Fees & Charges
Management and administration
Details of the management, administration, monitoring, arrangement and performance fees charged by Gresham House Asset Management Limited (“the Manager” or “Gresham House”) 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 Gresham House, Directors’ fees, professional fees and the costs incurred by each Company in the ordinary course of business (but excluding any performance fees payable to the Manager and irrecoverable VAT), are capped at 3.5 per cent of the Company’s net assets, any excess being met by Gresham House by way of reduction in future management fees.
The Manager is paid an annual management fee equivalent to 2.5 per cent of the Company’s net assets which is paid quarterly in arrears.
The ongoing charges ratio as at 30 September 2017 was 2.7 per cent (2016: 2.9 per cent). This percentage is stated with reference to the average total shareholder funds over the last financial year.
A performance fee is payable to the Manager when the total return on net proceeds of the ordinary shares exceeds 8 per cent per annum (simple) on net funds raised. The performance fee payable in any one year is capped at 5 per cent of net assets.
To the extent that the total return exceeds the threshold, a performance fee (plus VAT) will be paid to the Manager of 10 per cent of the excess. No performance fee was payable for the year to 30 September 2018.