Invesco Perpetual has agreed to cut the fee it receives for managing the £134m Select Trust, which is run by four managers including Mark Barnett and Nick Mustoe.
The trust offers the choice between four share classes, each of which has its own separate portfolio of assets. Mr Barnett runs a UK equities portfolio, Mr Mustoe a global equity income portfolio, Stuart Edwards a UK fixed income portfolio and Scott Wolle a multi-asset portfolio.
The trust’s board said this morning Invesco had agreed to a reduction in the management fees it gets from 0.75 per cent to 0.65 per cent per annum.
The performance fee payable on the UK equity and global equity income portfolios has also been reduced from 0.75 per cent to 0.65 per cent.
The fee change took effect from June 1 but was announced on the stockmarket today.
In January 2013, the trust adopted a zero discount policy. At the time, the board announced it would “offer to issue or buy back shares of all classes with a view to maintaining the middle market price of the shares at close to their respective net asset values”.
The trust said the move should give shareholders confidence that “underlying investment performance will be reflected in the company’s share prices and that there is continuous liquidity in the shares” but warned that the policy could lead to a reduction in the size of assets under management.
At the time, the trust was £107m but has in fact risen to £134m
The share price has risen 162.1 per cent in the five years to July 31 compared to a rise of 80.7 per cent by the FTSE All Share index, according to the Select Trust factsheet.
