Buxton's performance charge scrapped on UK trust

Board of UK Growth investment trust scraps performance fee following period of outperformance.

The board of Richard Buxton’s £216m UK Growth investment trust has revamped the fee structure, axing its performance fee following a turnaround in returns. The board said it has dropped the 10% performance fee charged on any outperformance of its benchmark, which has been in place for more than a decade. While scrapping the performance fee, the annual management fee has been increased to 0.65% from 0.4%. This compares favourably to Buxton’s open-ended fund, the £2.9bn Schroder UK Alpha Plus, which has a management fee of 1.5%. The board introduced the performance fee in 1999 in ...