European Assets (EAT) has announced an amendment to the basis of calculation of its management fee payable to BMO Investment Business Limited (the manager).
Previously, the manager received a fee equal to 0.8% per annum of the value of funds under management (calculated as the value of total assets less current liabilities (excluding borrowings) at the end of the preceding quarter. In cases where the value of funds under management exceeded €500m, the applicable rate over such excess value was 0.65% per annum.)
Fee will now be 0.75% and 0.6% for funds under management above €400m
Following the amendment, which is effective from 1 April 2020, the investment management fee has been reduced from 0.8 to 0.75% per annum of the value of funds under management. For funds under management in excess of €400m, the applicable rate over such excess value will be 0.6% per annum.
This fee is calculated quarterly and payable in advance.
Funds under management as at close of business on 27 March 2020 were €352m.
EAT: European Assets management fee to be lowered by 5bps