Investment management fees
For immediate release on 17 March 2014
Utilico Emerging Markets Limited
Investment Management Fee Arrangements
Utilico Emerging Markets Limited (the "Company") announces that the Board has reviewed the fees payable to ICM Limited, the Company's Investment Manager. As a result of this review, the Directors, in conjunction with the Investment Manager, have agreed to make a number of changes to the existing fee arrangements under the investment management agreement.
The Board believes that it is in the best interests of shareholders to have a competitive base fee and a performance fee, subject to an appropriate hurdle, high watermark and cap. Accordingly the changes include the introduction of a cap on the amount of the performance fee payable, an increase in the minimum level of the hurdle before a performance fee is payable, and moving the basis for the calculation of the management fee from gross assets to net assets, with a corresponding increase in the management fee percentage as follows:
(i) the annual management fee will be changed from 0.5 per cent. of gross assets (less current liabilities excluding borrowings incurred for investment purposes) to 0.65 per cent. of net assets;
(ii) the hurdle to the calculation determining whether a performance fee is payable will be set at the higher of the existing hurdle and 8 per cent.; and
(iii) the maximum amount of a performance fee payable in respect of any financial year will be 1.85 per cent. of the average net assets of the Company and any performance fee in excess of this cap will be written off.
The Board believes that the amended fee arrangements, which will apply with effect from 1 April 2014, represent good value for shareholders and will continue to incentivise the Company's Investment Manager.
For further information please contact:
ICM Limited
Charles Jillings
01372 271486
Westhouse Securities Limited
Alastair Moreton
Hannah Young
Darren Vickers
0207 601 6118
This information is provided by RNS
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