Two more investment trusts, managed by Schroders and Montanaro Asset Management, have cut their fees in a bid to remain competitive with open-ended fund charges.
Schroders has cut its fee for managing the £183.2m Schroder Japan Growth trust to 0.75 per cent for the first £200m of assets and then 0.65 per cent for assets above that level. It previously charged 1 per cent for the first £150m and 0.95 per cent thereafter.
The board of the trust - which is managed by Andrew Rose - said the move would reduce Schroders’ fee by £450,000 per year.
Meanwhile the board of the £118.8m Montanaro European Smaller Companies Trust has negotiated with Montanaro to reduce its annual fee from 1 per cent to 0.9 per cent.
The trust, managed by George Cooke, has also had its 15 per cent performance fee removed.
The changes to the trusts’ fees are the latest in a string of fee cuts from investment trusts in the wake of the RDR in an attempt to compete with open-ended funds on price following the banning of trail commission.
