Proposed changes to expense arrangements

BACIT LIMITED
(a closed-ended investment company incorporated in Guernsey
with registration number 55514)

(the "Company")

24 November 2015

Proposed changes to expense arrangements

The Company announces a proposed change to the basis on which the operating expenses of BACIT (UK) Limited, the Company’s investment manager (the “Investment Manager”), are paid with effect from 1 January 2016.  The proposed change is subject to shareholder approval. 

The key features of the Company’s investment policy — that it will invest in underlying funds on a “gross return” basis, that it will invest up to one per cent. per annum of its net asset value in drug development projects and that it will donate one per cent. per annum of its net asset value to charities including the Institute for Cancer Research (“ICR”) — will remain unchanged.  Both the ICR and the managers of the underlying funds in which the Company currently invests are supportive of the proposed change. 

To date, neither the Investment Manager nor the BACIT investment management team have received a fee from the Company for their investment management services.  Under the proposed arrangements, the personnel costs and operating expenses of the investment management function will be covered by a new fee payable by the Company to the Investment Manager equal to 0.19% per annum of the Company’s net asset value.  It is not envisaged that the Investment Manager should make a meaningful profit from the fee.  Notwithstanding the proposed changes to the expense arrangements Tom Henderson will continue to provide his services as a director of the Company and as CEO of the Investment Manager free of charge. 

A circular, including a notice of an extraordinary general meeting of the Company to approve the proposed changes to the expense arrangements intended to be held at 9.30 a.m. on 11 December 2015 at the offices of Northern Trust International Fund Administration Services (Guernsey) Limited, Trafalgar Court, Les Banques, St Peter Port, Guernsey GY1 3QL will be sent to shareholders shortly. 

A copy of the circular, when published, be available on the Company's website at http://www.bacitltd.com. The Circular will also be submitted to the National Storage Mechanism and will be available for inspection at www.morningstar.co.uk/uk/nsm.  

Enquiries:

Northern Trust International Fund Administration Services (Guernsey) Limited

Tel:       [phone]