Securities Trust of Scotland; another company lowering its fees – The board of Securities Trust of Scotland (STS) and Martin Currie, the investment manager, have agreed a lower management fee.
New fee structure
The new fee structure, which has been in place since 1st April 2018, was outlined in the company’s annual financial results for the year to 31 March 2018. The market capitalisation of the company is currently £182.4m
The previous structure was a flat 0.60% fee of the company’s NAV. It has reduced to:
- 0.60% of the company’s NAV up to £200m
- 0.40% of the company’s NAV above £200m
The ongoing charges ratio fell to 0.9% (2017: 1.0%) driven by higher average net assets over the year.
The NAV total return for the year to 31 March 2018 was -1.1%. The global equity income group of equivalent funds returned -1.8%. Since moving to an unconstrained mandate on 31 May 2016 the NAV total return has been 26.4%, against the peer group median of 23.3%.
The leading contributors to absolute performance were information technology, materials and real estate, with the biggest detractor to performance coming from its holdings in the consumer discretionary sector.
The total dividend for the year was up by 2.5% at 6.1p per share.
Outlook from chairman, Rachel Beagles
“The last nine years have produced the second longest bull market in history. As the economic cycle matures, and central banks try to normalise monetary conditions following the unprecedented accommodative period of the last 10 years, it is inevitable that uncertainty over the pace of economic growth and future direction of markets is likely to increase. This provides opportunities for the unconstrained stock picker with a global opportunity set and a disciplined investment approach.”
STS : Securities Trust of Scotland; another company lowering its fees