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Total Returns on £1000 over
Discrete performance % over
Discrete performance over
Each of the delegated external managers is entitled to a base management fee rate, levied on the assets under management, and in some cases a performance fee, calculated according to investment performance relative to an appropriate benchmark. The agreements can be terminated on one month's notice (except one, for which three months' notice applies). One of the investment mandates is operated via a fund vehicle, to simplify custody arrangements in emerging economies. The base management fee rates for managers in place at the end of 2015 ranged from 0.2% to 0.8% p.a. and the performance fees ranged from nil (the majority) to 20% of the relevant outperformance. The average base management fee, weighted according to the value of the funds under management, was 0.49% as at 31-Dec-15 (2014: 0.48%). On a similar basis, the average performance fee is 6% of the outperformance of the relevant benchmark (2014: 6%), subject to capping of payments for any particular year.