Henderson EuroTrust (HNE) has announced new fee arrangements that will take effect from 1 January 2019. Under the new fee arrangements, the performance fee will be removed. However, HNE has a tiered base management fee (calculated as a proportion of net assets) and the level where the base fee switches to the lower rate has been increased from £250m to £300m. This would appear to have no immediate impact (HNE says that its net assets were £240m as at 30 November 2018) but the base management fee will be higher once net assets exceed £250m.
New fee arrangements
From 1 January 2019, the base management fee will be calculated at the rate of 0.65% per annum of net assets up to £300m (previously £250m) and 0.55% for net assets above £300m (previously £250m), payable quarterly in arrears. Net assets as at 30 November 2018 were £240m.
About Henderson EuroTrust
Henderson EuroTrust invests predominantly in large and medium-sized companies which are perceived to be undervalued in view of their growth prospects or on account of significant changes in management or structure. The company aims to achieve a superior total return from a portfolio of high quality European investments. Henderson EuroTrust maintains a focused portfolio of around 50 stocks, investing in mid to large companies from Western Europe. The manager consistently employs a long term buy and hold policy.