Henderson High Income amends fee structure – The board of Henderson High Income Trust has announced the following amendments to the fee arrangements with the Henderson Investment Funds Limited (“Janus Henderson”), the fund’s manager.
The current agreement has a base management fee of 0.50% of adjusted average gross assets. Adjusted average assets is the average of the gross assets, as shown in the audited accounts of the company, on the two financial year-ends immediately preceding the financial year for which the base fee is payable). In other words, if Henderson High Income’s accounting year ran to 30 September, the fee for the year commencing 1 October 2017 would be 0.5% of the average of the gross assets at the end of September 2017 and September 2016.
The old arrangement will continue to apply to the first GBP250m of adjusted gross assets but, with effect from 1 January 2018, a reduced management fee of 0.45% on adjusted average gross assets above GBP250m will apply.
The existing cap on total fees (base management fee plus performance fee) which is 1.00% of the average gross assets over the four quarter ends in the relevant financial year (31 December 2016, 31 March 2017, 30 June 2017 and 30 September 2017 in our example) will be replaced by a cap on the performance fee (the calculation of which remains unchanged) of 0.40% of average gross assets in any one year.
For reference, the company defines gross assets as total assets less current liabilities, but excluding any debt used for investment purposes recorded within current liabilities and excluding any Janus Henderson managed fund or Janus Henderson Group plc shares within the portfolio. The company’s gross assets as at 31 December 2017 were GBP310m.
HHI : Henderson High Income amends fee structure