Schroder Oriental Income cuts performance fee – Schroder Oriental Income (SOI) has posted its interim results for the six months to 29 February 2022. During this period, the trust delivered an NAV return of 0.9% and a share price return of -0.7%. The share price discount to NAV ended the six month period at 5.2%, a little wider than the 3.4% at the end of the last financial year in August.
Meanwhile, the board has announced a reduction in the fees payable by shareholders. The company has both a recurring investment management fee and a performance fee. The board believes it is important that any performance fee rewards the manager proportionately and for delivering genuine added value rather than just market based returns.
SOI has now agreed a reduction in the performance fee with the manager from 10% of any gains in excess of a 7% NAV return in a financial year, capped at 0.75% of NAV in any year to 10% of any gains in excess of 8%, capped at 0.65%. This will be backdated to 1 September 2021. In addition, the carry forward from the cap that previously existed has been eliminated.
The chairman said: ‘This represents a meaningful saving for shareholders whilst ensuring that the manager is properly incentivised and rewarded for true added value. Had the new fee basis been in operation, that would have produced a saving of £752,000 over the past year. This reduced fee basis will ensure that the company’s total expense ratio remains competitive. The board would like to thank Schroders for agreeing to the fee reduction.’
SOI : Schroder Oriental Income cuts performance fee