Following the announcement in February that Close Venture Management had taken over the management of the Murray VCT portfolio, the board of Murray VCT4 has decided to stay with Murray Johnstone.
The failed management buyout of part of the Aberdeen group’s private equity and investment business by its senior executives, which was abruptly terminated at the end of September 2004, caused each of the Murray VCT boards (as they are in any event required to do) to review Murray Johnstone’s performance and to consider, as they should, alternatives available from other service providers.
In March this year the boards of all four Murray Johnstone VCTs (Murray VCT, Murray VCT 2, Murray VCT 3, and Murray VCT 4) decided they were going to look for a new manager and Close Venture Management was to take over, but the board of VCT 4 has now decided against this decision.
Murray VCT 4 has entered into a new management and administration deed with Murray Johnstone, which confirms Murray Johnstone’s continuing appointment for the portfolio management of the fund. The notice of termination served on Murray Johnstone, which was to expire on 8 August 2005, has now been withdrawn.
Key features of the new management and administration deed with Murray Johnstone include: the new management and administration deed operates for an initial period to 31 August 2006 and is thereafter able to be terminated by three months’ notice given by either the fund or Murray Johnstone. The fund will pay to Murray Johnstone a performance-related fee, which is subject to a minimum amount being payable (the minimum amount is based on a gross assets test or a net assets test.) Murray Johnstone is also entitled to receive an annual administrative and secretarial fee of £50,000 per annum.