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Baillie Gifford lowers investment trust charges

Spotlight on charges 700x450.jpgBaillie Gifford is lowering the  annual management charge on four of its investment trusts from 1 January 2019.

The Edinburgh Worldwide Investment Trust, Pacific Horizon Investment Trust, The Baillie Gifford Japan Trust and Baillie Gifford Shin Nippon all allow a tiered approach based on its total assets, and the group will reduce fees for the opening tier from 0.95 per cent to 0.75 per cent.

The first £50m of net assets will incur a charge of 0.75 per cent, then the next £200m will be charged 0.65 per cent and assets beyond £250m will incur a 0.55 per cent annual management fee.

The group believes lowering its fees, which it has done multiple times in recent years, will save clients of each of the four trusts £100,000 per annum.

Trade body calls for KIDs to be scrapped for closed-ended funds

Baillie Gifford director of retail marketing and distribution James Budden says: “The fee reduction for these trusts is part of our commitment to offer value for money to investors. Our trusts have seen strong asset growth and have been busy issuing new equity. We are keen to pass on the benefits of increased scale to shareholders where possible.”

All four trusts have seen solid returns over the past five years, as seen in the chart below. The Shin Nippon trust, for example, has seen a 119.59 per cent return as at 17 December 2018.



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