Schroder Income Growth Fund : SCF – fee change

Schroder Income Growth Fund has a fee structure today based on a percentage of the net revenue return (10%), a percentage of assets (0.375% on assets up to and including £75m, 0.35% on the next £50m, and 0.325% on assets in excess of £125m) and a performance fee (a symmetrical arrangement where the manager lost money for underperforming the FTSE All-Share Index as well as making money for outperforming it – the fee is calculated on rolling three year returns and was 5% of the out or underperformance of the FTSE All-Share Index capped at 25% of the asset based fee). The Board has agreed with the manager that with effect from 1 September 2014, the fee will be 0.75% on net assets.

The proposed fee should save money for shareholders. The Board say that had the new fee arrangement been in place for Schroder Income Growth Fund’s last financial year (which ended on 31 August 2013), they would have saved £188,000.

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