Update on Performance Fee Arrangements
The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than to professional investors in Belgium, Denmark, the Republic of Ireland, Luxembourg, the Netherlands, Norway and Sweden), Canada, Australia, Japan or the Republic of South Africa.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which forms part of domestic law in the United Kingdom pursuant to The European Union Withdrawal Act 2018, as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.
30 November 2022
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Update on Performance Fee Arrangements
As previously notified to shareholders, the Board of Chrysalis and Jupiter have been engaged in discussions to revise the current performance fee arrangements in order to ensure long term alignment between the management team and Chrysalis shareholder interests.
An agreement in principle has now been reached on revisions to the performance fee. In summary these are:
· Overall performance fee level reduced from 20% to 12.5% of the amount by which the adjusted net asset value exceeds the higher of the high-water mark and the hurdle rate
· Performance fee to be satisfied in shares (excluding tax and other liabilities attributable to receipt of the performance fee which will be satisfied in cash), with a deemed issue price set at the higher of NAV and share price as at the year-end in respect of which the fee accrues
· The shares allotted under the performance fee will be allocated by Jupiter solely to the members of the management team to ensure alignment of the team with Chrysalis shareholders
· Current "high-water mark" set in September 2021 is maintained at the same level
· Introduction of a deferred settlement structure; 25% of the shares due in any performance fee payment will be immediately issued with the remaining 75% of payment deferred by Chrysalis for between 3 and 5 years, subject to share price tests
· A cap on the performance fee payable in any one year based on the performance fee payment not resulting in the Company's total expense ratio (TER) exceeding 3.75% in that year
Further details will be provided to shareholders in due course through a circular where shareholder consent will be sought by virtue of these changes being a related party transaction for the purposes of the Listing Rules. If approved by shareholders, it is expected that the revised arrangements will apply with effect from the start of the Company's current financial year.
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For further information, please contact Media Montfort Communications Charlotte McMullen / Toto Reissland / Lesley Kezhu Wang |
+44 (0) 7542 846 844 chrysalis@montfort.london |
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Jupiter Asset Management: |
+44 (0) 20 3817 1696 |
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Liberum: |
+44 (0) 20 3100 2000 |
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Numis: |
+44 (0) 20 7260 1000 |
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Maitland Administration (Guernsey) Limited: |
+44 (0) 1481 749364 |
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's website at https://www.chrysalisinvestments.co.uk
A copy of this announcement will be available on the Company's website at http://chrysalisinvestments.co.uk. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.
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