Liontrust is looking to close its Liontrust Winners investment trust and replace it with an offshor...
Liontrust is looking to close its Liontrust Winners investment trust and replace it with an offshore open-ended successor vehicle.
The trust's board has proposed a members voluntary liquidation due to concerns about the illiquidity of Winners' shares and poor market sentiment contributing to its prolonged 20% plus discount to NAV.
The UK Alpha fund, which will be Liontrust's sixth offshore vehicle, launches within the next two months. This is around the same time as the trust's EGM, which is being called in light of the board's recommendation.
The new fund will be managed by Will Pattison and will retain the same mandate, investing with conviction in 15-30 of the largest 150 UK companies.
The move follows the unitisation of the Liontrust Knowledge Economy trust April on similar grounds and reduces the group's investment trust stable to just one vehicle, Liontrust First UK, which faces a continuation vote next year.
Jonathan Harbottle, marketing director at Liontrust, said the group favoured a Guernsey domicile over an onshore launch for UK Alpha so Pattison so that it will have more flexibility on how much it can hold in one stock.
Harbottle said it was more cost effective to shareholders to be given the cash value of their shareholdings rather than set up a rollover vehicle.
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