The £552.7m F&C Global Smaller Companies trust has simplified its charging structure by dropping the performance fee and increasing the base management fee.
The base fee will increase from 0.4 per cent to 0.55 per cent for individual company holdings, and from 0.25 per cent to 0.275 per cent on collective investments, making the ongoing charges ratio 0.85 per cent.
The board removed the performance fee in order to simplify the fee structure, as well as make the fund more competitive against open-ended funds and other global small cap investment companies, according to Numis Securities.
The company included the revised fee structure, which took effect on 1 May 2016, in its annual report that showed a NAV total return of 3.5 per cent, ahead of the benchmark return of 1.3 per cent, and a share price total return of 3.2 per cent.
The F&C Global Smaller Companies trust has returned 35.2 per cent over three years, according to FE Analytics, and is currently trading at a 0.4 per cent premium, according to the Association of Investment Companies.
