Henderson Diversified Income agrees merger with Henderson High Income
The enlarged HHI, which currently holds £262m in assets, will continue to be managed by Janus Henderson under the same investment objective and policy.
In a stock exchange notice today (4 October), the respective boards said that if the merger is approved by shareholders, it will take place by way of reconstruction and lead to the winding up of HDIV.
Under the scheme, HDIV shareholders will be able to either rollover their investment into HHI or obtain a full and unrestricted cash exit, or a combination of both. The cash option will be offered at a discount of 1% to the HDIV net asset value per share.
The enlarged HHI, which currently holds £262m in assets, will continue to be managed by Janus Henderson under the same investment objective and policy.
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David Smith will continue as the lead portfolio manager, supported by the firm's global equity income and the fixed income teams for the bond allocation.
According to the HDIV board, the diversified income strategy envisaged for the trust at launch «had not anticipated the economic conditions which have subsequently prevailed».
It said it has been difficult for the fund managers to take advantage of their ability to invest in loans, leading to the board being concerned about the effectiveness of the strategy in maintaining income levels and the capital value of HDIV in real terms in the future.
The diminishing size of the trust, with consequential impact on costs, returns and liquidity, was also a concern for the board, it said. HDIV currently holds £145m in assets.
The HDIV board said it had invited proposals from a number of investment companies with alternative investment processes that could
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