Scottish Mortgage will be promoted to the FTSE100 list
Update 1 March
Scottish Mortgage announces that, in recognition of its continued growth and success, there will be a cut in the annual management fees for the company, effective from 1 April 2017.
Scottish Mortgage already enjoys one of the lowest ongoing charges levels in the sector with an ongoing charge of 0.45% for the year to 31 March 2016, and both the Board and the Managers view this as important to enhancing long term returns for all shareholders. In 2014, the Managers and Board reduced the company’s annual management fees in recognition of the growth of Scottish Mortgage and in furtherance of this aim.
Since then Scottish Mortgage has continued to grow in scale. Baillie Gifford has offered a further fee cut to the Board as part of the ongoing efforts by all parties to leverage the benefits of increasing scale for shareholders, primarily through reducing costs. To this end, a tiered fee scale will be introduced from 1 April 2017. The annual management charge will continue to be 0.3% on the first GBP4 billion of assets under management, but will fall to 0.25% thereafter.
SMT : Scottish Mortgage makes FTSE100