Close Fund Management is to offer trail commission on the Close Beacon investment fund from January 15.
The Oeic will still feature initial commission of 3 per cent for new Isa and Pep transfer business but will also offer 0.5 per cent annual trail commission.
Close is also setting up a monthly savings plan with a minimum monthly saving of £100. Minimum lump-sum investment is £3,000.
Beacon, which is fifth out of 68 funds in the UK smaller companies sector over three years, has been managed by Andrew Buchanan since its launch six years ago. Stan dard & Poor's rates it AA.
However, the fund's short-term performance has not been so promising. Over the past three months, the fund has fallen by over 20 per cent and it is in the bottom decile of the sector.
It invests in Aim-listed companies but is not limited by sector.
Buchanan says: “Beacon has no sectoral bias but consistently concentrates on well managed companies with a seed business. Many of its technology investments are long-standing holdings which now pay dividends.”