Services and fees

Investment Manager

New Energy Solar Manager Pty Limited is the Investment Manager of New Energy Solar.

The Investment Manager is responsible for executing the strategy of the New Energy Solar business in accordance with the terms of the Investment Management Agreement.

The Investment Manager has many arrangements in place to access necessary skills and expertise. The Investment Committee supports the Investment Manager in the execution of the investment strategy by providing advice and input on specific transactions and industry trends.

The following fees are charged by the Investment Manager:

  • Base Management Fee – for the investment management of the New Energy Solar business; and
  • Acquisition and Disposal Fee – for acting as advisor on the purchase or sale of the underlying assets of the New Energy Solar business.

Commencing from 1 July 2018, the Investment Manager introduced a sliding scale to its Base Management Fee and Acquisition and Disposal Fee as set out in the following table.

Revised fees

Enterprise Value Base Management Fee
(% of Enterprise Value)
Acquisition and Disposal Fee
(% of Purchase Price or Net Sale Proceeds)

Less than or equal to A$1.0 billion

0.70%

1.50%

Greater than A$1.0 billion to A$2.0 billion

0.55%

0.90%

Greater than A$2.0 billion

0.40%

0.40%

Note:
-  All revised fees shown in the table above exclude GST and apply from 1 July 2018.

Enterprise Value (EV) is calculated as the total of New Energy Solar’s market capitalisation, external borrowing, debt or hybrid instruments issued by New Energy Solar. The revised fees are applied on a marginal basis to each EV band. For example, the revised Base Management Fee for an EV of A$1.5 billion would be A$9.75 million (excluding GST) per annum, which is the sum of (A$1.0 billion multiplied by 0.70%) plus (A$500 million multiplied by 0.55%).

The Investment Manager has proposed this revised fee structure because it reflects the economies of scale available as the New Energy Solar business grows and which it is able to pass onto New Energy Solar securityholders in the form of lower management fees. The reduction in management fees is achieved by a voluntary waiver of fees by the Investment Manager.

This waiver is dependent on the continuation of existing investment management arrangements and no change, or proposed change, in the management or governance of New Energy Solar.

Responsible Entity

Walsh & Company Investments Limited is the Responsible Entity of the New Energy Solar Fund (Fund).

The Responsible Entity is responsible for the overall management of the Fund, including the determination of its strategic direction with the aim of increasing securityholder wealth through performance of the Fund.

The Responsible Entity will charge a responsible entity fee for the operation of the Fund of 0.08% per annum of the gross asset value of the Fund (exclusive of GST).

Other expenses

Fees and costs associated with administration of New Energy Solar, which are reimbursed to the Responsible Entity and/or Investment Manager by the business include registry fees, leasing, tax, custodian, valuation, legal, travel, accounting and audit fees. These expenses are estimated at 0.22% per annum of the net asset value of the New Energy Solar business (exclusive of GST).