The £127.3m JPMorgan Chinese investment trust has become the latest trust to scrap its performance fee in the face of increasing antipathy towards such charges.
The board of the trust has announced it has renegotiated its fee with JPMorgan to cut out the performance fee of 15 per cent of any outperformance from the trust’s net asset value over its benchmark.
In the past 10 years the trust has beaten its benchmark, the MSCI Golden Dragon by 47.7 percentage points.
The trust will keep its base annual management charge of 1 per cent following the removal of the performance fee, which will take place in September 2015.
Since the RDR many investment trusts have sought to change their fee structure, particularly reducing performance fees, as advisers have tended to be outspoken opponents of such fee structures.
Analysis from Winterflood found that, since the start of 2014, 36 investment trusts had changed their fee arrangements, with many of those scrapping their performance fee.
