Volta Finance trims fees – Volta Finance Limited has agreed a reduction in management fees and revised performance fees with its Investment Manager, AXA Investment
Managers Paris under an amended and restated investment management agreement.
The Board has reached agreement with AXA on introducing a tiered management fee and simplified annual performance fee structure. The management fee amendment brings an immediate small benefit to shareholders. The revised performance fee arrangement will provide a more transparent basis for aligning shareholders’ interests along with AXA IMP’s interests. The Board believes the changes are in the interests of all shareholders and should allow the company to appeal to new investors.
Under the revised fee basis, AXA IMP will be entitled to receive the following fees with effect from 1 August 2017:
MANAGEMENT FEE
AXA IMP will be entitled to receive from the Company a management fee equal to the aggregate of:
- an amount equal to 1.5% of the lower of Net Asset Value and EUR 300m; and
- on the proportion of the Net Asset Value above EUR 300m, 1%
The fee payable will continue to be subject to reduction for investments in AXA IM Managed Products.
PERFORMANCE FEE
AXA IMP will be entitled to receive a performance fee of 20% of NAV outperformance over an 8% hurdle on an annualised basis, subject to a high water mark and adjustments for dividends paid, share issuances, redemptions and buybacks. The performance fee will be calculated and paid annually in respect of each 12 month period ending on 31 July.
Notwithstanding the foregoing, performance fees payable to AXA IMP in respect of any Incentive Period shall not exceed 4.99% of the Net Asset Value at the end of such Incentive Period.
VTA : Volta Finance trims fees