Scottish Oriental - Investment Management Agreement
18/07/2024 09:18
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240718:nRSR9280Wa&default-theme=true 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 (mailto:rns@lseg.com) or visit www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy) . END AGREAPXPFFKLEEA