Amendment and Termination of IMA

RNS Number : 2427J

Secured Income Fund PLC

20 August 2021

 

20 August 2021

Secured Income Fund plc

LEI: 213800TR2S2TT6PKVH57

Amendment and Termination of Investment Management Agreement

The Board of Secured Income Fund plc (the "Company") announces that it has reached an agreement with its portfolio manager KKV Investment Management Ltd ("KKVIM") and its AIFM, Kvika Securities Limited ("KSL") to amend the investment management agreement dated 7 March 2017, as amended and novated, (the "IMA") between the Company, KKVIM and KSL and for the IMA to terminate with effect from midnight on 31 December 2021 (the "Agreement").

The key terms of the Agreement are set out below:

· Management fees payable by the Company to KKVIM of £20,500 per month from 1 August 2021 to 31 December 2021;

· A payment of £20,000 in total payable by the Company to KKVIM, but conditional on a senior employee providing continued services to the Company to 31 December 2021; and

· The IMA will terminate with effect from midnight on 31 December 2021. No party has the right to terminate the IMA prior to this date without cause. No fees shall be payable by either party on termination other than the amount referred to above.

The Board believes that the revised Agreement provides the Company with certainty over the level of future management fees payable to KKVIM with the added flexibility of facilitating the Company becoming self-managed should the Board deem that appropriate, whilst providing for the ongoing management of the portfolio to 31 December 2021.  Overall, it allows for an orderly transition of the management of the portfolio to the Company.  A further announcement regarding the ongoing management of the portfolio will be made in due course.

The Company also announces that the dispute between KKVIM and SQN Capital Management, LLC, as announced on 25 June 2021, has been settled.

This announcement contains inside information for the purposes of Article 7 of UK version of EU Regulation 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Kevin Robins of Elysium Fund Management Limited.

For further information please contact: 

Directors David Stevenson (Chair) Susan Gaynor Coley Brett Miller	tel: [phone] tel: [phone] tel: [phone]
KKV Investment Management Ltd Catherine Halford Riera	[e-mail]
finnCap Ltd. Corporate Finance: William Marle Sales: Mark Whitfeld	tel: [phone]

 

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