3rd Mar 2014 10:37
LONDON (Alliance News) - Scottish Mortgage Investment Trust PLC Monday said the management fee paid to Edinburgh-based manager Baillie Gifford & Co will fall as of the start of April, and could be further reduced if assets continue to grow.
From April 1, Baillie Gifford's annual remuneration will be 0.30% of total assets less current liabilities, excluding excluding short term borrowings for investment purpose. It will be calculated and payable quarterly.
The current remuneration fee stands at 0.32%.
"Scottish Mortgage has grown steadily over the years and it is fortunate that its scale with total assets of around GBP3 billion allows this reduction to be made. Further reductions would be considered if assets continue to grow. The board considers that the combination of a low fee and a long term global approach makes for a compelling investment proposition," said John Scott, Chairman.
Scottish Mortgage is an investment trust that aims to maximise total return over the long-term from a focused and actively managed portfolio.
The trust's shares were Monday quoted at 1,075.00 pence, down 2.0%.
By Samuel Agini; [email protected]; @samuelagini
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