Former enterprise secretary and staunch Brexiter Jacob Rees-Mogg will obtain about £500,000 in annual dividends from his stake in Somerset Capital Management, the funding fund he co-founded in 2007.
However, the prospect of Rees-Mogg amassing a fair larger multimillion-pound windfall seems to be on ice, because the Guardian understands Somerset is not holding talks a couple of potential sale of the agency valued at between £70m and £100m.
More than a dozen members of Somerset will accumulate a part of the £6.49m revenue out there to them for the yr to 31 March 2022, though this was one-third decrease than the almost £9.7m recorded a yr earlier, after a fall in revenue. Rees-Mogg obtained dividends of no less than £600,000 in 2021, in response to the Times.
Rees-Mogg, who served as Brexit alternatives minister from February till September final yr, when he was appointed enterprise secretary by Liz Truss, helped set up Somerset in 2007.
Before he stopped taking a wage from the agency, Rees-Mogg beforehand obtained about £15,000 a month, plus his wage as an MP. He stopped receiving wages from the agency in 2019. He stays an equity-holding member.
His shareholding is known to be within the low teenagers, though this data is just not publicly out there.
Rees-Mogg’s present position at Somerset has been described as a sleeper shareholder, somebody not concerned in advising the agency on its funding technique or in working the enterprise.
Rees-Mogg’s payout for the yr to the top of March 2022 could have been decrease than that for the earlier 12 months on account of the slide in earnings on the agency, linked partially to a sell-off in rising markets.
It is known that the members’ share of final yr’s £6.49m revenue will probably be distributed as soon as salaries of working members and different bills have been paid.
Rees-Mogg, a vocal supporter of Brexit, has obtained no less than £7m in dividends from Somerset because the EU referendum in 2016, in response to media stories.
The firm, which has £4bn in property beneath administration, has historically invested in listed firms in rising markets, together with China, South Korea, India and Mexico, and is believed to have benefited from the pound’s fall in worth after the Brexit vote, as a result of its holdings had been abroad.
Reports of a sale of Somerset emerged in October final yr, when Dominic Johnson, a financier who co-founded Somerset with Rees-Mogg, was appointed as a minister within the Cabinet Office and the Department for International Trade.
The transfer by Liz Truss’s authorities triggered criticism, at a time when she and her chancellor, Kwasi Kwarteng, confronted questions over their hyperlinks to the City after their il-fated mini price range handed substantial tax cuts to rich folks and financiers.
Johnson is now the minister for funding within the Department for International Trade in Rishi Sunak’s authorities. It is known that Johnson has left Somerset and the agency is not holding talks with any events over a sale.
Oliver Crawley, a associate at Somerset Capital Management stated: “2021-22 was a difficult yr for all rising market buyers, however we consider that valuations in lots of areas at the moment are engaging. Our partnership construction permits us to take a prudent and long-term strategy to how we handle the enterprise, making certain we deal with the very best outcomes for our shoppers.”
He added that the corporate had recorded internet inflows in current months and remained “effectively positioned to reap the benefits of any enhancements in our markets”.
The firm describes itself as: “An employee-owned, $8.5bn, international rising markets fund administration agency. We are based mostly in London and Singapore and deal with managing concentrated, bottom-up, long-term, rising market fairness portfolios for our governmental, household workplace, wealth administration and institutional shoppers. We have quite a lot of experience in dividend progress investing, small, mid-cap and frontier markets.”