James Anderson’s Scottish Mortgage trust cuts fees

The board of the Scottish Mortgage investment trust is to reduce its management fee from 0.32 per cent to 0.3 per cent.

The decision comes as the global equity trust - managed by Baillie Gifford’s James Anderson and Tom Slater - recently crossed £3bn in assets under management. Last year Scottish Mortgage briefly overtook Alliance Trust to become the UK’s biggest trust by assets, but Alliance Trust has since regained its crown.

The fee cut takes effect from April 1. Trust chairman John Scott said more fee cuts “would be considered if assets continue to grow”.

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“[We] are keenly aware that low charges have a major impact on long term returns especially when compounding is taken into account,” Mr Scott said.

“Scottish Mortgage has grown steadily over the years and it is fortunate that its scale with total assets of around £3bn allows this reduction to be made.

“The board considers that the combination of a low fee and a long term global approach makes for a compelling investment proposition.”