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Gervais Williams to resume control of Henderson Fledgling Trust
by Dylan Lobo on Feb 15, 2013 at 07:49
This will allow the trust to move up the market spectrum and invest in mid-size companies with the prospect of paying ‘good and growing dividends’. It will also be permitted to invest in FTSE 100 companies where the pair see fit.
This style has proved successful, with the Diverse Income Trust’s net asset value rising 29.4% in the 12 months to 13 February, helping lift it to an average premium of 3.1% during the period.
As part of arrangement Miton will receive a 1% management fee, which it will until completion of the merger. It will also contribute £50,000 towards merger costs.
While Henderson was disappointed to lose the trust, it was not surprised by the decision.
'Henderson is disappointed but not surprised that the board and major shareholders of Henderson Fledgling Trust did not want to continue with an investment that focused solely on the Fledgling asset class,' Henderson said in a statement.
'The trust's small size and a persistent shrinkage in number of constituents of the fledgling index have raised legitimate questions about the long term viability of the trust in its current form which are being addressed here.
'However, it is disappointing to see a successful investment trust which has delivered shareholders substantial returns over time coming to the end of its natural life. Henderson will be assisting in the interests of shareholders to ensure a rapid and efficient transition.'
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