Aurora Investment Trust PLC Net Asset Value(s) (5753L)
04 January 2023 - 5:25AM
UK Regulatory
TIDMARR
RNS Number : 5753L
Aurora Investment Trust PLC
03 January 2023
Aurora Investment Trust plc (the 'Company')
LEI: 2138007OUWIZFMAGO575
The Company announces that its unaudited Net Asset Value ("NAV")
as at the close of business on 30 December 2022 was 207.64p per
ordinary share (cum-income).
Investments in the Company's portfolio have been valued on a bid
price basis in the above calculation.
Note on performance fees
The Company's Investment Manager, Phoenix Asset Management
Partners Limited ("Phoenix" or the "Investment Manager"), does not
earn an ongoing annual management fee. Instead, the Investment
Manager is paid an annual performance fee, equal to one third of
the outperformance of the Company's NAV against its benchmark, FTSE
All-Share Index (total return).
The performance fee is paid by way of the issuance of Ordinary
Shares, which are subject to a fixed three-year clawback period. If
the outperformance versus the index reverses on the third-year
anniversary, some or all the issued shares will be returned by the
Investment Manager, and if outperformance fully reverses, the
Investment Manager will receive nothing.
Performance fees are accounted for under IFRS 2 Share Based
Payments in the Company's Interim and Annual Reports. Please refer
to the Company's website for a copy of the latest Annual Report for
further details. However, it is believed that recognising
performance fee charge and subsequent clawback on a liability basis
i.e. divergent from IFRS 2, better represents the related economic
impacts on the Company's NAV and is more informative to investors.
Therefore, performance fee charge and subsequent clawback, if
applicable, are recognised on a liability basis in the Company's
unaudited daily NAVs.
The Company awarded shares to the Investment Manager in
settlement of a performance fee during the years ended 31 December
2019, 31 December 2020 and 31 December 2021, and no performance fee
has been earned for the year ended 31 December 2022.
The clawback period in relation to the performance fee for the
year ended 31 December 2019 ended on 31 December 2022 and has
resulted in an entitlement to claw back 530,311 shares from the
Investment Manager. The NAV per share has been adjusted on this
basis (i.e. the number of shares in issue has been reduced by the
number being clawed back for the purpose of the calculation), and
the related impact of an increase of 1.66p per share has been
reflected in the unaudited NAV per share as at 30 December
2022.
The clawback periods in relation to performance fee for the
years ended 31 December 2020 and 31 December 2021 will end on 31
December 2023 and 31 December 2024, respectively. As at 30 December
2022, 100% clawback for both periods has been accrued, which has
resulted in total NAV improvement of GBP2.66m (3.49p per share) and
GBP0.22m (0.29p per share) respectively.
The combined effect of incorporating the clawbacks in the NAV
per share as at 30 December 2022 has been an increase of 5.44p per
share in total.
For and on behalf of the Board
Frostrow Capital LLP
Secretary
03 January 2023
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END
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