Significant fund changes

Transfer of Threadneedle US Equity Income Fund

The Threadneedle US Equity Income Fund was transferred into a new fund, the US Equity Income Fund, on 20 May 2016.

An Extraordinary General Meeting (EGM) was held on 23 March 2016 at which the requisite majority of 75% shareholders voted in favour of our proposal to transfer the Threadneedle US Equity Income Fund (the Existing Fund) into a new US Equity Income Fund (the New Fund).

Shares in the Existing Fund were automatically switched for shares in the New Fund on 20 May 2016 and subsequently the Existing Fund was closed.

Why did we transfer the fund?

Following a review of our funds, we decided to simplify and rationalise our product range. While this is mostly an administrative change, shareholders are expected to benefit from lower overall fees and expenses in the New Fund than those charged in the Existing Fund. We therefore consider the change to be in the best interests of shareholders.

For further details regarding the changes, please see Appendix 1 of the Shareholder Circular.

Do I need to take any action?

No. The transfer successfully took place on 20 May 2016, when investors would have automatically received shares in the New Fund.

If you do not wish to hold shares in the New Fund, you can switch your holding into an equivalent unit or share class in another Threadneedle fund or redeem your units in the Trusts as normal.

Please note that if you do switch your investment to another Threadneedle fund this will constitute a disposal of units for capital gains tax purposes and may give rise to a tax liability. This will depend on your individual circumstances – if you are unsure of how this may affect you please contact a financial adviser

Is my investment affected by the transfer?

The transfer did not affect the value of any investment or change the way in which it is managed, however, there were small administrative changes. The valuation point – the time at which the value of the assets of the fund is measured – changed from 2:00 pm to 12:00 noon. This means that we will need to receive dealing requests by 12:00 noon in order for shares to be bought or sold at that day’s share value. There was also a change to the dates on which income is paid by the New Fund, and to the way certain fees are paid. Please refer to Section 2 and Appendix 1 of the Shareholder Circular, which can be found in the related documents section, for full details of the differences between the Existing Fund and the New Fund.

Please note that Columbia Threadneedle Investments will bear all costs relating to the proposal.

Further information

If you are unclear about any of the details relating to the change, or have any further questions, please call us on 0800 953 0134*. Our team is available from 8:00 am to 6:00 pm, Monday to Friday.

*Calls may be recorded.

Related Documents

PDF

Client Letter 4 March 2016

PDF

Shareholder Circular