SVM UK Emerging to pay fees – Given its size, SVM UK Emerging Fund‘s manager has waived its right to management fees on the fund since 2004. However, this is about to change. SVM Asset Management is entitled to a fee for providing investment management and secretarial services to the fund. This is payable quarterly in arrears at a rate equivalent to 0.75% per annum (plus VAT) of the company’s total assets less current liabilities. An incentive fee arrangement that was in place has been scrapped, at the manager’s request. The notice period under the contract remains at 12 months [QD comment: six months is becoming the norm but 12 months is still not unusual].
The fee will become payable with effect from 1 October 2018. The directors’ fees have been raised (to a total of £25,000) but these are still well below average for the sector.
[With a market cap of just £7m, SVM UK Emerging is sub-scale but, surprisingly perhaps, not the smallest of the UK smaller company trusts. While its ten-year returns still rank towards the bottom end of its peer group, recent performance has been better. The discount has narrowed and the trust may be in a position to raise additional funds.]
SVM : SVM UK Emerging to pay fees