JPMorgan American Investment Trust cuts fees to compete with ETFs

JPMorgan Asset Management has cut its fees on the £1.1bn American Investment Trust as it aims to remain competitive with ETFs and smart beta products.

The asset manager will replace a single charge of 0.52 per cent with a tiered charging structure based on assets under management.

The first £500m will be charged at 0.35 per cent, the next £500m at 0.3 per cent, while assets over £1bn will be charged at 0.25 per cent.

The effective current charge is now 0.33 per cent representing a 38 per cent reduction in fees.

Kevin Carter, chair of the investment trust, says: “We believe strongly that this new fee structure allows the Company to retain its competitive position against both ETFs and other quant and smart beta products, while continuing to pursue a core active management strategy, which has been the subject of rigorous analysis and in which the Board has confidence.

The fee changes will take effect on 1 October.