Inv Mgr's Contract & Other Cost Control Measures

RNS Number : 5746C

Qatar Investment Fund PLC

18 April 2013

 



18 April 2013

Qatar Investment Fund plc ("QIF" or the "Company")

Investment Manager's contract and other cost control measures

Shareholders will be aware that on 17 October 2012, the Board of the Company and its wholly owned subsidiary Epicure Qatar Opportunities Holdings Limited entered into a revised investment management agreement with its investment manager Epicure Managers Qatar Limited ("EMQL"), a wholly owned subsidiary of Qatar Insurance Company S.A.Q. (the "Revised Investment Management Agreement"), such agreement taking effect from 1 November 2012 but terminable immediately had the discontinuation resolution not been rejected by shareholders at the Company's AGM in November 2012. The Revised Investment Management Agreement is for a one year period expiring on 31 October 2013, with the same fee arrangements as those that were in place prior to the Revised Investment Management Agreement.

The Board is pleased to announce that it has reached in principle agreement with EMQL to enter into a new investment management agreement for a three year period from the date of termination of the existing investment management agreement on 31 October 2013, subject to agreeing the necessary terms and legal documentation, and obtaining any regulatory or other approvals as required.

The proposed revised fee arrangements commencing on 1 November 2013 are a reduced management fee of 1.05% per annum of the net asset value of the Company, calculated monthly and payable quarterly in arrears, with such management fee reducing further to 1.0% from 1 November 2015 for the final year of the agreement. There will be no change in the performance fee arrangements or any other material terms as exist currently.  

The lower management fee will reduce significantly the overall costs for the Company. Combined with other cost saving measures that have been recently implemented, the ongoing charges will fall below 2% of net asset value per annum based on the current size of the Company.

Nick Wilson, Chairman of the Company said:

"Following the tender offer in December 2012, the Board undertook a thorough review of all the Company's expenses and implemented a number of cost-cutting measures including renegotiating arrangements with several of our service providers. In addition to the reduction in ad valorem costs, we have achieved significant savings across a broad range of the Company's operating expenses."

For further information:

Qatar Investment Fund plc [phone]

Nick Wilson

Panmure Gordon [phone]

Andrew Potts

Maitland [phone]

William Clutterbuck/Robbie Hynes

 

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