Trust news: Polar Capital Tech, Greencoat UK Wind

The investment trust world has been set alight by the attempts of American investors to take control of seven of them. The final say on the investors’ proposals rests with the trusts’ shareholders, who are being asked to vote at special meetings over the next few weeks. Private savers collectively hold very large stakes in these trusts so their votes are likely to determine the outcome. Fidelity customers who have not already set up the capability to vote on their accounts may want to do so now – we explained how to enable voting in our report of the campaign for change at the seven trusts. 

Here are other significant investment trust developments over the past few weeks. Last month’s update can be read here. 

Polar Capital Technology and Greencoat UK Wind to get cheaper 

Polar Capital Technology and Greencoat UK Wind, which both regularly feature on lists of the trusts most bought by Fidelity customers, are to cost investors less. 

Polar Capital Technology is to scrap its performance fee and cut its regular management fee. Currently it pays the fund manager, Polar Capital, an annual 0.8% of net assets up to £2bn, 0.7% from £2bn to £3.5bn and 0.6% thereafter, but from 1 May the fee will fall to 0.75% up to £2bn and 0.6% thereafter. The performance fee will be scrapped on the same day. 

Greencoat UK Wind’s management fee is now calculated as a percentage of the lower of market value and net asset value (NAV); previously it had been based on NAV. The trust has traded at a discount to NAV for some time, so the change will result in a lower management fee. Should the shares trade at a premium in future investors will not find themselves paying more as a result, as the fee will then be based on NAV. The change took effect on 1 Jan. 

Montanaro UK Smaller Companies has also become cheaper. With effect from 31 Dec the investment management fee of 0.5% a year is calculated on the basis of net assets rather than gross assets. At the end of September the trust had gross assets of £224m and net assets of £204m. It will also increase its quarterly dividend from 1% of net assets to 1.5%. 

Invesco Perpetual UK Smaller Companies moves to Artemis 

Management of Invesco Perpetual UK Smaller Companies is to switch to Artemis. The trust will be renamed in due course and Artemis will charge the trust an annual 0.65% of net assets up to £50m and 0.55% thereafter, compared with Invesco’s fee of 0.75% of gross assets. The change of manager is expected to take place by the end of March. 

More trusts to disappear 

The board of Jupiter Green has decided to propose liquidation of the trust. Shareholders will have the option of rolling over their investment into the Jupiter Ecology Fund or choosing a cash exit at a ‘modest’ discount to NAV. A circular will be sent to shareholders in due course and the proposals are expected to take effect during the first quarter of 2025. 

The board of Menhaden Resource Efficiency has also decided to propose an orderly realisation of the trust and a return of the realised capital to shareholders. It intends to publish a circular in early 2025 to put the necessary resolutions to shareholders. 

Alpha Real Trust is to quit the stock market and has offered shareholders cash in exchange for their holdings at net asset value. The last day of dealing in the shares is expected to be 22 January. 

Taylor Maritime Investments is to cease to be an investment trust and become a normal commercial company. Its shares will continue to trade on the stock market. The change is expected to take effect on 10 February, when its name will change to Taylor Maritime Limited. 

Ground Rents Income rejects bid 

Ground Rents Income Fund has received a ‘possible’ cash offer of 34p a share from Victoria Property Holdings. The board said the offer ‘wholly undervalues’ the trust and urged shareholders to take no action. 

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Investment trust shares are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of  Fidelity’s advisers or an authorised financial adviser of your choice.