Baillie Gifford Shin Nippon announces fee cut in results

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The Baillie Gifford Shin Nippon investment trust has announced it is reducing fees to 0.55 per cent on assets over £250m.

The investment company, which has net assets of £222m, has seen a total return of 29.5 per cent over the last six months, while its share price has risen 31.6 per cent.

The total return of the MSCI Japan Small Cap Index in sterling was 23 per cent.

The fee cut follows similar moves by the asset manager on the £422m Baillie Gifford Japan and £271.8m Edinburgh Worldwide Investment trusts, although on these the top tier in the fee structure kicks in at £250m.

This week, Aberdeen also announced it was cutting fees on its Asian Smaller Companies investment trust from 1.2 per cent to 1 per cent.

In the Shin Nippon investment trust annual management fees are calculated at 0.95 per cent on the first £50m of assets, followed by a 0.65 per cent fee for assets between £50m and £250m of assets.

In its interim results released today, the investment trust said that Japanese smaller companies had “held up well” over the last six months despite weakness in the broader market.

Undervalued real estate names, such as specialist condominium builder and reinforced concrete specialist Sho-Bond, were strong performers for the company.