Investment Trust fees – should they be based on market cap or NAV?

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Should Investment Trusts (including VCTs)  base their fees on market cap and not Net Asset Value?

In the case of of Chrysalis Investments (CHRY), the 58% discount to NAV means the 0.77% fees as a % of NAV are in excess of 1.5% of market cap, which in my opinion is egregious:

 

A story in Investment Week “Chrysalis managers stand by unlisted holdings” https://www.investmentweek.co.uk/4055056/ also highlighted the issues.

By Cliff Weight, Director ShareSoc

DISCLOSURE: The author does not hold shares in Chrysalis Investments

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