Jupiter UK Growth Investment Trust PLC (the 'Company')
Increase in performance fee high watermark
RNS announcement reference 6608S - 21 March 2016
In the above announcement relating to the change in name and investment policy of the Company that became effective at the general meeting of shareholders on 18 April 2016, the Board advised that the high watermark used to calculate any future entitlement to a performance fee for the manager would be reset in order to fairly incentivise the new portfolio manager pursuant to the company's new investment strategy. At the same time the base annual management fee payable by the Company was reduced from 0.80 per cent. to 0.50 per cent. of adjusted net assets (reducing on a tiered basis to 0.40 per cent. of net assets with growth in the Company's asset basis). Furthermore an overall cap on fees payable to the manager was introduced of 2 per cent. of adjusted net assets.
The turbulent market conditions in the immediate aftermath of the Brexit referendum resulted in an estimated NAV per share of 265.12p as at 30 June 2016. Rather than adopt this NAV as the new high watermark for the current and future accounting periods for the purposes of any performance fee accrual, the Board has agreed with the manager that it would be appropriate to adopt the higher estimated NAV of 285.80p as at 29 July 2016 as its new high watermark for these purposes. This change is considered to be in the interests of all shareholders and has been implemented with immediate effect.
This change results in an immediate uplift in the estimated NAV per share of ca. 0.28 per cent., which has been reflected in the estimated NAV published as at 23 September 2016.
The Manager estimates that the total return on the NAV per share will now need to outperform the total return on the Company's benchmark, the FTSE All Share Index (which is increased for these purposes by a hurdle of 2 per cent.), by a further 3.5 per cent.* in the current financial year in order for a performance fee to accrue (*as at 20 September 2016).
As at close of business on 23 September the estimated NAV per share, cum income, was 299.31p, representing an increase of 12.9 per cent. since 30 June 2016. In the meantime, the total return on the FTSE All Share Index was +7.9 per cent.
For further information, please contact:
Head of Investment Trusts
Jupiter Asset Management Limited, Company Secretary
020 3817 1496
This information is provided by RNS