2nd Sep 2019 13:08
(Alliance News) - St Peter Port Capital Ltd on Monday said it plans to terminate its investment management agreement with St Peter Port Investment Management Ltd and has created a new subsidiary to provide advisory services.
The fund's discretionary investment management fees started at 2.0% of net assets per year, but this has been cut - most recently to 1.3% per year. During the same period, net asset reduced substantially and so fees were even smaller.
However, by terminating the deal with its current investment manager and creating a new subsidiary to "provide certain investment advisory and monitoring services to the company", St Peter Port Capital would cut its already reduced investment management costs by over 50%.
The new subsidiary, known as St Peter Port Capital Services Ltd, will have employees from Shore Capital Group Ltd and will cost GBP60,000 per year.
St Peter Port Investment Management has already agreed to terminate its mandate with St Peter Port Capital "with immediate effect and without notice".
"The board intends in the near future to convene a general meeting to enable shareholders to vote on continuing the life of the company," said St Peter Port Capital.
Shares in the closed ended investment company were untraded at 6.50 pence in London on Monday.
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SPPC.L