Syncona Revises Investment Management Arrangement To Save Costs

9th Mar 2018 08:43

LONDON (Alliance News) - Syncona Ltd said on Tuesday it has revised its investment management agreement with BACIT UK Ltd in order to reduce costs for shareholders.

The FTSE 250-listed closed-end investment company has terminated its previous agreement, in place since December 2016, whereby BACIT was to provide investment management for five years at an annual fee of 0.19% of net asset value, with a further period of five years at 0.15% per annum.

Now the investment decision making will be done by Syncona Investment Management Ltd, overseen by an internal funds investment committee, and an external third-party consultancy will give quarterly risk and performance reporting.

BACIT UK Chief Investment Officer Arabella Cecil will become head of fund investments for the new Syncona Investment Management from April 1, while Chief Executive Officer Tom Henderson will remain as non-executive director of Syncona.

The new arrangements are expected to produce cost savings to Syncona over the duration of the original arrangement and reduce the maximum management fees to 1.10% of net asset value per annum from 1.19%.

Due to the early end of the contract, Syncona will pay a fee of GBP3.8 million to BACIT UK.

"This is a natural next step for Syncona after a very successful first year as a combined business. The strategic rationale for bringing the two portfolios together was simple; to enable the growth and success of the life sciences business with the fund investments providing a deep pool of capital to draw on. The process of combination has been overwhelmingly successful and it is clear that today we are one integrated team aligned behind the delivery of Syncona's vision to create global leaders in life sciences," Henderson said.

Shares in Syncona remained flat at 208.00 pence on Friday.

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