JPM Emerging Markets trust joins rush to remove performance fees

The J.P. Morgan Emerging Markets investment trust has cut its performance fee in a move it says means its charging structure is now more attractive than peers'.

As of 1 July, the company’s charges will involve “only a management fee”, levied at the existing rate of 1% on assets of up to £800m, and 0.75% on assets above that level. The £875m trust, managed by Austin Forey, currently charges a performance fee of 10% of excess NAV total return over the return of its benchmark, the MSCI Emerging Markets index. The charge, capped at 0.75% of assets, was payable in years when the trust produced a positive NAV return and raised or held its dividend. Its removal means “the company’s fee arrangements are now the most competitive in its immediate pe...