Investment Charges - Henderson Diversified Income Limited

 

Management Fee
The management fee is calculated and paid quarterly in arrears at the rate of 0.75% per annum of the net chargeable assets of the Company.
Performance Fee

A performance fee is payable if during the Company’s financial year, the Company’s total return per ordinary share exceeds the hurdle return for the year. The fee payable is 15% of such excess performance subject to a cap on total fees (both base fee and performance fee) of 1.75% of the Company’s net assets in any financial year. The hurdle return is the total return over the financial year of three month sterling LIBOR* plus 1.25%. Any prior year underperformance must be made up before a fee can become payable.

*LIBOR is the London Interbank Offered Rate, the rate at which UK banks lend to each other.

Ongoing charges, excluding Performance Fee

Morningstar calculates all expenses for the financial year, consisting of management fees, performance fees, directors' fees, administration fees, custody fees, audit fees, marketing fees, loan interest, tax, restructuring costs and all other expenses given in the Statement of Total Return and notes in the Report and Financial Statements. They subtract performance fee, restructuring costs, transaction costs, compensation scheme expenses and trail commission then calculate the average daily net assets on a cum fair basis, then divide the total expenses by the average daily net assets and multiply the resulting figure by 100 to arrive at this ratio.

Please note, not all companies have yet adopted ‘ongoing charges’ as the methodology in their Annual Report and Financial Statements. This may mean there are differences between the charges shown on our factsheets and website and the TER shown in the Annual Report.

 

Other Investment Charges


Stamp Duty on Share Purchases

Stamp duty is a government tax on the purchase of shares and as investment trusts are listed companies, it is payable when buying their shares.

Rate

The current rate is 0.5% of the value of the purchase (also known as the ‘consideration’), not including any transaction or dealing charges which may be payable.

Payment

When using a share dealing service, the stamp duty charge will be added to the cost of your purchase (along with any trading charges or other levies) to give a ‘total net payable’. The share dealing service will then account for the tax to HMRC.

Sales

Stamp Duty is not payable on the sale of shares although other taxes may apply, for example Capital Gains Tax (CGT). Paying of CGT is dependent on a number of factors including your personal tax circumstances, the length of time you have held the shares, and the amount of the gains/losses you have made in a given tax year.

Share Dealing Services

You can choose from a number of Share Dealing Services to buy and sell your investments.

Shares can usually be bought and sold by post, over the telephone or online. Online trading is significantly cheaper in comparison to other channels, although prices do vary from provider to provider. With most services you can choose to invest in one lump sum or provide set investments on a regular monthly basis. Henderson has a number of partners who provide services, or a full list can be found at www.apcims.co.uk