BlackRock trust drops performance fee

The BlackRock Income and Growth Investment Trust has become the latest trust to drop its performance fee.

The trust, which is co-managed by BlackRock’s Adam Avigdori and Mark Wharrier, today announced it was dropping its performance fee from July 1.

The performance fee had been previously calculated as 15 per cent of the fund’s net asset value outperformance of its benchmark, the FTSE All Share Total Return index.

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However, the fund has underperformed that benchmark in one, three, five and ten year periods, according to data from FE Analytics.

The trust will retain the same annual management fee so its ongoing charges figure (OCF) will remain as 1.14 per cent, according to data from the AIC.

The trust has become the latest in a long line of investment trusts to cut its performance fee in recent years.

The BlackRock trust’s board said it had cut the fee because it was “mindful of the impact of the Retail Distribution Review on fund charges and the desire to make these charges as simple and transparent as possible”.