Deutsche Latin American Cos Tst PLC
25 June 2004
Deutsche Latin American Companies Trust PLC
25 June 2004
The Directors announce that the Company's Annual General Meeting will be held at
11.45 a.m. on Monday, 9 August 2004. The delay in publication of the annual
report follows discussions the Directors have had with the Company's investment
manager, DWS Investment Trust Managers Limited, in connection with the on-going
management of the Company. As a result of these discussions, provided
shareholders vote in favour of the continuation of the Company at the Annual
General Meeting, the following will be implemented:
New Portfolio Manager
Paul Rogers, who is head of Deutsche's Latin American Team, will take over as
the Portfolio Manager. His new aggressive approach will encompass a more active
allocation to smaller companies, tactical use of derivatives and the
incorporation of Latin American fixed income stocks as appropriate to achieve
outperformance. Paul will also seek more actively opportunities in the
peripheral markets of Colombia, Venezuela and Peru.
Performance Target with Option for Shareholders to Realise their Shares at NAV
less Costs
For the financial year to 28 February 2005, the Manager will have a target of
achieving growth in net asset value equal to the return on the MSCI EM Latin
America Index (on a total return basis) in sterling terms ('the Benchmark
Index') plus two percentage points.
For the financial year to 28 February 2006 and for each subsequent financial
year, the Manager will have a target of achieving growth in net asset value over
the two-year period to the end of the relevant financial year equal to the
return on the Benchmark Index plus two percentage points.
In the event that the Company fails to achieve the performance target for any
performance period, the Board will put proposals to shareholders at the next
Annual General Meeting which, if approved, would give them the right to realise
their shares in the Company at net asset value less relevant costs.
Annual Continuation Vote
The existing requirement for an annual continuation vote will remain in place.
Changes to Fee Arrangements
For the financial year to 28 February 2005 and for each subsequent financial
year, the base fee of 0.8% per annum will be reduced if the Manager
underperforms the Benchmark Index. This reduction will be 25% of the fees
otherwise due for the year for underperformance up to 2%, and 50% of the fees
otherwise due for the year for greater underperformance.
The performance fee payable to the Manager will be based on 20% of any
outperformance of the Benchmark Index plus two percentage points plus a further
six percentage points to reflect the historic underperformance which needs to be
made up. This replaces the existing arrangements for a fee payable on 20% of any
outperformance of the Benchmark Index.
The cap, which limits the aggregate of the basic fee and the performance fee to
1.8% of total assets less current liabilities in any year, will continue to
apply.
Changes to Manager's Notice Period
The existing management contract is terminable by either party on one year's
notice. The notice period will be changed to three months' notice, effective
from the date of the Annual General Meeting.
In the light of these proposed changes, the Board is recommending that
shareholders should vote for the Company to continue for another year as an
investment trust.
Dividend
In order to enable the dividend announced on 29 April 2004 to be paid on 2 July
2004, the Directors have accordingly resolved to pay it as an interim dividend
for the year ended 29 February 2004, and not as a final dividend as previously
announced. This will be paid to shareholders on the register at the close of
business on 4 June 2004.
Enquiries:
Richard Watkins 020 7659 6955
Chairman
John Murray 020 7545 0108
DWS Investment Trust Managers
David Benda 020 7621 5562
Close Brothers Securities
M Pope
Joint Company Secretary
25 June 2004
END
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