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Maven I&G 5

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
127tolmers
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Maven I&G 5

#290237

Postby 127tolmers » March 12th, 2020, 5:42 pm

A worrying precedent.

Nov 2019 Fund size £47.1m, NAV 37.4p, Fees increased from 1.6% to 1.75%

https://www.investegate.co.uk/maven-inc ... 23568384F/

Management and Administration Fees

On 1 June 2015, the Company entered into a revised Management and Administration Deed with the Manager. It was agreed that the base investment management fee payable would be 1.60% of the prevailing NAV of the Company, payable quarterly in arrears. The Manager also receives an administration fee of £86,000 (2018: £83,000) per annum, payable quarterly in arrears and subject to an annual adjustment to reflect any change in the retail prices index. More information on the current management and administration fees can be found in the Directors' Report in the Annual Report.

The Management Engagement Committee undertakes an annual review of the management contract and, following the confirmed re-appointment of Maven as the Investment Manager at its meeting in October 2019, the Committee recommended that the Board conduct a further review of the fees payable to the Manager. The Committee is aware that, as a result of the increasing complexity of completing and managing early stage investments under the VCT rules introduced by the Finance (No. 2) Act 2015, the Manager has substantially increased its number of offices around the UK and has recruited additional, specialist personnel to help source, transact and manage these new investments.

On the recommendation of the Committee, and in recognition of the more onerous obligations on the Manager resulting from the most recent amendments to the VCT regulations, the Board has agreed that the management fee should be increased by 0.15% of NAV per annum. The Board has further agreed that this increase will be implemented over a two year period with the base management fee increasing from 1.60% to 1.675% of NAV with effect from 1 December 2019, and then from 1.675% to 1.75% of NAV with effect from 1 December 2020.

Following this increase, the Company's management fee rate will continue to remain highly competitive in comparison to fees paid by other VCTs in the Company's peer group.



May 2015 Fund size £32.2m, NAV 41.7p, Fees increased from 1.5% to 1.6%

https://www.investegate.co.uk/maven-inc ... 05300657U/

Management and Administration Fees

In order to compensate Maven for additional fixed costs that it has committed to pay on behalf of the Company, with effect from 1 June 2015, the investment management fee payable to the Manager under the investment management agreement was increased to 1.6% (previously 1.5%) of total assets per annum and this has been confirmed independently as a fair and reasonable related party transaction so far as the Shareholders are concerned. In addition, VAT is no longer payable on performance and secretarial fees, and the Manager is pursuing the recovery of amounts previously paid. Based on the average fees paid during the three previous annual accounting periods, and excluding the potential recovery of any VAT paid previously, the net impact of these changes is that there will be a marginal reduction in the Company's total expense ratio.

barchid
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Re: Maven I&G 5

#290984

Postby barchid » March 15th, 2020, 1:13 pm

Tolmers
A good spot, thanks !
I hope to be at the Maven 3 agm next month, I guess they will be doing the same ?
Not to mention 1&4 !!

UncleEbenezer
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Re: Maven I&G 5

#291103

Postby UncleEbenezer » March 16th, 2020, 12:29 am

barchid wrote:Tolmers
I hope to be at the Maven 3 agm next month, I guess they will be doing the same ?
Not to mention 1&4 !!

The Mavens all have different fee structures (which was one reason for my choosing M5 back in ... whenever). So I wouldn't assume any readacross.


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