The trust’s board announced today that the management fee on above £1.75bn of total assets will drop to 0.3% from 1 May.
From that point, the annual management fee payable to the company’s investment managers and secretaries will be 0.45% on the first £750m of total assets, 0.33% on the next £1bn and 0.3% on the remaining total assets.
The fees are calculated on a quarterly basis.
According to FE data, Monks now has £1.73bn of assets under management, meaning it is fast approaching the new tier.
Monks introduced the tiered charging structure in March last year. The move saved investors £500,000 and reduced the ongoing charges figure from 0.59% to 0.55%.
James Budden, director of retail marketing and distribution at Baillie Gifford, said if the trust hits £2bn under management it is expected to save £75,000 in economies of scale, although it will take time for any reduction in OCF to filter through to investors.
James Ferguson, chairman of the Monks Investment Trust, said: “I am delighted to be announcing a further change in the calculation of the company’s management fee, with the introduction of a further stepped tier at £1.75bn of total assets.
“This will ensure that shareholders continue to benefit from economies of scale as the company grows and that the ongoing charges remain highly competitive against other funds.”
In September, Baillie Gifford cut annual management charges across a range of onshore and offshore funds.
