A couple of months ago, we announced plans for a series of fund mergers and renaming (where applicable). We have received FSA approval for these plans and, subject to unitholder approval, at three Extraordinary General Meetings (EGMs) on 8 July 2009, the plans will be carried out on 10 July 2009.
Overview
The Rathbone High Income Fund will merge into the Rathbone Blue Chip Income and Growth Fund and the Rathbone Special Situations Fund will merge into the Rathbone Smaller Companies Fund which in turn will revise its objective and be relaunched as the Rathbone Recovery Fund. We propose to offer unitholders in both the Rathbone Special Situations Fund and the Rathbone Smaller Companies Fund the option of receiving units in the Rathbone Blue Chip Income and Growth Fund and/or units in the Rathbone Recovery Fund, in proportions of their choice.
The process
On Monday 22 June, unitholders whose holdings are registered in their own name, will be sent a circular appropriate to their fund holdings (one circular per fund affected with ISA, unit trust and savings plan holdings consolidated) explaining the detail behind the mergers together with a Proxy Form and a Form of Election. Your clients must indicate ‘for’ or ‘against’ the merger on the former and use the latter to express their preference in terms of funds held going forward. With the exception of those who invest in these funds after 10 June 2009 (who are not eligible to vote), unitholders can attend the EGMs in person or send the forms back to us using the reply envelope provided, to arrive with us no later than 11.00am on 6 July 2009. Otherwise and subject to a successful vote, unitholders in the Rathbone Special Situations Fund and in the Rathbone Smaller Companies Fund will receive units in the Rathbone Recovery Fund.
After the voting
The exact value of your clients’ units immediately prior to the merger will be reinvested into new units and your clients will be notified of their unit position by 31 July 2009 at the latest. Subject to a successful vote, dealing in these funds will be suspended at 12.00pm on Thursday 9 July and throughout Friday 10 July 2009 to allow the mergers to proceed.