The Hicl Infrastructure investment trust has simplified its charging structure and plans to reduce its fee when its assets pass £2.25bn.
In an agreement between the board of the trust and the managers, Infrared Capital Partners, the trust has removed the higher 1.5 per cent annual management fee that was paid on assets within the portfolio that were “under construction” rather than fully operational.
The removal of the higher fee means the trust’s managers currently receive 1.1 per cent for the trust’s assets up to £750m and 1 per cent for the assets above £750m.
The trust is now proposing to extend this “taper” in the management fee, so that any assets of more than £2.25bn will only generate a 0.8 per cent fee for the trust’s managers.
The removal of the higher “under construction” fee and the further tapering will come into affect from April 1 2014.
Hicl Infrastructure has grown rapidly since it was launched in 2006, regularly issuing shares to buy up new infrastructure assets, and it currently has just under £1.5bn in total assets.