Since the 2017 merger of Pengana Capital Group and Hunter Hall, the management fees for the funds now known as the Pengana Axiom International Ethical Fund (APIR: HOW0002AU) and the Pengana Axiom International Ethical Fund (Hedged) (APIR: HHA0002AU) (“Funds”) have been significantly reduced and both the performance fees and the expense recovery eliminated.
Our intention is now to further share the benefit of any increase in assets under management, and the profitability of these Funds, with our investors as these Funds start to benefit from economies of scale.
As at the 31st of January 2022, the combined assets of these two Funds was approximately $437m. When the Funds’ combined assets exceed $500m at an assessment date (28th February and 31st August each year), we will reduce the management fee for both Funds by 10bps, and continue to reduce the management fee by 10bps for each additional $100m in combined assets under management at each assessment date, until such time as the management fee is reduced to 0.95%.
A worked example of this is illustrated below.
The Funds’ combined assets under management will be assessed on the 28th of February and the 31st of August each year and should the increase in assets exceed the threshold for adjustment, the management fee reduction will be implemented as soon as practically possible thereafter. Once a reduction to the management fee has been implemented, the reduction will remain in place even if assets subsequently fall back below an adjustment threshold.
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