20 May 2015 15:49
BLACKROCK THROGMORTON TRUST PLC - Statement re Amendment to Management AgreementBLACKROCK THROGMORTON TRUST PLC - Statement re Amendment to Management Agreement
PR Newswire
London, May 20
BlackRock Throgmorton Trust plc Amendment to Management Agreement BlackRock Throgmorton Trust plc (the "Company") announces that the Directorshave agreed with the Company's manager, BlackRock Fund Managers Limited (the"Manager"), certain amendments to the fees payable under the InvestmentManagement Agreement (the "IMA"). The terms of the current IMA between the Company and the Manager provide forpayment to the Manager of: 1. a basic management fee, payable quarterly in arrear, of 0.7% per annum on the gross asset value of the Company's long only portfolio plus the gross value of the underlying equities, long and short, to which the Company is exposed through its CFD portfolio; and 2. a performance fee of (i) 12.5% of any outperformance of the net asset value total return (before management and performance fees and expressed as a percentage) over the benchmark index multiplied by (ii) the average value of the portfolio. The payment of a performance fee is subject to a cap of 2.0% of the average value of the portfolio if the NAV return over the annual performance period is zero or positive and 1.0% of the average value of the portfolio if the NAV return over the annual performance period is negative. Any excess performance fee over the capped amount for the annual performance period is neither paid nor carried forward. The changes agreed between the parties are: 1. The applicable percentage to be applied to the outperformance of the net asset value total return over the benchmark index shall be reduced from 12.5% to 10%; and 2. The performance fee cap in the event that the NAV return over the annual performance fee period is zero or positive, will be reduced from 2% to 1% of the average value of the portfolio. For the avoidance of doubt, all other fees payable to the Manager remainunaltered, including the 1% performance fee cap in the event of negative NAVreturn over the annual performance fee period. The amendments to the performance fee cap will take effect from 1 June 2015.The reduction in the performance fee percentage participation will take effectfrom 1 December 2015, the start of the Company's next financial year. The amendment of the fee payable to the Manager, who is a related party of theCompany under the Listing Rules, amounts to a smaller related party transactionas defined in Listing Rule 11.1.10. For further information, please contact: Simon WhiteBlackRock Investment Management (UK) Ltd
0207 743 5284