Barnett trust & more cuts tipped to come

The annual management fee on the £283 million Keystone Investment Trust, run by Mark Barnett, has been reduced.

The charge has fallen from 0.8% of the trust’s market capitalisation to 0.6%, although hurdle rate for the 15% performance fee has also dropped from 2% to 1.25% above the FTSE All Share index per annum over a rolling three-year period.

Under Citywire AA-rated Barnett (pictured), Keystone has returned 60% over the past three years compared with 28% from the FTSE All Share index.

According to the Association of Investment Companies, 20 trusts have reduced their ongoing charges so far this year while seven have removed their performance fees.

Ewan Lovett-Turner, an analyst at Numis, argued that another of Barnett’s trusts could be the next to bring down its charges.

‘We believe that Perpetual Income & Growth is likely to face pressure to reduce its fees given the lower level of its stable mates,’ he said.

The £1 billion Perpetual Income & Growth currently charges 0.75% of gross assets plus a 10% performance fee.

‘Reflecting this, the board has previously stated that it is mindful of developments in the investment trust sector and the wider investment market and is in ongoing discussions over fees with the manager,’ noted Lovett-Turner.

Over the past three years Perpetual Income & Growth has returned 59%.

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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter