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First State AA-rated Asia star nets £1.3m first half performance bonus
by Robert St George on Sep 30, 2013 at 10:50
As well as an annual management fee of 0.75% on the fund, First State is entitled to a performance fee worth 12.5% of returns after a 1.75% hurdle over the MSCI All Country Asia ex Japan index, measured over a rolling three-year period.
Through the six months ended 31 July 2013, Pacific Assets returned 6.9% on a net asset basis and 12.3% on a share-price basis thanks to the narrowing of its discount. The fund’s benchmark lost 1.1%.
This significant outperformance has contributed to First State amassing a potential bonus of £1.3 million for the latest three-year period, more than double the performance fee of £627,000 it generated in the full year to 31 January 2013.
The fee will become payable in January provided the fund remains sufficiently ahead of its benchmark on the three-year view.
The trust’s board has capped the total fees payable at 1.75% a year; based on the figures for the past six months, its current expenses stand at 1.15%.
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by Robert St George on Dec 05, 2013 at 11:25