Cambridge Industrial Trust to slash performance fees

THE manager of Cambridge Industrial Trust (CIT) has decided to amend the calculation method of its performance fees - this will reduce the fees by about half - with immediate effect.

Speaking at the Reit's fifth annual general meeting, the manager said its Tier 2 performance fee will be reduced to 5 per cent (from 15 per cent), effectively cutting the performance fees by up to 50 per cent.

The fee revision has to do with the trust's rather unique method of pegging its performance fees to its share price. In the first half of last year, its counter started at 68.5 cents, broke through two key resistances to reach a high of 85.5 cents on April 22, before ending at 72.5 cents on June 28.