Investment Charges - Henderson Private Equity Investment Trust

 

Management Fee

With effect from 1 October 2010, to reflect the revised investment objective of the Company, the Manager received a fixed monthly fee of £70,000 per month for six months, following which the monthly fee reduced to £50,000 for the following eighteen months. All fees are quoted net of VAT and are payable quarterly in arrears.

On 1 October 2011, or earlier if deemed appropriate, the fixed monthly fee shall be reviewed taking into account the Manager’s workload and the status of the realisation of the portfolio at that time.

Performance Fee
The manager is entitled to a performance fee of 10% of any amounts available to be returned to Shareholders over the cash hurdle. The cash hurdle is an amount which must be returned to shareholders before a performance fee can be paid.
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