Like its biggest investment — Amazon — the Monks Investment Trust is not about dividends but capital growth. And why not, as the results have not been bad of late. Shares in the £1.4 billion trust are up 55 per cent for the past year, so who cares if the dividend yield on its portfolio is 0.2 per cent?
Managed by Baillie Gifford for much of its 88-year life, the trust is also cutting prices, saying yesterday it would be passing on the benefits of its good performance in the form of a fee reduction with the charge on all assets above £750 million. The fee will fall from 0.45 per cent to 0.33 per cent — saving clients £500,000 a year.
The fee cut