Mattioli Woods PLC Amendment to Investment Management Agreement (9393G)
June 02 2017 - 1:00AM
UK Regulatory
TIDMMTW
RNS Number : 9393G
Mattioli Woods PLC
02 June 2017
2 June 2017
Mattioli Woods plc
("Mattioli Woods", "the Company" or "the Group")
Amendment to Custodian Capital Limited Investment Management
Agreement
Mattioli Woods plc (AIM: MTW.L), the specialist wealth
management and employee benefits business, announces that the terms
of the Investment Management Agreement ("IMA") between its
subsidiary, Custodian Capital Limited ("CCL"), and Custodian REIT
plc ("Custodian REIT") have been amended following expiry of the
IMA's initial three year term.
In light of the positive performance of Custodian REIT since its
admission to trading on the London Stock Exchange in 2014
("Admission"), the Company has agreed a further three year term
with 12 months' notice to CCL's ongoing engagement as external
discretionary fund manager from 1 June 2017. Fees payable to CCL
under the IMA have been amended to include:
-- A step down in the property management fee from 0.75% to
0.65% of net asset value ("NAV") applied to NAV in excess of GBP500
million; and
-- A step down in the administrative fee from 0.125% to 0.08% of
NAV applied to NAV between GBP200 million and GBP500 million and a
further step down to 0.05% of NAV applied to NAV in excess of
GBP500 million.
All other key terms of the IMA remain unchanged.
The Board considers these amendments to the IMA to be in the
best interests of the Company's shareholders because:
-- Another three year term provides CCL with security of tenure
and allows further investment in the dedicated systems and people
providing its services under the IMA; and
-- Fee changes will be beneficial to clients of the Company who
are investors in Custodian REIT, particularly where NAV exceeds
GBP500 million, by reducing Custodian REIT's ongoing charges ratio
and increasing its dividend capacity.
Ian Mattioli, Chief Executive of the Company and Non-Executive
Director of Custodian REIT, commented:
"The Board of Custodian REIT has been delighted with the
performance of CCL as Investment Manager since Admission,
particularly CCL's ability to deploy new monies on a timely basis
on high quality assets, securing the earnings required to fully
cover Custodian REIT's target dividends. The revised IMA terms
secure both an immediate cost reduction for our clients who are
invested in Custodian REIT and an important long-term revenue
stream for the Group."
- Ends -
For further information please contact:
Mattioli Woods plc
Ian Mattioli MBE, Chief
Executive
Nathan Imlach, Chief Financial Tel: +44 (0) 116 240
Officer 8700
www.mattioliwoods.com
Canaccord Genuity Limited
Sunil Duggal, Investment Tel: +44 (0) 20 7523
Banking 8000
Andrew Buchanan, Corporate
Broking
www.canaccordgenuity.com
Media enquiries:
Camarco
Ed Gascoigne-Pees Tel: +44 (0) 20 3757
4984
www.camarco.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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