Baillie Gifford agreed to wave six months worth of management fees, a sum equating to £732,000, in a successful bid to run the £321m Schroder UK Growth trust.
The information was revealed in the annual report of the trust, covering the period to 30 April 2018.
As FTAdviser reported, the board of the trust selected Baillie Gifford to replace Schroders in April. The change takes effect from the end of June 2018.
The name of the trust will change to the Baillie Gifford UK Growth fund and it will be managed by Iain McCombie and Milena Mileva.
The managers expect the portfolio to change radically, with a smaller number of shares bought, and a focus on growth.
The board of the trust said: “It is the board's view, after consultation with its advisers, that these changes provide the scope for improved future long-term performance and should enhance the appeal of the company.
"With the support of Baillie Gifford, the aim will be to attract new investors and, over time, seek to achieve a narrowing of the Company's discount.”
The trust trades at a discount to net assets of 7.2 per cent, according to data from the Association of Investment Companies (AIC).
The investment has dramatically under performed the AIC UK All Companies sector over the past five years to 27 June, returning 41 per cent, compared with the 61 per cent returned by the average trust in the AIC UK All Companies sector in the same time period.
David.Thorpe@ft.com
