Manager to waive future performance fees
Amati VCT 2 plc
MANAGER TO WAIVE FUTURE PERFORMANCE FEES
Amati Global Investors Limited, the manager of Amati VCT 2 plc ("the Company"), has approached the Board indicating that it wishes to waive future performance fees which might become due to it under the investment management arrangements currently in place. Such waiver would have effect in respect of periods after 31 July 2014. The Board has accepted the manager's offer. Nothing was sought by the Company in return and no consideration or compensation was paid in relation to the waiver.
The performance fee calculation as it stands requires that fees are only paid based on performance which is sustained for at least six months, meaning that any positive performance arising after the Company's accounting year end on 31 January 2014 will not give rise to any further performance fees being paid or accrued for. As a result, the accrual for performance fees based on the rise in the Net Asset Value ("NAV") Total Return since 31 January 2014 will now be released as detailed below.
As at the Company's year end, and in accordance with the currently contracted performance fee arrangements, a performance fee of £152,488 is due to be paid to the manager in respect of performance to 31 July 2013 which was sustained until 31 January 2014. In addition, a performance fee of £1,270,968 has been accrued in the reported unaudited Net Asset Value ("NAV") per share which only becomes payable if the performance is sustained until 31 July 2014, and the amount to be paid will decrease in relation to any fall in the NAV Total Return at that date.
Both of these numbers remain subject to the formal audit process which the Company is currently undertaking in preparation for the publication of its year end accounts.
The last reported NAV per share, being that for 13 March 2014, included an additional accrual for performance fees of £342,739, which will be written back into the NAV per share from 20 March 2014 onwards. No additional accruals for performance fees will be required in the future.
The manager has made the same offer to the board of Amati VCT plc, and believes that by removing future performance fees, the Amati VCTs will be amongst the most compelling and straight forward VCT offerings available to investors.
21 March 2014
This information is provided by RNS
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