Pacific Assets trust scraps performance fee

The board of the Pacific Assets trust, managed by First State's Asia team, will scrap its performance fee, following the lead of a number of other vehicles in the closed-ended space.

From 1 February, the annual management fee on the £186m trust will be 0.9%. The previous fee structure included a base fee of 0.75% of the trust's assets plus a performance fee of 12.5% of any returns above MSCI All Country Asia ex Japan index, with a hurdle rate of 1.75%. The total management fee was capped at 1.75% of assets per annum. The trust has also reduced what it pays to Frostrow Capital for "management, administrative and secretarial support" down from 0.2% to 0.15% of NAV if less than or equal to £275m, and 0.1% of NAV if it is above that. The investment manager will now br...