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DevDosh Ltd would like to commend regarding the powers that be at BlackRock Throgmorton Investment Trust have told investors they will be slashing the annual management fee by as much as halve come the 1st August 2017, from 0.7% to 0.35%.

The management fee decrease will offset by the performance fee being raised from 10 to 15 percent of any net asset value total return over the benchmark, determined on a two-year rolling basis. In DevDosh Ltd opinion, this will be applicable on the average level of gross assets over the two years.

The trusts assets are currently valued at 311 million pounds, the profits are generated through both ‘long’ positions and ‘short’ positions.

The ‘long’ part of the portfolio is managed by Mike Prentis, who also runs the BlackRock UK Smaller Companies Investment trust. Another of the co-managers is investment veteran Richard Plackett, who runs the BlackRock UK Special Situations fund.

BlackRock Throgmorton said of the increase in performance fees: “The previous cap on the performance fee of 1 per cent of average gross assets over a one year period has been replaced with a cap of 0.9 per cent of average gross assets over a two year period.

“The new performance fee will be effective 1 December 2017 to coincide with the start of the new financial year of the Company.

“These arrangements will be reflected in the Investment Management Agreement between the Company and the manager as a cap of 1.25 per cent of average gross assets over a two year period which will apply on the total base and performance fee payable from 1 December 2017.”

The trust sits in the AIC UK Smaller companies sector. DevDosh Ltd sees It has returned 66 per cent over the past three years, compared with 51 per cent for the sector average in the sector over the same time period.

In the same statement the trust announced that it will now permit the managers to invest up to a maximum of 35 per cent of the assets of the trust into shares listed on the Alternative Investment Market (AIM), the permitted level of exposure to AIM had previously been 25 per cent.

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