Finally, the details as in Note 17 of CTN Financial Report.
NOTE 17: INVESTMENT MANAGER
The Company has appointed the Investment Manager, Contango Funds Management Limited, pursuant to an Investment Management Agreement.
During the 2017 financial year, the Company appointed and subsequently ceased arrangements with a second manager, OC Funds Management Pty Limited, via Copia Investment Partners Limited (OCFM). OCFM was entitled to a management fee 0.8% per annum (excluding GST) and a performance fee, calculated quarterly, of 20% of the value by which the portfolio investment performance exceeds the S&P/Small Ordinaries Accumulation Index, subject to a high watermark and positive return for the preceding 12 month period. The Company has also agreed to pay OCFM a termination fee totalling $1,046,250 payable quarterly until March 2022. During the 2017 financial year, the Company paid OCFM fees of $71,723. No performance fee was payable.
The Investment Manager is entitled to a management fee of: 1.25% per annum (excluding GST) for the Company's portfolio valued at less than or equal to $200 million; plus 1.00% per annum (excluding GST) on the increment of the Company's portfolio valued above $200 million.
Until March 2022, in respect of the above management fee: the Investment Manager has agreed to forgo a management fee on the proportion of the portfolio that was transferred to the Investment Manager from OCFM relative to the entire portfolio value at the time of transfer; the $200 million hurdle is adjusted down by the proportionate value of the portfolio transferred from OCFM and in respect of which the Investment Manager is not receiving a fee.
The Company has agreed to pay the Investment Manager the performance fee that would have otherwise been payable to the OCFM on the proportion of the portfolio that was transferred from OCFM to the Investment Manager.
For the 2017 financial year, the Company paid to the Investment Manager management fees of $2,431,618. No performance fee was payable.
CTN Price at posting:
96.0¢ Sentiment: None Disclosure: Not Held
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