Wealth Manager - the site for professional investment managers
Virtual Portfolio | Print page
To realise capital growth from a concentrated portfolio of resource equities.
There is a management fee of 0.85% p.a. of NAV subject to a minimum fee of GBP150,000 p.a. and a performance fee consisting of two components. The first is calculated for the first time in respect of the financial accounting period first ending following the second anniversary of the date of admission. The fee is equal to 20% of the excess of the NAV per share as at the end of the financial accounting period over the basic performance hurdle, this being an amount equal to the issue price increased by 10% of the issue price p.a. up to the end of the relevant performance period. Thereafter the fee is paid annually in respect of each financial period subject to the basic performance hurdle and a high watermark. The high watermark is the NAV at the end of the financial period in respect of which the last performance fee was paid. If, however, the high watermark is not exceeded for any consecutive period of three years it shall be re-based to a value equal to the NAV as at the end of the third financial period. The basic performance hurdle must however still be exceeded in order for this component of the performance fee to be payable. The second component is an amount equal to 20% of the sum of all dividends, distributions and other returns of capital paid out to shareholders during the relevant performance period, subject to the performance hurdle having been satisfied. The performance hurdle is the requirement that the NAV on the relevant calculation date must exceed an amount equal to the Issue Price increased by 10% of the issue price p.a. up to the end of the relevant performance period.