19th Jun 2025 11:54
(Alliance News) - NextEnergy Solar Fund Ltd on Thursday announced a new, reduced investment management fee structure.
The investor in solar energy and energy storage said the changes takes effect from the start of April 2025, the beginning of its financial year.
Based on its share price at the start of April, the new structure implies a 13% fall in fees.
Fees will now be applied on an equal weighting of the average of the closing daily market capitalisation during each quarter and the net asset value for the quarter. The previous structure just took the net asset value into account.
"The investment management fee will be capped at the lower of the new agreement and the old agreement, which was based solely on net asset value," NextEnergy Solar Fund said.
The firm is managed by NextEnergy Capital, part of NextEnergy Group.
If the equal weighting of the NAV and market capitalisation calculation tops GBP200 million, the investment management fee would be charged at 1%. Between GBP200 million and GBP300 million, it would be 0.9%. At over GBP300 million, it would be 0.8%.
NextEnergy Solar Fund shares traded 0.3% higher at 71.40 pence late on Thursday morning in London, giving it a market capitalisation of GBP410.7 million.
The company added: "The board is working with its advisers to assess various options aimed at improving shareholder value. The board will consult with major shareholders on certain options that it is considering before making any definitive proposals.
"The board will set out progress made and, if appropriate, the proposed plans and/or actions which are aimed at improving shareholder value, in the circular to be sent to all shareholders convening the AGM, which will be held in the latter half of August."
The AGM will also include a discontinuation vote, as per the firm's articles of association. This is because shares have traded at an average discount of over 10% to NAV over its financial year.
By Eric Cunha, Alliance News news editor
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