THE LAW DEBENTURE CORPORATION p.l.c.
MANAGEMENT AGREEMENT WITH HENDERSON GLOBAL INVESTORS LIMITED
The Law Debenture Corporation p.l.c. has today executed a Supplemental
Agreement to its Management Agreement with Henderson Global Investors Limited
("Henderson") amending, with retrospective effect from 1 April 2011, the fee
basis by which the Corporation pays Henderson to manage its investment
portfolio.
The basis for the management fee will now be expressed as a percentage of the
value of the net assets of the Law Debenture Group (excluding the net assets of
the independent fiduciary services business), calculated on the basis adopted
in the audited financial statements of the Corporation. This produces a lower
base figure on which the fee is calculated - previously the calculation was
based on the value of the investment portfolio. However, the percentage amount
will increase from 0.25% per annum to 0.30% per annum. Overall, this means that
the total fee payable to Henderson will increase. Had the new basis been in
force during the year to 31 December 2010, the total fee payable to Henderson
would have been approximately 10% higher than was reported in the accounts.
The Supplemental Agreement also reduces the notice period required by either
party to terminate the Management Agreement from 12 months to six months.
The management fee was last increased in 1999.
The Corporation believes that the investment management fee it will now pay to
Henderson remains one of the most competitive in the investment trust sector.
27 June 2011
Issued by the Company Secretary, The Law Debenture Corporation p.l.c., Fifth
Floor, 100 Wood Street, London EC2V 7EX (tel: 020 7696 5285).
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