Manchester and London Investment Trust
plc
(the "Company")
LEI:
213800HMBZXULR2EEO10
02 September 2024
Amendment
to Management Fees
Relevant
Related Party Transaction
The Board
of Manchester and London Investment Trust plc announces a change in
the management fees payable to M&L Capital Management Limited
(the "Manager").
The Board
has agreed with the Manager a new tiered management fee replacing
the current fee arrangements, effective from 01 September 2024.
The new
fee arrangements do not include any performance fee or performance
related elements.
The
amendments to the fee arrangements are considered to be a relevant
related party transaction under UKLR 11.5.4R(1) and this
announcement is being made in accordance with UKLR
8.2.1R.
The Board,
which has been so advised by Winterflood Securities Limited,
considers that the amendments to the management fees are fair and
reasonable as far as shareholders are concerned.
Details of
the amendments to the management fee arrangements are set out
below.
Current fee arrangements
Base
Management Fee:
0.5% per
annum of the Company's Net Asset Value ("NAV").
Variable
Fee:
An uplift
of 0.25% of the NAV will be applied to the fee, should the
performance of the Company over the 36-month period to the
calculation date be above that of the Company's benchmark. Should
the performance of the Company over the 36-month period to the
calculation date be below that of the Company's benchmark, a
downward adjustment of 0.25% of the NAV will be applied to the
fee.
Risk
Management and Valuation Fee:
£59,000
per annum is payable to the Manager for risk management and
valuation services in its capacity as Alternative Investment Fund
Manager.
New fee arrangements
Tiered
Management Fee:
0.7 per
cent per annum of the NAV up to and including £750
million;
0.5 per
cent per annum of the NAV between £750 million and £1.5 billion;
and
0.3 per
cent per annum of the NAV above £1.5 billion.
There will
be no performance fee payable to the Manager.
Risk
Management and Valuation fee:
There will
be no change to the Risk Management and Valuation fee, however, the
fee will be adjusted annually in January by the UK Consumer Prices
Index ("CPI") with
the first increase being in January
2026 on the basis of the January
2026 CPI (percentage change over 12 months)
figure.
The Board
believes that the new fee structure offers a simpler and more
predictable arrangement, removes the unnecessary volatility in
ongoing charges for shareholders and allows the Manager to better
plan for the future and broaden the expertise of the management
team supporting the Company. It also addresses concerns raised by
proxy advisors and compliance departments over the variability of
the fee arrangements.
In
addition, the Board believes that the changes have the potential to
generate cost savings for shareholders in both the short and
long-term, in particular, if the Company were to see a material
increase in NAV.
For further information please
contact:
Manager
and Alternative Investment Fund Manager
M&L
Capital Management Ltd
ir@mlcapman.com
Company
Secretary
Link
Company Matters Ltd
Tel:
0333 300 1950