Artemis rethinks VCT fees

29 October 2009 | By Hannah Stodell

Artemis has bowed to pressure to revise the fee arrangements implemented in March after the merger of its VCT and Aim VCT 2.

The UK Shareholders’ Asso- ciation heavily criticised the scheme, saying it favoured the fund firm and was not adequately explained to shareholders.

Artemis has since extended the first performance period used to determine fees from six months to September 30, 2009 to 24 months to March 31, 2011.

The firm will get an annual fee of 1.4 per cent of the VCT’s average net asset value. If a performance-related fee is earned over the 24-month period, the fee, along with the management fees, are capped at £2m. If no performance fee is earned in either of the first two performance periods, the base NAV for the third performance period will not be reset to the NAV from the end of the second period.

Artemis says the longer period will “allow the performance-related fee to take into account more fully the continuing poor economic climate and the instability of world markets, in particular the Aim market”.

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing