Statement re Investment Management Agreement

RNS Number : 0833I

Qatar Investment Fund PLC

08 June 2011

 





8 June 2011

Qatar Investment Fund plc

("QIF" or the "Company")

Statement re Investment Management Agreement

Further to the announcement dated 21 February 2011, and the circular to shareholders of the same date, the Board is pleased to announce that they have agreed a further revision to the Investment Management Agreement.

As announced on 21 February 2011, the Company negotiated revised performance fee arrangements whereby the performance fee structure was based upon the performance of the Company's adjusted net asset value per ordinary share (being net asset value at the end of the relevant period (before any performance fees payable) plus dividends or distributions paid in excess of dividends received) compared to the performance of the QE Index.

The Board has agreed with the Investment Manager for a revision to the definition of adjusted net asset value per ordinary share such that dividends received and dividends paid are removed from the relevant definition. In the ordinary course, dividends paid would be expected to be lower than dividends received, given the Company's running costs. Accordingly, the performance fee calculation will now be based on outperformance of the adjusted net asset value (before the effect of dividends received and paid) relative to the performance of the QE Index, in any particular period. This amendment to the Investment Management Agreement is deemed to have had effect from 21 February 2011. 

David von Simson, Chairman, said: "The Board is pleased to have agreed this further amendment to the Investment Management Agreement. We believe this amendment is beneficial to shareholders as no performance fee will potentially be payable on the net effect of dividends received and dividends paid, and for performance fee calculation purposes, the amendments aligns the NAV with the QE Index (which is not adjusted for dividends paid)."

For further information please contact

David von Simson, Chairman [phone]

Qatar Investment Fund plc

Ian Dungate/Suzanne Jones + 44 (0) 1624 692600

Galileo Fund Services Limited

Andrew Potts/Callum Stewart [phone]

Panmure Gordon

Joe Winkley/Neil Winward/Ashton Clanfield [phone]

Oriel Securities

William Clutterbuck/Sam Turvey [phone]

Maitland

Additional information:

The amendments to the Investment Management Agreement are as follows:

The previous and revised definitions of "Adjusted Net Asset Value per Ordinary Share" are as follows:

Previous:

as at a particular time, the sum of A and B where:

(i)         A is the Net Asset Value per Ordinary Share at that time calculated on a basis that does not recognise any liability of the Company to the Investment Manager in respect of any performance fee that is, or may become, payable; and

(ii)        B is the sum of all dividends paid or distributions made by the Company in any Performance Period in excess of the aggregate dividend payments received by the Company from its investments since 1 January 2011 divided by the number of Ordinary Shares in issue at the time of each dividend or distribution;

Revised:

as at a particular time, the total of A minus B plus C where:

(i)         A is the Net Asset Value per Ordinary Share at that time calculated on a basis that does not recognise any liability of the Company to the Investment Manager in respect of any performance fee that is, or may become, payable;

(ii)        B is the sum of all dividends received by the Company since 1 January 2011 divided by the number of Ordinary Shares in issue at the time of each dividend; and

(iii)       C is the sum of all dividends paid by the Company since 1 January 2011 divided by the number of Ordinary Shares in issue at the time of each dividend;

The revised definition of Adjusted Net Asset Value per Ordinary Share also removes an erroneous drafting point where the adjustment for dividends paid in excess of dividends received was drafted with a mismatch in calculation periods for dividends received and paid. Dividends paid were calculated in any particular period, whereas dividends received were calculated on an aggregated basis from 1 January 2011.

All other provisions remain as per the Investment Management Agreement dated 21 February 2011.

 

END

 

 

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