BACIT is proposing that it start paying management fees. These won’t be huge and the investment policy – that it will invest in underlying funds on a “gross return” basis, that it will invest up to 1% a year of its net asset value in drug development projects and that it will donate 1% a year of its net asset value to charities including the Institute for Cancer Research – will remain unchanged.
To date, neither the investment manager nor the BACIT investment management team have received a fee from the Company for their investment management services. Under the proposed arrangements, the personnel costs and operating expenses of the investment management function will be covered by a new fee payable by BACIT to the investment manager equal to 0.19% per annum of the Company’s net asset value. The idea is that the investment manager shouldn’t make a meaningful profit from the fee. Tom Henderson will continue to provide his services as a director of the Company and as CEO of the investment manager free of charge.
Shareholders get to vote on this idea at a special meeting being convened on 11 December.
BACT : BACIT to start paying management fees