Fund merger - Threadneedle UK Select Fund

Applicable to our Defined Fund Range for Preference Polices

Reason for the merger

The Board of Directors of Threadneedle Investments Funds ICVC agreed the merger, in order to bring

together two quite similar funds. Threadneedle UK Select Fund, the smaller of the two funds, has not

attracted significant new investment in recent years, and has reduced in size to approx. £255m as at 30

July 2021. By merging it into the larger Receiving Fund (approx. £1,845m as at 30 July 2021), Shareholders

may benefit from economies of scale associated with the management of a larger pool of assets.
 

The investment objective and the risk profile of the Funds are very similar; each one invests in UK Equities,

aims to achieve capital growth over the long term, and looks to outperform the FTSE All-Share Index over

rolling 3-year periods after deduction of fund charges. The Receiving Fund invests in a larger portfolio of

companies than the more concentrated Merging Fund. The Merging Fund typically holds fewer than 50

companies and the Receiving Fund typically holds fewer than 80 companies.
 

The risks factors are the same for both Funds except for the ‘Concentrated Portfolio Risk’ which applies to

the Merged Fund only. There are no new risks identified as a result of the Merger.

A comparison summary of the Investment Policy and Investment Objective can be seen in Appendix 1 opposite, together with a copy of the Notification.

What happens next?

The Merged Fund is now closed to new business and switches in. Clients with existing holdings in the Merged Fund have been automatically switched into the Receiving Fund, with effect of 19 November 2021.

We have written to all affected plan owners, or their appointed Investment Adviser, to advise them of the action we have taken and their option for switching to a new fund if they prefer. Servicing Financial Advisers will receive a sample copy of the letter for their information.

The table below outlines the Merged Fund and the Receiving fund clients have been automatically switched into:
 

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For more information about Columbia Threadneedle funds visit www.columbiathreadneedle.com