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.

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 Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter