Edge Performance VCT PLC Variation of Investment Management Agreement (2866G)

TIDMEDGC

RNS Number : 2866G

Edge Performance VCT PLC

04 August 2016

Edge Performance VCT plc (the "Company")

Variation of Investment Management Agreement

Under the investment management agreement between the Company and Edge Investment Management Limited (the "Investment Manager") dated 8 November 2013 (the "Investment Management Agreement"), the Investment Manager is responsible for all running costs of the Company in any financial year to the extent that those costs exceed 3% of the net asset value of the Company as at the end of that year.

In recent years, the net asset value of the Company has reduced by a significant amount, driven primarily by the level of dividends paid by the Company to shareholders (which have now exceeded GBP53 million in total since the Company began) and also by the impact which the continuing low interest rate environment has had on the Company's income.

Although the level of annual fees paid to the Investment Manager has decreased significantly over the same period, the Company's total annual running costs (including additional costs resulting from the creation of more share classes) have nonetheless come to represent an increasing proportion of the Company's net assets.

The board of directors of the Company (the "Board") has consequently concluded that it would be appropriate to vary the Investment Management Agreement such that the Investment Manager is responsible for all running costs of the Company in any financial year to the extent that those costs exceed 3.75% of the net asset value of the Company as at the end of that year.

The Board, having been so advised by the Company's sponsor, Howard Kennedy Corporate Services LLP, considers that the changes are fair and reasonable so far as the shareholders of the Company are concerned.

This variation of the Investment Management Agreement is a related party transaction pursuant to Listing Rule 11.1.10.

For further information, please contact:

Edge Investment Management Limited, Investment Manager: 020 7317 1300

The City Partnership (UK) Limited, Company Secretary: 0131 243 7210

This information is provided by RNS

The company news service from the London Stock Exchange

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August 04, 2016 07:13 ET (11:13 GMT)