Scottish Oriental Smlr Co Tst PLC Investment Management Agreement
18 July 2024 - 6:18PM
RNS Regulatory News
RNS Number : 9280W
Scottish Oriental Smlr Co Tst PLC
18 July 2024
THE SCOTTISH
ORIENTAL SMALLER COMPANIES TRUST PLC
LEI: 213800DBSW6WJXKNXL87
Investment
Management Agreement
Following the change to the benchmark index
used as the basis for calculating the performance fee of the
Company's Alternative Investment Fund Manager, First Sentier
Investors (UK) Funds Limited (the "AIFM"), on 31 July 2023, the Board has
agreed the following further key changes with the AIFM in respect
of the calculation of the performance fee:
· The
hurdle rate (i.e. the level of outperformance of the benchmark
index at which a performance fee may be payable) will be reduced
from ten per cent. to two per cent.
·
Periods of underperformance will now be accumulated and
applied against potential future performance fees.
· If
the total fee payable to the AIFM (base fee plus any performance
fee) in a year would be in excess of the cap of one and a
half per cent, such excess will be carried forward and may be paid
in future periods of positive performance where a performance fee
is otherwise payable.
· In
addition, a high watermark provision has been introduced, whereby a
performance fee will only be paid when the Company's share price
exceeds the level where a performance fee was previously paid
(with the initial high water mark being the Company's share price
as at 1 September 2023).
The Board believes that this
structure is an appropriate way to incentivise and reward the AIFM
to deliver consistent positive returns above those available using
a passive index model, whilst also allowing for a competitive base
management fee.
The AIFM is a related party and this
change constitutes a smaller related party transaction under
Listing Rule 11.1.10R. No other changes are being made to the
management arrangements at this time.
Juniper
Partners Limited
|
Company
Secretary
|
Enquiries: 0131 378 0500
|
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact
rns@lseg.com or visit
www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our
Privacy
Policy.
END
AGREAPXPFFKLEEA
Scottish Oriental Smalle... (LSE:SST)
Historical Stock Chart
From Jun 2024 to Jul 2024
Scottish Oriental Smalle... (LSE:SST)
Historical Stock Chart
From Jul 2023 to Jul 2024