The Henderson High Income Trust last month introduced a performance fee element to its charging stru...
The Henderson High Income Trust last month introduced a performance fee element to its charging structure.
The introduction of the fee has led to a fall in the trust's basic management charge of 0.6% of total assets to 0.5%.
The performance fee will be capped at 1.5% per year, rising 0.15% for every 1% outperformance of its benchmark on a sliding scale.
The trust's benchmark comprises 75% of the return on the FTSE All-Share and 25% of the FTSE A Government All Stocks Index.
Performance will be measured on a three-year rolling basis, so the fee will be calculated as at 31 December 2005 and will take the average performance over the calendar years 2003 to 2005. As the annual management fee has been reduced from 1 January but the first three-year performance fee will not be payable until 31 December 2005, another scheme has been put in place for the first two years.
For the year ending 31 December 2003, the performance fee will be based over one year to the date, while for the year ending 31 December 2004, the fee will be based on performance over two years.
The £103m trust is managed by Alex Crooke and ranked five out of 50 trusts in the UK High Income sector over one year to 13 January, on a mid-to-mid basis, returning -19.95% compared to the sector average return of -64.7%.
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