Fees & Charges
Management and administration
Details of the management, administration, monitoring, arrangement and performance fees charged by ISIS EP LLP (“the Manager” or “ISIS”) and co-investment arrangements are shown in the “Report of the Directors” section of the Company’s Annual Report and Accounts which are available in the “Report and Accounts” section on this web site. A summary of the fees and charges is shown below.
Annual running costs
Annual running costs, including fees payable to ISIS, Directors’ fees, professional fees and the costs incurred by each Company in the ordinary course of business (but excluding any performance fees payable to ISIS and irrecoverable VAT), are capped at 3.5 per cent of the Company’s net assets, any excess being met by ISIS by way of reduction in future management fees.
ISIS is paid an annual management fee equivalent to 2.0 per cent of the Company’s net assets which is paid quarterly in arrears.
The total expense ratio as at 30 September 2011 was 2.44 per cent. This percentage is stated with reference to the average total shareholder funds over the last financial year.
Performance fees
A performance fee will not be payable to the Manager until the total return on shareholders’ funds exceeds an annual threshold of base rate plus 2 per cent calculated on a compound basis. To the extent that the total return exceeds the threshold over the relevant period then a performance fee will be paid to the Manager of 10 per cent. The amount of any performance fee which is paid in an accounting period shall be capped at 5 per cent of shareholder’s funds for that period.