BRSC agrees cut in management fee and to remove the performance fee- BlackRock Smaller Companies (BRSC) has announced that, with effect from 1st March 2018 the investment managers have agreed that the management fee will be reduced.
It will be 0.6% on the first £750m total assets less current liabilities. Over £750m the fee will fall to 0.50% on the assets under management figure.
In addition, from that date, the performance fee has been removed. It had been 0.65% on the first £50m and 0.50% thereafter with 10% performance fee based on the annualised excess performance v. benchmark in the previous two financial years – capped at 0.25%; all based on total assets less current liabilities.
The Board estimates that if the new fee arrangements had been applied for the year ended 28 Feb 2018, the total fees payable would have been approximately 20% (£1.1m) lower; and the total operating charges ratio (incl. performance fees) would have been reduced from 0.93% to 0.77%.
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BlackRock Smaller Companies tries to achieve long term capital growth for shareholders through investment mainly in smaller UK quoted companies. The manager tries to achieve the objective by focusing on good quality growth companies that are trading well; stock selection is the primary focus but consideration is also given to sector weightings and underlying themes. Whilst there are no set limits on individual sector exposures against the Company’s benchmark, a schedule of sector weightings is presented at each Board meeting for review.
BRSC : BRSC agrees cut in management fee and to remove the performance fee