Liontrust is seeking shareholder approval to unitise Anthony Cross's Liontrust Knowledge Econom...
Liontrust is seeking shareholder approval to unitise Anthony Cross's Liontrust Knowledge Economy investment trust.
This would involve a voluntary liquidation of the smaller-companies trust with shareholders transferring their assets into the Liontrust Intellectual Capital unit trust also managed by Cross, using the same investment process.
Jonathan Harbottle, marketing director at Liontrust, said that when the trust launched two years ago, its prospectus stated that if its discount to NAV stood at 15% or more for a continuous three-month period one year after its launch, it would take action to close it by means of a rollover into a unit trust or Oeic vehicle.
Harbottle added for the best part of a year the discount of the trust has been around 20%. As a result the directors of the trust have spoken shareholders and offered them units in the Intellectual Capital fund in exchange for their current shares.
Liontrust is currently in the process of writing a circular to all the shareholders and an EGM will take place in around six weeks. More than 70% of shareholders spoken to have indicated they would back the scheme, according to Liontrust.
Harbottle said: 'Shareholders can expect an uplift in NAV when they switch over shares, as after putting this announcement out, we expect the discount to close to 7%-8%.'
Partner Insight Video: Advisers have had to adapt to the changing investment landscape.
Investment trust savings scheme