Gresham House Energy Storage fund has reduced its annual fund management fees.
Having previously calculated the annual management fee quarterly as a percentage of NAV, the percentage rate will now be applied to an equal weighting of the average closing daily market cap and the NAV at the start of each quarter.
The trust’s board said that the new agreement could save £1.6m compared to a fee based solely on NAV.
John Leggate, chair of Gresham House Energy Storage fund, said: the new fee arrangement “better reflects” current market conditions and investor sentiment.
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“The new arrangements further build on the significant alignment between the manager and shareholders by virtue of their existing substantial share ownership.
“The next three years will involve a very intense workload for the Manager as the company delivers on its three-year plan and the Board will keep the fee arrangements under review on an annual basis.”
Ben Guest, fund manager of the fund and managing director of Gresham House New Energy, added: “We recognise the past 18 months have been tough for all shareholders.
“We are pleased to have concluded these revised fee arrangements which further motivate the manager to deliver for shareholders. Our focus is squarely on delivering against the three-year plan unveiled during the Capital Markets Day last November.”
The trust currently trades at a 62.7% discount, according to the Association of Investment Companies.