BlackRock World Mining Trust cuts management fee

BlackRock World Mining Trust cuts management fee

The BlackRock World Mining Trust has cut the fee it pays the fund manager to 0.8 per cent of the company’s gross assets.

In a statement on Wednesday (October 21) the investment trust, which has £511m in assets, noted that the revised fee, which includes all services provided by BlackRock, was effective as of October 1 2015.

It follows an initial change in the management fee announced in its final results this March, which introduced a tiered system.

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From July 1 2015 the trust changed from a flat investment management fee of 1.3 per cent to a 1.2 per cent fee on the first £500m of gross assets, then 1 per cent on the next £500m and 0.85 per cent on gross assets over £1bn.

At the time broker Canaccord Genuity suggested that the level of cuts did not go far enough and represented a reduction of just 12.5bps to the annual fee.

The latest change reintroduces a flat fee charging structure.