Edinburgh-based investment manager RM Capital Markets will now be entitled to a fee of 0.875% of the prevailing net asset value in the event that the prevailing NAV is up to or equal to £250mln.
If the NAV is between £250mln and £500mln the fee will be calculated at 0.800% and if and when NAV rises above £500mln the fee falls to 0.750%.
The previous management fee was calculated at the rate of 0.875% of the prevailing NAV, or 0.5% if NAV was less than £75mln.
NAV ended December at £119.5mln, up from £95.7mln over last year, RMDL said in its results last month.
Also, the agreement now obliges the investment manager to apply up to 10% of the management fee received quarterly subscribing and/or purchasing shares in the trust, with a minimum of £10,000, starting in the current quarter.
The appointment of the investment manager is now also subject to 12 months’ notice provided such notice cannot be given earlier than 1 April 2023.
Norman Crighton, chairman of the trust’s independent board, said: “We have a strong belief in RMDL’s investment proposition and RM Funds’ management given its successful track record of delivery.
“These changes to the IMA will reduce the ongoing charges for shareholders as the portfolio net asset value grows while RM Funds’ commitment to continue to purchase shares further aligns its interests with shareholders.”
Chief investment officer James Robson, founder of RM Capital Markets, welcomed the further continued alignment with investor interests, noting that the manager’s currently owns 1.2mln shares in RMDL.