Morningstar has today upgraded its Morningstar Analyst Rating for the Standard Life UK Smaller Companies investment trust from Silver to Gold.
Szymon Idzikowski, closed-end fund analyst at Morningstar comments: “We think highly of manager Harry Nimmo. He has been investing in small caps for nearly 20 years and has built both a strong team and a disciplined process. However, until last month, the one thing we didn’t like about Standard Life UK Smaller Companies was the structure of the performance fee. The fee was calculated on a 12-month basis only, and using an index that wasn’t fully representative of the fund’s composition. Furthermore, there was no obligation to make good on underperformance. All in all, it added up to a fund more expensive than its peers. We’re very pleased to see the board abolish the fund’s performance fee and believe that by doing so it now makes this fund a standout choice in its space. We have therefore upgraded the fund’s rating from a Silver to a Gold.”