Baillie Gifford, is lowering the annual management fees for four of the investment trusts it manages as it wishes to pass over the savings it has experienced to their investors, taking effect from 1 January.
The four investment trusts that will see reduced management fees are the Edinburgh Worldwide Investment Trust, Pacific Horizon Investment Trust, The Baillie Gifford Japan Trust and Baillie Gifford Shin Nippon. The fees for all four trusts will be reduced from 0.95 percent to 0.75 percent.
The company believes that these trusts have all grown “quite considerably” and has put them in a position to benefit from economies of scale.
This alteration will bring about a change of the first £50 million of net assets incurring a charge of 0.75 percent, then the next £200 million of net assets will charge 0.65 percent and 0.55 percent on assets beyond £250 million.
Baillie Gifford has been lowering fees for its investment trust for years now and according to the company “this latest reduction in management fees will save each of the four trusts £100,000 per annum.”
James Budden, director of retail marketing and distribution at Baillie Gifford, said: “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.”
The Baillie Gifford Japan Trust aims to pursue long-term capital growth through investment in medium to smaller sized Japanese companies. The Pacific Horizon Investment Trust aims to achieve capital growth through investment in the Asia-Pacific region and the Indian Sub-continent excluding Japan. The Edinburgh Worldwide Investment Trust aims for capital growth from a global portfolio of initially immature entrepreneurial companies, usually with less capitalisation of $5 billion. Finally, the Baillie Gifford Shin Nippon trust plans to achieve long term capital growth through investing in small Japanese companies.
Baillie Gifford, is an Edinburgh-based asset manager with £196 billion in assets under management.
