Bankers (Ordinary Share) BNKR

Objective:

Management Contract & Fees:

Investment management, accounting, secretarial and administrative services are provided to the Group by wholly owned subsidiary companies of Henderson Global Investors (Holdings) plc and by BNP Paribas Fund Services UK Limited. From 01-Nov-05: i) the basic annual management fee was reduced from 0.45% to 0.30% of gross assets per annum; ii) the Manager is eligible for a fee based on the degree of outperformance, calculated on the basis of the average net asset value total return over a rolling three year period compared to a composite index representing in equal proportions the FTSE All-Share Index and the FTSE World (ex UK) Index; iii) payment of a performance fee in any year is subject to an outperformance hurdle rate of 1.5% per annum; iv) for the first 1% of outperformance in excess of the hurdle rate, a performance fee of 0.15% of gross assets will be paid, and in respect of each further 1% of outperformance, a fee of a further 0.2& of gross assets up to a maximum performance fee in any one year of 0.55% of gross assets, so that the maximum total fee payable in any one year is 0.85% of gross assets. This is subject to a transition arrangement whereby the maximum fees payable in the years to 31-Oct-06 and 31-Oct-06 are 0.5% and 0.675% respectively; v) no performance fee will be paid in any year if either the Companys net asset value or its share price is lower at the end of the financial year than at the end of the previous financial year; vi) no performance fee will be paid if in any financial year distributable income plus revenue reserves is lower than the gross dividends payable in the previous financial year; and vii) the notice period for termination of the contract has been reduced from twelve months to six months. All publications of the Companys NAV take account of any performance fee owing or potentially owing.