Gartmore is to merge its onshore Japan Smaller Companies Strategy fund into the more mainstream £103...
Gartmore is to merge its onshore Japan Smaller Companies Strategy fund into the more mainstream £103m Gartmore PSF Japan portfolio as part of its four-stage conversion to Oeics.
The Oeicing process, which began this week and will continue in three more stages until March 2003, will see very little in the way of fund rationalisation.
As the Japanese smaller companies portfolio is only £8.6m, the group is looking to use the second stage conversion, in November, to merge it away. Gartmore will be writing to unitholders later this autumn seeking permission for the merger.
The group is also considering opening some of its institutional portfolios to retail investors and may look to merge some of its institutional portfolios, such as an American vehicle and an overseas bond portfolio, into existing similar retail vehicles and offer separate share classes for the two different investors.
As the project converting the 46 portfolios is so complex, Jim Clark, head of product management at Gartmore, said varying or innovate charging structures will only be considered once the whole process is complete.
He said the group has not ruled out using an X-share class featuring nil initial charge and decreasing exit penalties similar to that set up by Hendersons.
At creation, the Oeics will utilise a dilution levy when necessary to protect remaining investors in the fund from the effects of redemptions.
However, later on it may adopt the FSA's newly allowed swinging single pricing method, eliminating the need for the levy, which Clark said can be confusing to investors.
Gartmore's unit trust pension, its fettered fund of funds and its cash portfolios are all to remain as unit trusts for the time being.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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