Scottish Oriental Smaller Companies | Charges

0.95

0.98

31/08/2024

Download the AIC ongoing charge methodology

Management agreement with First State Investments is terminable on one year notice. Management fee includes a base fee and a performance fee. The base fee should be 0.75% p.a. of its NAV payable quarterly in arrears. In addition, an annual performance fee may be payable to the Investment Manager. The total fee payable to the Investment Manager is capped at 1.5% p.a. of the NAV. The performance fee is based on the Share Price Total Return (SPTR) of the company, taking the change in share price and dividend together, over a three-year period. If the SPTR of the company exceeds the SPTR of the benchmark index (the MSCI AC Asia ex Japan Small Cap Index) over the three years' period plus 10% points, then a performance fee is payable to the Investment Manager. The objective of the performance fee is to give the Investment Manager 10% of the additional value generated for shareholders by such outperformance.

Yes

2

The hurdle rate has been reduced from ten per cent to two per cent.A high watermark provision has been introduced, whereby a performance fee will only be paid when the Company's share price exceeds the level where a performance fee was previously paid. If the total fee payable in a year would be in excess of the cap of one and a half per cent of total assets, such excess will be carried forward and may be paid in future periods of positive performance where a performance fee is otherwise payable.