Schroder Income Growth announces lower management fee – Schroder Income Growth Fund (SCF) has announced that new fee arrangements have been agreed with the company’s investment manager Schroder Investment Management (SDR.LN)
The new arrangements is effective from 1 September 2018.
The previous fee structure
The previous arrangement was a flat fee of 0.75% per annum on the value of the company’s assets under management, net of current liabilities other than short term borrowings, less any cash up to the level of borrowings (chargeable assets).
The new fee structure
The new arrangement is a reduced, tiered fee. The new fee will be charged at the rate of 0.65% per annum on the first £200 million and 0.55% per annum on subsequent amounts.
Schroder Income Growth give as an illustration, that if the new fee arrangements had been applied to the company’s year-end chargeable assets, the management fee payable would have reduced by 15% to 0.60%.
More on Schroder Income Growth
Schroder Income Growth’s principal investment objectives are to provide real growth of income, being growth of income in excess of the rate of inflation, and capital growth as a consequence of the rising income. The policy is to invest primarily in above-average yielding UK equities but up to 20% of the portfolio may be invested in equities listed on recognised stock exchanges outside the UK. If considered appropriate, the Company may use equity related instruments such as convertible securities and up to 10% of the portfolio may be invested in bonds. In addition, up to 20% of total income may be generated by short-dated call options written on holdings in the portfolio.
SCF : Schroder Income Growth announces lower management fee