Amendments to Management Fee Arrangements

To:                  PR Newswire

From:              Strategic Equity Capital PLC

LEI:                 2138003R5GB8QZU2G577

Date:               10 January 2018

Amendments to Management Fee Arrangements

The Board of Strategic Equity Capital plc (the “Company”) is pleased to announce that it has reached agreement with GVQ Investment Management Limited (“GVQIM”), the Company’s investment manager, for the management fees to be amended as follows with effect from 1 January 2018: 

• The basic management fee (the “Management Fee”) has been amended from the lower of 1 per cent. of the Company’s net asset value (“NAV”) and 1 per cent of the Company’s market capitalisation, to 0.75 per cent. of the Company’s NAV. 

• The performance fee (“Performance Fee”) has been reduced from 15 per cent. to 10 per cent., measured over rolling 3 year periods ending on 30 June each year by comparing the NAV total return per share over a performance period against the total return performance of the FTSE Small Cap (ex Investment Companies) Index. 

• The cap of 1.75 per cent. of NAV which used to apply to the Performance Fee has been abolished and has been replaced by a cap on the total fees payable to GVQIM:

The aggregate amount of the Management Fee and the Performance Fee in respect of any financial year shall not exceed 1.4 per cent. of the NAV of the Company at the relevant financial year end (the “Revised Cap”) (provided always that in calculating such NAV, no account shall be taken of any accrued performance fee earned in that period as a liability of the Company). 

• There is now no provision for any Performance Fee in excess of the Revised Cap to be ‘carried forward’.

All other provisions relating to the calculation of the Management and Performance Fees (including the high watermark) remain unchanged.

For the purposes of the Listing Rules of the Financial Conduct Authority, GVQIM as the Company’s investment manager, is a related party of the Company and the amendments as set out above fall within Listing Rule 11.1.10R, and therefore do not require the approval of shareholders.

Richard Hills, chairman of Strategic Equity Capital plc, said:

‘I am delighted that we have concluded our discussions with GVQIM on fee arrangements.  The fee amendments bring Strategic Equity Capital’s fees closer in line to the smaller company peer group, whilst recognising the specialist, focused nature of GVQIM’s investment approach.’

Enquiries:

Richard Hills (Chairman)                                       0131 538 1400

PATAC Limited (Secretary)                                   0131 538 1400

Canaccord Genuity Limited                                   020 7523 8000

Andrew Zychowski

Lucy Lewis

Denis Flanagan