Polar Capital Global Financials trust to cut fees as it extends life cycle

No longer fixed life structure

The board of the Polar Capital Global Financials trust intends to reduce the management fee on the vehicle as it announces plans to extend the life of the investment trust past the original fixed seven-year term.

Under the proposals, the current fixed term structure will change to provide all shareholders with a five-year tender offer, and the existing commitment to wind up the company by 31 May will be deleted from the prospectus. Any shareholders wishing to exit the trust will be able to get their money back at the prevailing NAV per ordinary share, minus costs, which are not expected to be higher than 100bps. However, the new plan is conditional on the size of the company remaining large enough to continue running; currently the trust has £299m in assets. As the trust moves to a new stru...