Chrysalis Investments, managed by Jupiter, has announced its intention to propose a new capital allocation policy to shareholders, involving a £100 million ($121.7 million) share buyback and a performance-fee revision.
Under the proposed policy, Chrysalis plans to repurchase up to 15% of its share capital until the allocated sum is depleted, subject to maintaining a £50 million cash reserve. Following the completion of the buyback, the firm aims to balance its capital between additional shareholder returns and portfolio investments.
In addition to the buyback proposal, Chrysalis also intends to distribute up to 25% of net cash profits on realizations. This forms part of its strategy to enhance shareholder value and provide returns on investments.
Moreover, a performance-fee revision is also being considered. The firm plans to lower the annual fee for its portfolio manager from 20% down to 12.5%. This change is expected to reduce operating costs and increase profitability for the firm.
These proposals are part of an ongoing shareholder consultation led by Chairman Andrew Haining. Shareholders will have the opportunity to review and vote on these proposals at the annual general meeting scheduled for no later than April 30, 2024.
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