Baillie Gifford cuts fees for investment trust boards

Friday 15 March 2013

Baillie Gifford, the Edinburgh fund management partnership, is reducing the management fees it charges the boards of four investment trusts in order to keep them competitive, writes Simon Bain.

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The move follows the retail distribution review (RDR), which has led to improved transparency in the cost of advice and funds.

The manager said the boards of Edinburgh Worldwide, Pacific Horizon, Baillie Gifford Japan and Baillie Gifford Shin Nippon had agreed a uniform scale for investment management and administration fees. Baillie Gifford had also agreed to absorb the expected cost of complying with the Alternative Investment Fund Manager European directive.

James Budden, director of retail marketing and distribution at Baillie Gifford, said that for smaller trusts "the environment has now become very challenging in pricing terms", while regulation and European directives were likely to have an adverse impact.He said: "The investment trust industry needs to take the initiative and embrace the opportunity that RDR affords and get competitive. We want to attract more interest in the sector and encourage investors and advisers to base decisions on proposition rather than fund structure."

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Finance

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Baillie Gifford cuts fees for investment trust boards

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