Standard Life UK Smaller Companies Trust, managed by Harry Nimmo (pictured), has announced some changes to its managaement fee and discount control policy.
The company has agreed with the investment manager that, with effect from 1 January 2016, a tiered management fee will be introduced with the current fee of 0.85% continuing to apply to the first £250m of the Company’s total assets but with a reduced fee of 0.65% of total assets applying above this £250m threshold. It has also been agreed that the noticed period, under the investment management agreement, be reduced from 12 months to 6 months.
Furthermore, the Board has decided to reduce the hard discount target level that the Company operates from 10% to 8% of diluted net asset value and will aim to use its 14.99% share buy-back authority (approved by shareholders in October 2015) to seek to maintain a discount level of less than 8% to diluted net asset value under normal market conditions. Share buy backs will only be made where the Board believes it to be in the best interests of shareholders as a whole and the making and timing of share buy-backs will be at the absolute discretion of the Board. In addition, the Board intends to continue to seek shareholder approval to enable it to carry out tender offers in circumstances where the Board believes that share buy-backs are not sufficient to maintain the discount at an appropriate level.
Harry Nimmo, the Company’s lead fund manager for the past 12 years, has confirmed his current intention to manage the Company’s assets on behalf of Standard Life Investments for the next seven years.
Standard life UK Smallers – changes to DCM and fee arrangements : SLS