# Scottish Mortgage Investment Trust PLC to enter the FTSE100 on 17 March 2017 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-03 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Scottish Mortgage Investment Trust PLC Announces Further Meta Description: Scottish Mortgage Investment Trust PLC will enter the FTSE100 index for the first time in history, with management fees cut effective from 1 April 2017. URL: https://financedigest.com/scottish-mortgage-investment-trust-plc-to-enter-the-ftse100-on-17-march-2017html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sh8-5590-925-1736844128548-compressed.jpg) **The company announces a further cut in its annual management costs** Scottish Mortgage Investment Trust PLC, the UK’s largest conventional investment trust with gross assets in excess of £5 billion\* as at 28 February 2017 and managed by Baillie Gifford, the Edinburgh based investment management partnership, will enter the FTSE100 index for the first time in its history, with effect from the close of the market on 17 March 2017. Scottish Mortgage announces that, in recognition of its continued growth and success, there will be a cut in the annual management fees for the company, effective from 1 April 2017. Scottish Mortgage already enjoys one of the lowest ongoing charges levels in the sector with an ongoing charge of 0.45% for the year to 31 March 2016, and both the Board and the [Managers view this as important to enhancing long term returns for all shareholders](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management"). In 2014, the Managers and Board reduced the company’s [annual management fees in recognition of the growth](https://www.financedigest.com/automotive-gas-charged-shock-absorbers-market-worth-will-reach-us-2-9-bn-in-2021-grow-at-overall-compound-annual-growth-rate-cagr-of-5-0-between-2021-and-2031.html "Automotive Gas Charged Shock Absorbers Market worth will reach US$ 2.9 Bn in 2021, grow at overall compound annual growth rate (CAGR) of 5.0% between 2021 and 2031") of Scottish Mortgage and in furtherance of this aim. Since then Scottish Mortgage has [continued to grow](https://www.financedigest.com/continuous-innovations-and-growing-urbanization-to-amplify-sales-of-privacy-screens-market-fact-mr-report.html "Continuous Innovations and Growing Urbanization to Amplify Sales of Privacy Screens Market: Fact.MR Report") in scale.  Baillie Gifford has offered a further [fee cut](https://www.financedigest.com/uks-heathrow-airlines-appeal-regulators-landing-fee-cut.html "UK’s Heathrow, airlines appeal regulator’s landing fee cut") to the Board as part of the ongoing efforts by all parties to leverage the benefits of increasing scale for shareholders, primarily through reducing costs.  To this end, a tiered fee scale will be introduced from 1 April 2017.  The annual management charge will continue to be 0.3% on the first £4 billion of [assets](https://www.financedigest.com/iot-platform-wells-up-south-africas-silulumanzi-water-utility-power-asset-management-savings-and-monitoring.html "IoT Platform Wells Up South Africa’s Silulumanzi Water Utility Power Asset Management Savings and Monitoring") under management, but will fall to 0.25% thereafter. James Anderson, co-manager of the trust and partner of Baillie Gifford says: “’We’re thrilled by the progress over the [decade since Scottish Mortgage became a genuinely global](https://www.financedigest.com/global-hid-ballast-market-expected-to-decline-with-a-cagr-of-9-8-in-the-coming-decade.html "Global HID Ballast Market Expected to Decline with a CAGR of -9.8% in the Coming Decade") trust. The opportunities ahead are compelling but we need to keep improving and [cutting costs](https://www.financedigest.com/volvo-cars-to-axe-1300-jobs-as-it-steps-up-cost-cuts.html "Volvo Cars to axe 1,300 jobs as it steps up cost cuts") is a vital and underestimated part of this process.” John Scott, Chairman of Scottish Mortgage, says:“Admittance to the FTSE100 is a milestone for the company. It reflects the trust’s strong [investment performance](https://www.financedigest.com/three-fundamental-tips-to-enhance-your-investment-portfolio-performance.html "Three fundamental tips to enhance your investment portfolio performance") over the past 10 years, in addition to which our assets have grown on the back of the issuance from treasury of over 130 million shares in the past three years.  This is testament to the success of our [Managers’ high conviction approach in owning what we consider to be the world’s](https://www.financedigest.com/marketmind-purchasing-managers-of-the-world-diverge.html "Marketmind: Purchasing managers of the world, diverge") most exciting growth businesses. For the trust it brings increased visibility, and for [shareholders looking to buy or sell it offers](https://www.financedigest.com/germanys-slm-recommends-shareholders-accept-nikon-takeover-offer.html "Germany’s SLM recommends shareholders accept Nikon takeover offer") increased liquidity. “Our size also [brings economies](https://www.financedigest.com/analysis-end-of-furlough-brings-uncertainty-for-uk-jobs-and-economy.html "Analysis-End of furlough brings uncertainty for UK jobs and economy") of scale; I am delighted that we have agreed a reduction in the management fee.  The flat rate of 0.3% per annum which we have been paying was already amongst the lowest in the investment [trust sector](https://www.financedigest.com/why-trust-and-technology-are-the-perfect-partnership-to-rebuild-the-financial-sector.html "Why trust and technology are the perfect partnership to rebuild the financial sector") but I am delighted that, henceforth, the top tier of our assets will attract a fee of 0.25% per annum.” --- This blog is powered by Superblog. 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