As a LIC, BTI's fee structure is pretty rubbish. Even for a PE style operator. Sliding management fee structure has some usefulness, but still a big chunk.
Not a lot of transparency about how the 8% performance fee hurdle is derived. Suspect it is a bit of a low bar. Also, the fee is payable on all gains (from zero) once the 8% hurdle is exceeded. That is pretty greedy in my books. Off the top of my head I can't recall another other PE firms I've looked at doing this.
Termination fee of 10%, while not unheard of, is still unappealing.
On the basis of the fee structure alone, I wouldn't touch BTI. However I acknowledge there are few available options to investors wanting to play a managed fund (either LIC or ETF) in this niche space.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
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