Proposed merger of L&G UK Alpha Trust into L&G Growth Trust

16 October 2020 – Legal & General Investment Management is proposing the merger of the Legal & General UK Alpha Trust into the Legal & General Growth Trust.

At an Extraordinary General Meeting to be held at 10am on 11 November 2020 via video conferencing, investors in the fund will be asked to vote on the proposal.

Background to the change

The company says the merger has been proposed because the UK Alpha Trust has been experiencing steady outflows in recent years, which has significantly reduced the size of the fund and Legal & General expect this trend to continue in the foreseeable future. Legal & General acknowledges this is due in part to its poor investment performance.

For these reasons, it has conducted a review of a number of options and has decided the best option for unitholders is to propose merging the UK Alpha Trust with the Growth Trust, another actively-managed UK equity fund, which has had a better investment performance record in recent years.

If the merger is approved by the required majority of unitholders, the merger will be implemented at 12:01pm on the 27 November 2020, at which time investors will receive new units in the Growth Trust in exchange for their units in the UK Alpha Trust. The UK Alpha Trust will be closed thereafter.