Schroder fund merger

23rd December 2015 - Schroder are seeking shareholder approval to merge the £29m Schroder Japan Alpha Plus fund with the £2.1bn Elite Rated Schroder Tokyo fund.

They have written to investors in Schroder Japan Alpha Plus, asking them to vote in favour of the merger, which they believe to be in the best interests of investors in this fund. All postal votes are to be received by 20th January 2016 and an extraordinary resolution meeting will take place on 22nd January 2016. If approved, the merger will come into effect on 29th January 2016.

Commenting on the synergies of the funds and benefits of the merger, Robin Stoakley, a director of Schroder Unit Trusts Limited, said in a circular to investors: “Not only will the merger result in a lower ongoing charge for unitholders of the Schroder Japan Alpha Plus fund, but it will also see them benefit from the economies of scale created through the management of a larger pool of assets. Both funds have similar investment objectives and employ the same investment and borrowing powers. The funds have a comparable investment approach and follow bottom-up fundamental research-driven investment principles.”