Fees
The fees and costs which are applied in the management of your investment include:
Manager Base Fee
Babcock & Brown Power Management Pty Limited (BBPM), a wholly owned subsidiary of Babcock & Brown, is the Manager of both Babcock & Brown Power Limited (BBPL) and Babcock & Brown Power Trust (BBPT).
Under the BBPL Management Agreement, Quarterly fees of 1% p.a. of Net Investment Value, split between BBPL (0.8% p.a.) and BBPT (0.2% p.a.) are payable to the Manager less, in the case of BBPT, the amount of any remuneration payable to BBPS and Responsible Entity.
For more detail on the Manager Base Fee, refer to page 75 of Babcock & Brown Power's Prospectus which can be downloaded by clicking here. The Base Fee for FY2009 has been waived and is under review in relation to FY2010.
Manager Incentive Fee
Under the BBPL Management Agreement, there may also be an entitlement to an incentive fee payable yearly and related to the relative performance of Babcock & Brown Power.
The incentive fee is calculated yearly as 20% of the amount (if any) of excess return of Babcock & Brown Power Stapled Securities (as measured by the Stapled Security Accumulation Index, an index formulated by the Manager to measure the accumulated market value of Stapled Securities) over the S&P/ASX 200 Accumulation Index in a Financial Year
The Manager's incentive fee is calculated in respect of a financial year at the end of that year (Relevant Year) and payable in three equal instalments. The first instalment is immediately payable. The second and third instalment are resepectively due and payable as at 30 June of the two financial years after the Relevant Year.
For more detail on the Manager Incentive Fee, refer to page 75 of Babcock & Brown Power's Prospectus and Disclosure Statement which can be downloaded by clicking here.