F&C UK High Income Trust cuts management fee – F&C UK High Income Trust has published results for the year ended 31 March 2018. The fund underperformed the All-Share index, returning -2.5% in NAV terms, -2.8% in share price terms for the ordinary shares and -3.8% for the share price of the B shares. By contrast the index returned 0.9%. Revenue earnings per share increased over the year to 4.03p per share (2017: 3.82p per share). The total dividend/capital repayment in respect of the year ended 31 March 2018 amounted to 4.88p per share, an increase of 3.4%.
The benchmark has been changed from the Al-Share Capped 5% index – the board felt that investors weren’t familiar enough with the old index for it to be a useful benchmark.
F&C UK High Income Trust refinanced its borrowings at the end of September 2017, reducing debt from GBP18 million at a cost of 3.15% per annum to GBP7.5 million at 2.58%, fixed for five years. In addition it also entered into a five year unsecured multicurrency revolving credit facility for GBP7.5 million.
Management fee cut
With effect from 1 April 2018, the board has agreed with the manager that the investment management fee be reduced from 0.75% per annum on the net asset value to 0.65%.
There is no comment from the manager in the statement.
FHI : F&C UK High Income Trust cuts management fee