The £1 billion Murray Income Trust plc announced that it has reduced and simplified its investment management fee arrangements with Abrdn Fund Managers Limited.

“With effect from 1 July 2024, the annual investment management fee is calculated as 0.35% of the Company’s net assets up to £1.1 billion and 0.25% of any net assets above £1.1 billion,” said Murray Income Trust.

“Formerly, the fee was 0.55% on the first £350 million of net assets, 0.45% on net assets from £350 million to £450 million and 0.25% on any net assets in excess of £450 million.”

Murray Income Trust chair Peter Tait said: “I am very pleased to announce that the Board of Murray Income Trust PLC has come to an agreement with the Manager for a revised fee schedule to be applied from the beginning of the Company’s current financial year, 1 July 2024.

“The headline fee rate will now be 0.35% on the first £1.1 billion of net assets in the portfolio. 

“We believe that this is a competitive fee in the universe of UK equity income funds and should prove attractive to both existing and potential shareholders.”

Murray Income Trust, established in 1923, is an investment trust aiming for high and growing income with capital growth through investment in a portfolio principally composed of UK equities.

Managed by Abrdn, the fund has a stock market value of roughly £910 million, is listed on the London Stock Exchange and is a constituent of the FTSE-250 Index.

The fund is recognised as a “Dividend Hero” by the Association of Investment Companies, boasting a 51-year track record of annual dividend increases, making it an attractive choice for risk-averse income seekers.

The ability to invest up to 20% of the portfolio in overseas-listed companies provides differentiation from peers.