Chrysalis Investments Limited has announced a capital allocation policy and proposed changes to its performance fee. The company intends to consult with shareholders on these matters. The capital allocation policy includes maintaining a cash reserve of £50 million, prioritizing distributions to shareholders, and balancing capital allocation between further distributions and portfolio investments. The proposed changes to the performance fee aim to ensure long-term alignment between the portfolio manager's team and shareholders' interests. The changes include reducing the overall performance fee level from 20% to 12.5%, introducing a cap on performance fees, and implementing a primarily share-based performance fee. 75% of any performance fee will be deferred and subject to conditions based on the long-term performance of the company. The proposed changes to the performance fee will require shareholder approval.