Northern 3 VCT adjusts fee terms with Mercia Fund Management

Northern 3 Venture Capital Trust (VCT) has announced a revised fee structure in collaboration with its manager, Mercia Fund Management. The changes follow a strategic review of the trust’s operational and financial framework, aimed at aligning costs with current market conditions and investment objectives.

The updated fee terms, effective immediately, include adjustments to the management fee and performance-related charges. Mercia Fund Management, which oversees the trust’s portfolio, stated that the revisions are designed to enhance long-term value for shareholders while maintaining operational efficiency.

Northern 3 VCT, a closed-end fund listed on the London Stock Exchange, focuses on investing in small and medium-sized UK businesses. The trust has historically targeted early-stage and growth-oriented ventures, supported by tax incentives for VCT investors.

The fee adjustment comes as the trust continues to navigate a challenging investment environment marked by economic uncertainty and volatile equity markets. Mercia Fund Management did not disclose specific financial details of the revised structure but emphasized that the changes reflect a commitment to sustainable growth and shareholder returns.

Analysts noted that fee revisions are not uncommon among VCTs, particularly as they seek to balance cost management with competitive investment strategies. The move follows similar adjustments by peers in the sector, reflecting broader trends in the UK’s venture capital trust market.