Aberdeen cuts fees on Asian equities investment trust


Aberdeen Asset Management has announced it is cutting investment management fees on its Asian Smaller Companies Investment Trust.

Announced in a regulatory notice today, the fees will drop from 1.2 per cent to 1 per cent. The move is effective from 1 August 2016.

The investment trust has seen returns of 19.5 per cent on its net asset value over the last six months compared to the benchmark’s 23.9 per cent, however, over a five year period the NAV has risen 79.5 per cent compared to the benchmark’s 57 per cent.

The fund invests in Asia ex-Japan and Australasia companies that have a market cap below $1bn. Its largest holdings are in Malaysian, Hong Kong and Thai equities.

Last month the asset manager announced it was cutting investment fees on its Asian Income trust, following a period of underperformance.

Hugh Young’s £372.6m Aberdeen Asian Income trust has cut management fees on the fund from 1 per cent to 0.85 per cent.

Over the five years to the end of June, the trust’s net-asset-value total return was 46.2 per cent compared to the MSCI AC Asia Pacific ex-Japan Index return of 58.4 per cent.

Earlier this month, Baillie Gifford announced it was decreasing management fees on assets above £250m to 0.55 per cent in its Japan and Edinburgh Worldwide Investment Trusts.