28th Jan 2015 16:27
LONDON (Alliance News) - Pacific Assets Trust PLC Wednesday said the fees it pays its investment manager and support partner will change from the beginning of February, a move it says will simplify its fee structure and remove the volatility that has previously been created by the annual performance fee it paid the investment manager.
In a statement, the trust said that from February 1, it will pay investment manager First State Investment Management (UK) Ltd 0.90% of its net assets per year, payable in quarterly arrears, and will no longer pay a performance fee.
Under the current arrangements, it pays a base fee of 0.75% of its net assets plus a performance fee of 12.5% of the amount by which its total return exceeds the total return on the MSCI All Country Asia ex Japan Index plus a hurdle of 1.75% a year, measured over a rolling three year period. The board capped the total management fee at 1.75% of its net assets per year.
It said it will also change the annual fee it pays Frostrow Capital LLP for management, administrative and secretarial support, to 0.15% of its net asset value that is lower than or equal to GBP275 million and 0.10% of the net asset value above GBP275 million. It was paying Frostrow 0.20% of its market capitalisation each year. That change also comes into effect February 1.
Under the revised deals, responsibility for the trust's marketing activities will transfer to First State from Frostrow.
"The board is of the opinion that this simplification of the fee arrangements, and the removal of the volatility created by the performance fee payable to the Investment Manager, is in the interests of shareholders," it said.
Pacific Assets Trust shares were up 1.2% at 197.38 pence Wednesday afternoon.
By Steve McGrath; [email protected]; @stevemcgrath1
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