Chrysalis Investments, a London-listed investment company managed by Jupiter, unveiled its plans to propose a capital allocation policy to its shareholders. As part of this policy, the company will initiate a share buyback program, targeting £100 million ($121.7 million) worth of shares. Additionally, Chrysalis aims to revise its performance-fee arrangement.
Under the proposed policy, and subject to meeting a cash reserve requirement of £50 million, Chrysalis intends to repurchase up to 15% of its share capital. If necessary, the company will continue buying back shares until a total value of £100 million has been distributed. Following this, Chrysalis will strive to strike a balance between further shareholder returns and portfolio investments. It plans to allocate up to 25% of net cash profits on realizations.
Another significant aspect of Chrysalis' proposal involves reducing the overall performance-fee level potentially payable to its portfolio manager during a financial year. The current level of 20% will be revisited and lowered to 12.5% in order to enhance efficiency.
In the near future, Chrysalis will engage in consultations with its shareholders regarding these proposed policies and revisions. The input gathered during these discussions will shape the company's direction moving forward. The final proposal will be presented at Chrysalis' annual general meeting, scheduled to take place no later than April 30.
Andrew Haining, Chairman of Chrysalis Investments, commented, "The board eagerly anticipates engaging with shareholders over the next few months to gather insights on the proposed capital allocation framework and the future trajectory of the company."