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Amendment to Custodian Capital Limited Investment Management Agreement

Amendment to Custodian Capital Limited Investment Management Agreement

Mattioli Woods plc (“the Company” or “the Group”) the specialist wealth management and employee benefits business, announces that the Investment Management Agreement (“IMA”) between its subsidiary Custodian Capital Limited (“Custodian Capital”), and Custodian REIT plc (“Custodian REIT”) have been amended following the end of its three year term. In light of the performance of Custodian Capital, the Board of Custodian REIT has agreed a further three year term with 12 months’ subsequent notice to Custodian Capitals ongoing engagement as external discretionary fund manager from 1 June 2020.

The Board believes that this is in the best interests of the Company’s shareholders for the following reasons:
  • Another three year term provides Custodian Capital with security of tenure and allows further investment in the dedicated systems and people providing its services under the IMA;
  • The fee changes will be beneficial to investors in Custodian REIT particularly where NAV exceeds £750 million, by reducing Custodian REIT’s ongoing charges ratio and increasing its dividend capacity; and
  • The Board of Custodian REIT acknowledges the demands which an increased Corporate Governance regime, including environmental, social and governance (“ESG”) reporting, is placing on Custodian Capital.

Ian Mattioli, Chief Executive of the Company and Non-Executive Director of Custodian REIT, commented:

“The Board of Custodian REIT has been pleased with the performance of Custodian Capital as the Investment Manager, particularly the timely deployment of new monies on high quality assets, and is confident that they will successfully navigate the fund through the current market uncertainty caused by the COVID-19 pandemic. The revised IMA terms will secure both further cost reductions for our clients and other investors in Custodian REIT with NAV growth and an important long-term revenue stream for the Group.”

The full statement can be read here.