The board of the £1.6bn City of London investment trust has announced a cut to the management fees on the trust.
Details were revealed in the half-year report of the trust covering the six months to December 31, 2018, out yesterday (February 14).
The City of London investment trust, which has increased its dividend for each of the past 51 years, revealed the fee will be cut to 0.325 per cent.
The previous fee had been 0.365 per cent on the first £1bn, and 0.35 per cent for the remainder.
The total fee charged in the last financial year was 0.41 per cent, but the board expect this to be lower next year.
The trust is managed by Job Curtis at Janus Henderson.
Mr Curtis recently told FTAdviser that he has increased the level of debt taken on the by trust due to the cheap valuations at which he believes UK shares trade.
Among the new investments made in the trust in the six month period were wealth manager St James Place and Ferguson, a building supplies company.
The trust posted a loss of just more than 10 per cent in the six month period, compared with a loss of 11 per cent for the FTSE All Share as a whole.
The trust has a current dividend yield of 4.5 per cent.
Jim Harrison, of advice firm Master Adviser in London said the trust was "great value before the fee cut and is even better value now."
david.thorpe@ft.com
