The Board of Utilico Emerging Markets has agreed a number of changes to the management fee.
The base fee is being amended to 0.65% of net assets from 0.5% of gross assets less current liabilities. Utilico Emerging Markets has gearing of about £20m at the moment on net assets of £412m so this translates into an increase in the fee.
They are introducing a minimum hurdle element into the performance fee calculation so that no fee is payable unless returns exceed 8%.
Also they are capping the performance fee at 1.85% of average net assets.
The changes take effect from 1 April 2014.