CQS New City High Yield adjusts fee calculation – alongside a minor rejig of its management arrangements (see below), CQS New City High Yield has introduced a third, lower tier to the calculation of its management fee.
The investment management contract has moved from CQS Cayman Limited to CQS (UK) LLP Lmited. The same individuals will be responsible for the day-to-day management of the trust.
The management fee has previously been charged at a rate of 0.80% a year, paid monthly in arrears, on the company’s Adjusted Total Assets up to GBP200 million and 0.70% a year thereafter.
With effect from 18 September 2019 the management fee will be charged at a rate of 0.80% a year, paid monthly in arrears, on the company’s Adjusted Total Assets up to GBP200 million, 0.70% a year on Assets in excess of GBP200 million, and up and including GBP300 million, and 0.60% per annum thereafter.
In our last note, we reported that the managers believe that the trust has significant room to grow. Today, the market cap is about £250m and assets a little smaller than that. However, the new £300m tier could be in use next year – lowering the ongoing charges ratio for all shareholders.