Standard Life cuts performance fee on Nimmo trust
Performance fee removed and annual charge increased, as UK Smaller Companies trust underperforms over one year.
Harry Nimmo’s Standard Life UK Smaller Companies investment trust has scrapped its performance fee and raised its annual charge instead.
In its annual report, published today, the board of the £170.3m trust said it had raised the annual charge to 0.85 per cent from 0.65 per cent, and removed the 0.6 per cent performance fee. The changes took effect from July 1.
The board said: “The board recognises the importance of the [trust] having a clear and easily understood fee basis to ensure that it remains competitive and fair to shareholders in the post RDR environment.”
Mr Nimmo, Standard Life Investments’ star small cap manager, has led the trust to post a 49.7 per cent increase in its net asset value (NAV) over five years, and a 67.4 per cent increase in its share price over the same period.
However, the fund struggled over the 12 months to June 30, with its NAV falling 7.6 per cent compared to a 4.1 per cent fall in the Numis Smaller Companies index. This led to the trust’s shares trading at a 5.8 per cent discount to NAV on June 30.
Mr Nimmo said: “Following ECB support for the European banking system in November, markets responded strongly into 2012 with a sharp return to risky recovery shares. The [trust] tends to de-emphasise that type of risky investment and, as a result, the NAV was left behind as markets rallied strongly.”