Correction: Change of Depositary and Administrator

by Fundsmith | 06 December, 2017 10:58:32


Emerging Equities Investment Trust

Correction: Change of Depositary and Administrator

RNS Number : 5563Y
Fundsmith Emerging Equities Tst PLC
06 December 2017
 

The following replaces the change of depositary and administrator announcement released on Monday 4 December 2017 at 11:00 am under RNS number 2784Y. The annual depositary fee has been amended to 0.015% of net assets.

 

Fundsmith Emerging Equities Trust plc

(the "Company")

 

CHANGE OF DEPOSITARY AND ADMINISTRATOR

 

 

The Directors of the Company wish to announce the following changes of service providers:

 

Change of Depositary

 

With effect from 2 January 2018, Northern Trust Global Services Limited will be appointed, in place of State Street Trustees Limited, as depositary of the Company (the "Depositary") pursuant to a depositary agreement dated 30 November 2017 between the Company, the Depositary and the Company's Alternative Investment Fund Manager, Fundsmith LLP (the "Depositary Agreement").

 

The Depositary has delegated the custody and safekeeping of the Company's assets to The Northern Trust Company.

 

In general, the Depositary is liable for losses suffered by the Company as a result of its negligent or intentional failure to properly fulfil its obligations. The liability of the Depositary will not be affected by the fact that it has delegated safekeeping to a third party.

 

Under the terms of the Depositary Agreement, the Depositary is entitled to receive an annual fee of the higher of (i) £25,000; or (ii) an amount equivalent to 0.015% of the net assets of the Company. In addition, the Depositary is entitled to a variable custody fee which depends on the type and location of the custodial assets of the Company.  It is expected that the new fee arrangements will result in a reduction of the Company's ongoing charge ratio.1

 

The Depositary Agreement may be terminated upon 3 months' written notice from the Company to the Depositary or the Depositary to the Company.

 

1The Company's ongoing charge ratio is calculated by taking the Company's annualised ongoing charges, excluding exceptional items, and dividing by the average net asset value of the Company over the year.

 

Change of Administrator

 

With effect from 2 January 2018, Northern Trust Global Services Limited (the "Administrator") has been appointed, in place of State Street Bank and Trust Company, to provide fund accounting and other administration services to the Company pursuant to a services agreement dated 30 November 2017 between the Company, the Administrator and Fundsmith LLP (the "Fund Administration Agreement").

 

Under the terms of the Fund Administration Agreement, the Administrator is entitled to receive an annual fee from the Company of an amount equivalent to 0.03% of the net assets of the Company up to £500 million and 0.02% of the net assets of the Company over £500 million. 

 

The Depositary Agreement and the Fund Administration Agreement contain indemnities in favour of the Depositary and the Administrator respectively, excluding matters arising by reason of their negligence, intentional failure to perform their obligations under the relevant agreement or fraud.

 

Details of the fees and material terms of both the Depositary Agreement and the Fund Administration Agreement will be available to investors in the Company's investor disclosure document, which can be accessed on the Company's website www.feetplc.co.uk.

 

Enquiries:

 

Simon Godwin

Fundsmith LLP

Alternative Investment Fund Manager

0203 551 6339

 

Katherine Manson

Frostrow Capital LLP

Company Secretary

0203 709 8734

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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