Investments  

JP Morgan waives fee on £1bn trust

JP Morgan waives fee on £1bn trust

JP Morgan won’t be collecting a fee for managing the £1bn American investment trust for nine months as the managers move to a new investment strategy. 

In an announcement to the stock exchange this morning (14 August) JP Morgan revealed the new managers of the trust have decided to drastically change the investments held in the vehicle, including fewer individual investments.

That's why from June, the fund house is waiving its fee for nine months, while scrapping its performance fee altogether.

It will also foot the bill for the cost of the transition to the new investment style, which has necessitated the trading of £1.3bn of stocks, both buys and sells, in a short period of time.

Changes to the management of the trust were the result of Garrett Fish leaving as fund manager in October.

He was replaced by Jonathan Simon and Tim Parton, who will employ a mix of the growth and value styles of investing at the trust going forward.

The trust’s chairman Kevin Carter, said one likely effect of the change was that the dividend payable by the trust in future will be lower.

The trust has returned 48 per cent over the past three years, compared with 46 per cent for the average trust in the AIC North America sector in the same time period. The current yield is 1.4 per cent.

The fund managers highlighted the present trade dispute with China and global economic uncertainty as reasons for concern. 

david.thorpe@ft.com