Abrdn PLC (LSE:ABDN)’s equity income trust, Abrdn Equity Income Trust PLC, has flattened its management fee structure, according to a statement on Wednesday.
The trust said its board has “negotiated a change to the terms of the management fee payable by the Company to the Manager”.
As of last month, the trust’s management fee will be charged at a flat fee of 0.55% per year of the company’s net asset value.
The management fee was previously charged at a rate of 0.65% per year of company NAV for up to £175 million, which then ratcheted down to 0.55% if the trust’s NAV rose above that threshold.
Based on its net assets on Monday, which totalled £142.7 million, the change will amount to a 15.4% reduction in the fee payable compared to the existing arrangement, abrdn Holdings’ Company Secretary Paul Evitt said in a statement.