UTILICO EMERGING MARKETS TRUST PLC

Regulatory Filings • Mar 25, 2021

National Storage Mechanism | Additional information

RNS Number : 4762T

Utilico Emerging Markets Trust PLC

25 March 2021

25 March 2021

UTILICO EMERGING MARKETS TRUST PLC

(LEI Number: 2138005TJMCWR2394O39)

Changes to Investment Management Fee Arrangements

The Board of Utilico Emerging Markets Trust plc ("UEM" or the "Company") announces that, following a review, the Company has agreed with ICM Investment Management Limited and ICM Limited (together the "Joint Portfolio Managers") that, with effect from the start of UEM's new financial year on 1 April 2021, the performance fee will be discontinued and the investment management fee payable to the Joint Portfolio Managers will be amended from 0.65% per annum of the Company's net asset value ("NAV") to a tiered structure as follows:

·      1.0% of NAV up to and including £500m;

·      0.9% of NAV exceeding £500m up to and including £750m;

·      0.85% of NAV exceeding £750m up to and including £1,000m; and

·      0.75% of NAV exceeding £1,000m

The Board believes that the removal of the performance fee will result in a simpler and more transparent cost structure which will contribute to a stable ongoing charge.  Furthermore, the tiered investment management fee has the benefit of reducing rates at increasing NAV levels, allowing shareholders to benefit from the increasing economies of scale that a larger portfolio provides.  The existing fee arrangements (including any performance fee payable) will continue until the end of UEM's current financial year ending on 31 March 2021.

The Board is confident that the new structure will maintain a competitive ongoing charge and thereby help in attracting private wealth managers and retail investors.

The changes to the investment management fee arrangements constitute a smaller related party transaction under the Listing Rules issued by the Financial Conduct Authority.  The Company has obtained written confirmation from its Sponsor that the terms of such changes are fair and reasonable as far as the Company's shareholders are concerned.

Name of contact and telephone number for enquiries:

ICM Investment Management Limited                                 +44(0)1372 271486

Charles Jillings / Alastair Moreton

Montfort Communications

Gay Collins, Pippa Bailey                                                       +44(0)20 3770 7913

utilico@montfort.london

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