The chairman of the Ballie Gifford-managed trust, said the decision to reduce the AMC to 0.3 per cent from 0.32 per cent from 1 April 2014 should improve long term returns for investors.
He said: “Both the board and managers are keenly aware that low charges have a major effect on long-term returns especially when compounding is taken into account.
“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.”
Mr Scott confirmed that further reductions to the AMC would be considered if assets continued to grow.
He added: “The board considers that the combination of a low fee and a long-term global approach makes for a compelling investment proposition.”
Scottish Mortgage IT is the latest investment company to drop its charges and follows 14 others which have abolished their performance fees since 2012.
Industry response
Annabel Brodie-Smith from the Association of Investment Companies said: “Since commission was abolished for open-ended funds in January 2013 a number of investment companies have reduced their fees to compete.
“To complement this there is also a clear trend for investment companies to abolish performance fees.”
