LONDON (Alliance News) - Juridica Investments Ltd on Monday said it aims to reduce company costs by USD900,000 in 2016, following a review of its cost structure.
The cost measures include a reduction in the annual director fees to USD285,000, which is a 45% cut on those paid in 2015, reduced expenses for directors, agreement on a fixed audit fee of USD150,000 for 2016, and a reduction in the aggregate fees payable to brokers to USD100,000 from USD250,000.
On top of this, the investment firm, which provides funding for corporate litigation, said it has entered into an amendment agreement with its asset manager in order to provide a simplified fixed fee structure for fees payable to the asset manager by Juridica.
In prior years, Juridica would pay its asset manager a rate of 2% of Juridica's adjusted net asset value at the end of each year. Going forwards, Juridica will pay a fixed annual management fee of USD3 million for 2016 and USD1.8 million in 2017. The 2016 fee is 33% lower than the amount estimated to have been payable under the previous 2% rate.
In the event that management fees exceed 2% of the company's adjusted net asset value, any overpayment to the asset manager will be deducted from future management fees.
Moreover, Juridica said it will propose a resolution at its next annual general meeting to remove the requirement for the company to table a winding-up proposal at a general meeting in November and every three years thereafter. It said the requirement is potentially costly to the company.
Shares in Juridica were trading up 1.8% at 46.30 pence on Monday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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