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Split-cap fund firms in move to cut fees

Some of the most distressed split-cap trusts moved to put the brakes on the crisis this week by cutting or waiving their annual fees.

The move comes in response to AITC director general Daniel Godfrey&#39s letter to split trust chairmen this month, suggesting that trusts try to cut costs to stem the problems.

Aberdeen Asset Management led the move, waiving fees on its high-income trust at the end of last week while BFS Investments and Martin Currie have cut the fees on their geared income and high-income funds. Aberdeen says it is in talks with the boards of several other of its splits to cut or waive fees. Jupiter, Exeter, and Gartmore also say they are in similar discussions with the boards of their splits.

Five more trusts suspen-ded dividends last week, with analysts now predicting a slowdown in corporate activity within the sector.

Aberdeen marketing director of investment trusts Piers Currie says: “Repairing shareholder value for these funds is the key focus of our activities at present. The initiative we have taken over management fees is one of many we are taking in order to rebuild confidence in the sector. It is a clear, unambiguous indication of our commitment to restoring the health of this dynamic sector of the market.”


Lighthouse in spat with broker

Lighthouse Group clashed with broker Seymour Pierce after it gave the Aim-listed IFA a sell rating saying it was spending 23 per cent of £2.2m raised cash to pay for the fundraising itself. Lighthouse pointed out the figure also included the costs of its reverse take-over of Berkeley Wodehouse Associates and Seymour Pierce corrected its […]

Halve pension charges to 0.5%, says thinktank

The financial services industry is “bloated”, “overstaffed” and “overpaid” and pension charges should come down to 0.5 per cent, according to right-wing thinktank the Adam Smith Institute.Speaking at last week&#39s Pensions Management Conference in London on the future of retirement saving, director of special projects Matthew Young spelled out a tough challenge to the industry.He […]

Ilag committee to tackle prudential regs

Trade body the Investment and Life Assurance Group has established a working party to deal with the implications of the FSA&#39s interim prudential sourcebooks for insurers.The Prudential Regulation Working Party will operate as a subsidiary of Ilag&#39s main regulation committee. Members of it come from practitioner and associate members including representatives from Arthur Andersen, Nationwide […]

Loan overpayments &#39better than Isas&#39 for savers

Making overpayments into a mortgage is a better savings option for cautious investors than putting money in an equity-based Isa, according to Virgin One.A savings study by Virgin compares what returns can be achieved from both options. It identifies three types of saver and what they should look for in an investment.According to its calculations, […]

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Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


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