NextEnergy Solar agrees cut to investment management fees

(Sharecast News) - NextEnergy Solar Fund has agreed a cut to its investment management fee structure following discussions with its investment manager, it announced on Thursday, resulting in an estimated annual saving of about �0.6m.

The London-listed firm said the reduced fee arrangement would take effect retroactively from 1 April, and would apply a blended basis for calculation, using an equal weighting of the fund's average quarterly market capitalisation and its published net asset value (NAV).

Previously, the fee was based solely on NAV.

Based on the closing share price on 1 April, the change represented a fee reduction of around 13%.

The board said the revised fee structure retained the same tiered percentages - 1% on assets up to �200m, 0.9% between �200m and �300m, and 0.8% above �300m - but applied them to the new blended base.

It said the new arrangement included a cap, ensuring that fees would not exceed the lower of the old or new structures.

The board added that the fee change reflected "constructive discussions", and was part of its broader efforts to enhance shareholder value.

NextEnergy Solar said it was also exploring strategic options in light of its persistent share price discount to NAV.

Under its articles of association, a discontinuation resolution would need to be put to shareholders after the fund's shares trade at an average discount greater than 10% over the financial year.

The board said it would consult major shareholders before bringing forward any proposals, with further details to be outlined in the circular ahead of its annual general meeting, scheduled for the second half of August.

At 1245 BST, shares in NextEnergy Solar Fund were down 0.14% at 71.1p.

Reporting by Josh White for Sharecast.com.