Smaller Companies Trusts Lower Fund Fees

Morningstar fund analyst David Holder reveals which smaller companies investment trust is the most competitively priced and who is working hard to lower costs

David Holder 3 August, 2017 | 9:58AM
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Fees remain in the fore front of our thinking on assessment of funds. It is a topical area and one that rightly looks set for ongoing scrutiny. Changes in fees can come about for many reasons such as enhanced competition, poor performance or for the assistance of investor transparency.

Two of our Morningstar Analyst Rated smaller companies close-end funds have amended their fee structure in the last six months. Montanaro UK Smaller Companies (MTU) has seen the annual management fee reduced from 0.85% to 0.5% effective April 2017 which we welcome.

The fund has seen some lacklustre performance recently and in 2016 levied an ongoing charge of 1.2% which compares unfavourably to the category median of 0.9%. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aberforth Smaller Companies Ord1,412.00 GBP0.00Rating
BlackRock Smaller Companies Ord2,075.61 GBP1.75Rating
BlackRock Throgmorton Trust Ord940.02 GBP0.43Rating
Henderson Smaller Companies Ord1,188.00 GBP0.17Rating
Montanaro UK Smaller Companies Ord167.30 GBP1.70Rating
Standard Life UK Smaller Co. Ord722.01 GBP0.28Rating

About Author

David Holder  is a senior investment research analyst at Morningstar