Share conversion facility
Conversion between share classes
From time to time, shareholders have the right to convert their shares between the two share classes. I.e. shareholders with income shares can convert them into growth shares, and shareholders with growth shares can convert them into income shares. this opportunity is subject to the conditions set out below.
The next date at which the share conversion facility is available is 26 October 2023.
Under current law, such conversions will not be treated as disposals for UK capital gains tax purposes.
This is not a recommendation to convert, or not to convert, any of your shares.
The conversion facility is not available to overseas shareholders except where appropriate confirmation has been provided to the Directors and the Directors are satisfied that it would be lawful for the conversion facility to apply under the relevant overseas laws and regulations.
Why you might consider converting between share classes
Income – The objective for this Portfolio is to provide investors with an attractive level of income, with the potential for income and capital growth. Income dividends are paid quarterly.
Growth – The objective for this portfolio is to provide investors with capital growth.
If you are unsure whether switching between share classes will meet your individual needs, please seek advice before proceeding further.
The Conversion Process
Minimum level
To take part in the conversion you will need to convert a minimum of 1,000 shares or your whole shareholding, whichever is the lower figure.
There is also a minimum level of total share conversions required for the conversion to go ahead.
If the total number of shares to be converted across all shareholders does not meet the value of £250,000, the conversion may be cancelled. The minimum value is required to justify the cost of the exercise.
This minimum level is subject to change from time to time.
Maximum level
There is also a maximum level of the growth and income shares across all shareholders that may be converted:
- 10% of the income shares in issue
- 10% of the growth shares in issue
If the maximum limit is exceeded the number of shares in all the requests for conversion will be reduced pro rata so the overall maximum level is not exceeded and the request for conversion will not be deemed to apply to the balance of the shares in the conversion instruction.
Conversion ratio
The two share classes do not have the same values and the conversion will not be on a one-to-one basis.
The shares will be converted into the other share class by reference to the ratio of the relative underlying new asset values (NAVs) of the two share classes. You can think of this as the relative value of the shares. The ratio is set out in more detail in the Company’s Articles of Association.
Only the Income shareholders are entitled to receive dividends.
The conversion ratio and the number of resulting shares will be announced on the conversion date (or deferred conversion date). The conversion date is subject to change but under normal circumstances not by more than one month.
The process
It is anticipated that, within nine working days of the Conversion Date or the Deferred Conversion Date, the Company will send:
- to each holder of converting Shares that are in certificated form a definitive certificate for the appropriate number of shares arising on conversion and a new certificate for any unconverted shares; and
- To each holder of converting shares held in a Columbia Threadneedle Investments savings plan, confirmation of the number of shares converted and the number of shares arising on conversion.
No share certificates will be issued in respect of any deferred shares arising as a result of the conversion. These deferred shares have no economic value and will be transferred to a nominee holder and bought back for nil consideration by the Company and cancelled in accordance with the Company’s Articles of Association.
Income shares arising on Conversion will carry the right to receive all dividends declared by reference to a record date falling after the Conversion Date or Deferred Conversion Date. Income shares which are converted into Growth shares will carry the right to receive all dividends declared by reference to a record date falling prior to the Conversion Date or Deferred Conversion Date but not on or thereafter.
Please note, if you elect to convert from Income shares to Growth shares no further income in respect of these Income shares will be paid to you.
Market price of Income shares & Growth shares
Income shares (p) | Growth shares (p) | |
|---|---|---|
1 February 2023 | 124.5 | 234.0 |
1 March 2023 | 124.5 | 239.0 |
3 April 2023 | 117.5 | 226.0 |
1 May 2023 | 119.5 | 226.0 |
1 June 2023 | 119.5 | 225.0 |
3 July 2023 | 112.0 | 221.0 |
28 July 2023 | 112.0 | 225.0 |
This is not a recommendation to convert, or not to convert, any of your shares.
Conversion Timetable
Future conversions
It is intended that following the next conversion on 26 October 2023 the conversion facility will be offered annually or close to annually thereafter.
This is not a recommendation to convert, or not to convert, any of your shares.
The conversion facility is not available to overseas shareholders except where appropriate confirmation has been provided to the Directors and the Directors are satisfied that it would be lawful for the conversion facility to apply under the relevant overseas laws and regulations.
How do I convert?
- Through an Investment Product managed or marketed by Columbia Threadneedle Management Limited please download a “PLAN CONVERSION INSTRUCTION” form here.
This “Plan Conversion Instruction” form must be received by 5pm on Friday 22 September 2023 in respect of the 26 October 2023 Conversion Date. When completed and signed it should be posted to Columbia Threadneedle Management Limited, PO Box 11114, Chelmsford, CM99 2DG. - In certificated form, please download a “CERTIFICATED CONVERSION NOTICE” form here.
This “Certificated Conversion Notice” form must be received by 5pm on Friday 29 September 2023 in respect of the 26 October 2023 Conversion Date. When completed and signed it should be posted to Equiniti Limited, Corporate Actions, Second Floor, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. - In uncertificated form (that is in CREST) then please follow the instructions below.
If you hold your Income Shares and/or Growth Shares in uncertificated form (that is in CREST) and you wish to participate in the Conversion on 26 October 2023 you must give a TTE Message instruction by 1.00pm on Friday 29 September 2023. If you hold both Income Shares and Growth Shares and wish to make a conversion for both you will need to make separate TTE Message instructions for each class of share.
The TTE Message instruction must be properly authenticated in accordance with CREST’s specifications and must contain, in addition to the other information that is required for settlement in CREST, the following details:
- the number of Income Shares and/or the number of Growth Shares to be converted;
- the participant ID of the holder of the Income Shares and/or Growth shares;
- the member account ID of the holder of the Income Shares and or Growth Shares from which conversion is to be made and the shares are to be debited;
- the participant ID of Equiniti Limited. This is 6RA49 for the Income Shares to be converted to Growth Shares and 6RA89 for the Growth Shares to be converted to Income Shares;
- the member account ID of Equiniti Limited. This is RA557601 for the Income Shares to be converted to Growth Shares and RA557602 for the Growth Shares to be converted to Income Shares;
- the corporate action ISIN number of your Income Shares and/or Growth Shares. This is GB00B2PP3J36 for the Income Shares to be converted to Growth Shares and GB00B2PP2527 for the Growth Shares to be converted to Income Shares;
- the intended settlement date of the TTE Message instruction. This must be by 1.00pm on 29 September 2023.
CREST members and (where applicable) the CREST sponsors should note that the last time at which a TTE Message instruction may be settled is 1.00pm on 29 September 2023.
- Through an investment platform, such as Hargreaves Lansdown or Interactive Investor, then the platform may contact you regarding the conversion process. In the event that you wish to make a conversion, but have not been contacted by your platform, you should contact them directly.