India Capital Growth (IGC) has announced that, with effect from 1 July 2019, its annual management fee will be charged at a rate of 1.25%. This is a reduction from the current rate of 1.50%. Reflecting this, the company says that its annualised ongoing charges ratio is forecast to fall to around 1.6% ,based upon Total Assets of £130m.
Potential for tiered fee structure in the future
Furthermore, IGC’s board says that, as part of the desire to pass on the benefits of increased scale to shareholders where possible, further tiered reductions in the rate charged for the management fee will be considered when Total Assets grow significantly.
Comments on the fee change from Elisabeth Scott, Chairman of India Capital Growth Fund
“I am pleased to announce this management fee reduction as part of the Board’s commitment to deliver value-for-money investment into India. This meaningful reduction in ongoing costs, marks India Capital Growth Fund as the competitive vehicle for investors wishing to benefit from exposure to the Indian mid and small cap opportunity.”
Comments on the recent election result from David Cornell, Managing Director and Chief Investment Officer of Ocean Dial, IGC’s investment manager
“The re-election of Narendra Modi reignites the investment case for India. We anticipate that reform based policy initiatives (such as the Banking & Insolvency Act and Goods & Services Tax) can gather momentum as the focus switches to creating productive employment & ensuring India continues on a more business and investment friendly journey.”
About India Capital Growth
India Capital Growth is an investment company listed on the Main Market of the London Stock Exchange (Ticker: IGC). Its investment objective is to provide long-term capital appreciation by investing (directly or indirectly) in companies based in India, and it invests in India, predominantly in listed mid-and-small-cap Indian companies.