Amendment to Investment Adviser fee structure

RNS Number : 5987G

The MedicX Fund Limited

23 November 2015

 



For immediate release

23 November 2015

MedicX Fund Limited

("MedicX Fund", "the Fund" or "the Company")

Amendment to Investment Adviser fee structure

The Board of MedicX Fund Limited (LSE: MXF) is pleased to announce that it has agreed to a proposal from Octopus Healthcare Adviser Ltd (the "Investment Adviser") to amend its investment adviser fee structure to the benefit of the Company's shareholders. The alteration to the fee structure, which applies to any fees payable on or after 1 October 2015, is designed to enhance shareholder value as the portfolio of the Company grows.

The Investment Adviser base fee payable under the agreement will be as follows:

Healthcare Property Assets	New fee structure*	Old fee structure
First £300 million	0.50%	0.75%
Between £300 million and £500 million	0.50%	0.65%
Between £500 million and £750 million	0.50%	0.50%
Between £750 million and £1 billion	0.40%	0.40%
In excess of £1 billion	0.30%	0.33%

*Subject to a minimum annual fee of £3.878 million or, if lower, the fee that would have been payable under the old fee structure until the consolidated property asset value reaches £782 million after which no minimum fee shall apply.

Under the new arrangements, the annual base fee payable to the Investment Adviser will be held at £3.878 million (being the current annualised value of the  base fee payable to the Investment Adviser) until such time as the value of the Company's property assets equals or exceeds £782 million at the end of a financial quarter (and provided always that if lower, the fee that would have been payable under the old fee structure shall instead be payable); thereafter, the new fee structure as set out above will apply with no minimum floor. This arrangement will enable the Fund to increase its property assets by approximately £217 million without any corresponding increase in the investment adviser fee.

The previous contract renewal term was three years, terminable by giving 12 months' notice prior to the end of the term. As part of the new arrangements, the renewal and notice terms have been changed to provide a rolling contract subject to the Company's ability to serve two years' notice at any time.

All other material terms and arrangements within the Investment Advisory Agreement with Octopus Healthcare Adviser Ltd remain unchanged. 

David Staples, Chairman of MedicX Fund, said: "We are very pleased to have agreed these improved terms with the Investment Adviser. The new fee arrangements will bring benefits to shareholders' total return by enhancing future earnings and enabling the Fund to meet a key investment objective of increasing net income over time to support a rising dividend and providing capital growth."

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For further information please contact:

MedicX Fund                                                                  [phone]

David Staples, Chairman

Octopus Healthcare                                                        [phone]

Mike Adams, Chief Executive Officer

Buchanan                                                                      [phone]

Charles Ryland/Vicky Watkins

Information on MedicX Fund Limited

MedicX Fund Limited ("MXF", "MedicX Fund", "the Fund" or "the Company", or together with its subsidiaries, the "Group") is the specialist primary care infrastructure investor in modern, purpose-built primary healthcare properties in the United Kingdom, listed on the London Stock Exchange, with a portfolio comprising 147 properties.

The Investment Adviser to the Company is Octopus Healthcare Adviser Ltd, which is authorised and regulated by the Financial Conduct Authority and is a subsidiary of the Octopus Healthcare Group.  The Octopus Healthcare Group is a specialist investor, developer and manager of healthcare properties with 38 people operating across the UK.

The Company's website address is www.medicxfund.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website), nor the contents of any website accessible from hyperlinks within this announcement, are incorporated into, or forms part of, this announcement.

 

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