Its annual management fee will fall to 0.25% from 0.3% for amounts over £4bn from 1 April, following the firm’s historic move to join the FTSE 100 at the close of trading on 17 March, which it confirmed on Wednesday evening.
As one of the largest investment trusts in the UK, Scottish Mortgage currently operates an ongoing charge of 0.45% which the board sees a vital to “enhancing long term returns for all shareholders”.
Its manager Baillie Gifford has offered a further fee cut “as part of the ongoing efforts by all parties to leverage the benefits of increasing scale for shareholders”.
Thanks to a reduction of costs, the trust will introduce a tiered-fee scale on 1 April where the annual management charge will continue at 0.3% on the first £4bn of assets under management, but will fall to 0.25% on any further assets.
James Anderson, co-manager of the trust and partner of Baillie Gifford says: “’We’re thrilled by the progress over the decade since Scottish Mortgage became a genuinely global trust.
“The opportunities ahead are compelling but we need to keep improving and cutting costs is a vital and underestimated part of this process.”
