Freddie Neave would remain as manager and be rehoused at the new investment manager for the funds
Both funds were suspended on 23 June, as shareholders were told the Odey AM board was looking at how they could be best served going forward, including via a potential restructure of the two funds' operations.
In the two letters, Odey AM said it is proposing the creation of two new Cayman Islands-domiciled funds where the current funds would be switched to.
The new funds would still be managed by current fund manager Freddie Neave with a similar investment objective and strategy.
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As part of the pans, if accepted by shareholders, the asset manager would appoint an «established third-party FCA-regulated investment manager» and Neave would leave Odey AM and be rehoused at that company.
In the letters, Odey AM stated: «In broad terms, a scheme of reconstruction would involve existing shares in the fund(s) being compulsorily redeemed and shares in the new fund(s) being issued to investors. Assets would be transferred from the fund(s) to the new fund(s).
»The funds' articles of association would need to be amended in order to facilitate a scheme of reconstruction and meetings would be convened and proxy forms circulated in advance. Investors should seek their own tax advice as to the tax consequences of participating in a scheme of reconstruction."
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The asset manager added it expects founder Crispin Odey to not switch to the new funds and remain in the existing ones. This would lead to the appointment of a new investment manager as Odey AM intends to cease to act as one for the
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