Nimmo's trust scraps performance charge

The board of Harry Nimmo's £163m Standard Life UK Smaller Companies trust has axed its performance fee, in a move to offer a transparent charging structure ahead of the impending retail distribution review (RDR).

The company has dropped Nimmo's performance charge and will now just operate with a standard annual fee, although this has been increased from 0.65% to 0.85%. The performance charge was earned if Nimmo outperformed his becnhmark +1% over any year. The trust was paid 20% of the outperformance of the index, although this was capped at a maximum of 0.6% per annum. "The board recognises the importance of the company having a clear and easily understood fee basis to ensure that it remains competitive and fair to shareholders in the post RDR environment," said the board. "With this in mi...