The Board of Perpetual Income and Growth Investment Trust has announced a change to its management fee. It is removing its performance-based fee and making an adjustment to the calculation of the base fee. With effect from 1 April 2017, the annual management fee will be calculated at an annual rate of 0.6% per annum on the first £900m of assets and at a rate of 0.4% thereafter.
For the last three years, the annual management fee has been 0.6% on the first £500m of assets and 0.4% thereafter. This change increases the amount that the manager earns on the first £900m of assets by £800,000. The fund is already larger than this £900m figure.
The quid pro quo for this is that the manager is giving up the performance fee. This was 10% of any outperformance of the All-Share Index but it was capped at 0.5% of assets. With assets today of £1.06bn, the maximum performance fee would have been £5.3m.
Comments:
Bill Alexander, Chairman, commented “Shareholders have benefited greatly in both absolute and relative terms from the performance of the Company’s portfolio over the last 20 years, but the Board is also mindful of the need for it to be competitive in the wider marketplace and responsive to that market and to shareholders. We are therefore delighted to announce these changes which should help to ensure that the Company continues to be an attractive investment in the future.”
Mark Barnett added “Having managed this Company’s portfolio since 1999 I am proud of the returns we have generated for shareholders, and I look forward to continuing to work with the Board and delivering superior results for shareholders in the future.”
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PLI : Perpetual Income & Growth changes management fee