C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
/ 1 6 3
ADDITIONAL INFORMATION
(A)
Fees Payable to the Manager
Under the revised Code on Collective Investment Schemes (“CIS”) issued by the Monetary Authority of Singapore
(“MAS”) on 14 July 2015, where fees are payable to the Manager out of the deposited property of the Trust,
the justifications and methodology for each type of fees payable should be disclosed. The methodology for
computing the fees is disclosed in Note 1 of the audited financial statements for FY2015.
Management Fees
The Manager is entitled to receive a base fee and performance fee for the management of the Trust’s portfolio.
The payment for the total of base fee and performance fee is capped at 0.8% per annum of the Trust’s total
deposited property under the Clause 15.1.3 of the Trust Deed. The amount in excess of the fee cap will be carried
forward for payment in future financial years.
Base Fee
The Base Fee enables theManager to cover operational and administrative overheads incurred in themanagement
of the portfolio. The fee is computed at 0.5% per annum of the deposited property value in accordance with
Clause 15.1.1 of the Trust Deed. The fee is calculated at a percentage of asset value as the asset value provides
an appropriate metric to determine the resources for managing the assets.
Based on the Manager’s election, the fee is payable in cash, units or a combination of both. Under the Trust Deed,
the cash component of the base fee is payable monthly in arrears within 30 days of the calendar month while the
unit component of the base fee is accrued and issued within 30 days of the relevant financial quarter.
The issue price for the manager fees paid in units is determined based on the volume weighted average price for
a Unit for all the trades done on the Singapore Exchange Securities Trading Limited (“SGX-ST”) in the ordinary
course of trading on the SGX-ST for the period of ten business days (“10 days VWAP”) immediately preceding
the date of the Trust’s result announcement for the relevant quarter.
Performance Fee
The Manager’s performance is measured by the growth of distribution per unit (“DPU Growth Model”) of the Trust.
The performance fee under the DPU Growth Model is computed at 25% of the growth in DPU for such financial
year multiplied by the weighted average number of units in issue for such financial year. The DPU growth is
measured by the excess of DPU for such financial year to the highest DPU achieved by the Trust in the previous
years for which a performance fee was payable (“Highest DPU Threshold”). Whenever a performance fee is
earned, the Highest DPU Threshold will be adjusted to the highest DPU achieved. In order to be eligible for a
performance fee in future, the Manager would have to outperform the adjusted Highest DPU Threshold.
The pegging of the Performance Fee to DPU aligns the interests of Manager and Unitholders as the compensation
commensurate with the value the Manager delivers to Unitholders as a whole in the form of distributable income.
With DPU Growth Model, the Manager will be more committed to providing the Unitholders with stable
distributions on a more sustainable basis. The Manager is motivated to increase DPU through the efficient
portfolio management, astute cost management and effective capital management. This can achieved by pro-
active organic and external growth strategies such as asset enhancement initiatives, acquisitions, developments
and divestments to continually rebalance the portfolio and sustain income accretions. Taking on short-term risks
is deterred as the Manager strives to achieve sustainability.
