Board slashes fees and dividend on £1bn Ignis property trust

The £1bn UK Commercial Property trust run by Ignis Asset Management has cut both its fees and its dividend in a move to a 'more sustainable policy'.

The trust's board has slashed the dividend by 30% to 3.68p, effective from May, which will mean the portfolio will yield 4.8% (based on the share price at 30 January) compared with 6.9% at present. The management fee will also drop to 0.65% of total assets, with the change taking effect from 1 July. Christopher Hill, chairman of the company, said: "I believe the re-based dividend level from Q1 2014 is a sensible and prudent decision that will set a sustainable base for the future performance of the company, balancing an attractive level of income with a solid total return." In the ...