The CT Global Managed Portfolio Trust has overhauled its fee structure in a bid to revive interest in the fund-of-investment trusts.   

The trust’s two sub-portfolios – the £91m CT Global Managed Portfolio Growth (CMPG ) and £63m CT Global Managed Portfolio Income (CMPI ) – will reduce their annual management fee from 0.65% of total assets to 0.60% of net assets.

In addition, fees on assets held in Columbia Threadneedle-managed funds will be scrapped, alongside the charge on borrowings.

‘Basing the fee on net asset value rather than total assets better aligns the interests of the manager and shareholders, in essence by not charging on any borrowings,’ the board said.

It acknowledged that fees based on market capitalisation can further align incentives, but insisted that the trust’s share buyback and issuance policy – designed to keep the discount within 5% - achieves similar results. 

These changes will come into effect on 1 September, with the board estimating that the fee overhaul will save the trust £135,000 per year. They intend to reinvest this into marketing and promotion, with the aim of attracting new investors to grow the trust. 

The fee overhaul follows the announcement that veteran manager Peter Hewitt will retire in October, having managed the trust since launch in 2008. 

Over the past three years, shares in the income portfolio are up 11.4%, which compares to a 2.1% gain by the average trust in the AIC’s flexible investment sector. It yields 6.5% and trades on a 0.5% discount.

Meanwhile, shares in the growth portfolio are up 14.4% over the same period. It trades at a 3.7% discount.