Changes to Management Fee Arrangements

RNS Number : 5147K

City of London Investment Trust PLC

30 July 2013

 



HENDERSON GLOBAL INVESTORS

THE CITY OF LONDON INVESTMENT TRUST PLC

30 July 2013

THE CITY OF LONDON INVESTMENT TRUST PLC (the "Company")

 

CHANGES TO MANAGEMENT FEE ARRANGEMENTS

On 31 December 2012 the Financial Services Authority (now Financial Conduct Authority) introduced new rules under the Retail Distribution Review on adviser charging, with the objective of making advisers' remuneration more transparent by banning commission-based financial advice. The Board believes that these new rules could have a significant impact on the demand for City of London Investment Trust ordinary shares as it creates a level playing field between investment trusts and the open-ended products which have been traditionally favoured by financial advisers and authorised intermediaries.

In view of this, the Board has reviewed the Company's management fee arrangements with a view to simplifying these and making the Company more attractive to a wider audience of retail investors. Accordingly, with effect from 1 July 2013 the performance fee element of the management arrangements has been removed. The management fee with effect from that date will be 0.365% per annum of net assets, reducing to 0.35% on the balance of net assets above £1 billion. As a result, the Company will continue to have one of the lowest Ongoing Charges in the UK Growth and Income sector and remain extremely competitive against other equity investment alternatives.

- ENDS -

For further information please contact:

Job Curtis

Portfolio Manager, The City of London Investment Trust plc

Telephone: [phone]

James de Sausmarez

Director and Head of Investment Trusts,

Henderson Global Investors                                                  

Telephone: [phone]

 

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