What are the management fees paid to the DUET management companies?
Under the terms of the constitutions of DUET1, DUET2, DUET3 and DIHL and the Management Deeds entered into with RE1 and RE2, respectively, a Base Fee and, potentially, a Performance Fee are payable by DUET1, DUET2, DUET3 and DIHL to RE1 and RE2 respectively. The Base Fee is calculated as 1% per annum of DUET’s market capitalisation after adding commitments to invest and any external debt and then deducting uncommitted cash on the balance sheet. A Performance Fee may also be payable in the event that the DUET accumulation index outperforms the S&P 200 Industrials Accumulation Index measured over half yearly periods. The performance fee is 20% of the amount of the net out-performance. This management fee structure aims at ensuring that each manager’s interests are aligned with those of DUET’s stapled security holders, namely through security price performance.
