City of London investment trust drops performance fee

The £959m City of London investment trust, headed up by Job Curtis (pictured), has dropped its performance fee in a move to become more attractive to retail investors.

The trust, which has recorded 46 years of consecutive dividend increases, has slightly raised its management fee from 0.35% to 0.365% in dropping the performance fee, but overall investors will pay less with the performance fee removed, the board said. If the trust's assets break through the £1bn barrier the management charges will fall back down to 0.35%. As Investment Week reported earlier this year, the widespread roll-out of clean share classes for open-ended vehicles has put more pressure on investment trust charges, as many closed-ended funds are now more expensive than their op...