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.
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.”