Investment management update

RNS Number : 9625S

Schroder UK Growth Fund PLC

29 June 2018

 

Schroder UK Growth Fund plc

Investment management update

29 june 2018

The Board of Schroder UK Growth Fund plc ("SDU" or the "Company") is pleased to provide an update on the transition of investment management arrangements to Baillie Gifford & Co Limited ("Baillie Gifford").

At a Board meeting on 26 June 2018, the Board approved the investment management agreement to be entered into between Baillie Gifford and the Company, as well as the depositary agreement to be entered into between the Company, Baillie Gifford and The Bank of New York Mellon (International) Limited ("BNYM").

On 27 June 2018, Baillie Gifford received confirmation from the UK Financial Conduct Authority ("FCA") that it can proceed with the assumption of the investment management function of the Company.

Accordingly, the Board, Baillie Gifford, BNYM, Schroder Unit Trusts Limited ("Schroders") and HSBC Bank plc ("HSBC") have agreed to implement the following timetable to effect the transition:

·      the appointments of Schroders as investment manager and HSBC as depositary will terminate at 11:59 pm on Friday, 29 June 2018;

·      the appointments of Baillie Gifford as investment manager and BNYM as depositary will take effect  immediately after 11.59 p.m. on Friday, 29 June 2018;

·      the Company will apply to change its name to "Baillie Gifford UK Growth Fund plc" and its registered office address to Grimaldi House, 28 St James's Square, St James's, London SW1Y 4JH with the aim of effecting the change of name and registered office address as soon as practicable, subject to obtaining the necessary regulatory approvals; and

·      the ticker of the Company will change from "SDU" to "BGUK" and it is expected that this will happen on the day following the change of name becoming effective.

The Board also notes that it has been advised by the administrator of the Schroders ISA Saving Scheme (the "Scheme Administrator") that underlying investors in the scheme will be able to continue to hold the Company's shares for a period of time after the transition of investment management arrangements. The Scheme Administrator has been working with third party savings scheme administrators and is exploring options whereby scheme participants will be able to transfer their existing holdings and continue to hold the Company's shares outside of the Schroder ISA Saving Scheme. The Scheme Administrator intends shortly to write to underlying investors to explain the options in relation to their holdings and it is expected that holders will have not less than three months within which to decide what they want to do.

The Board expects to provide further updates in due course in relation to the timing for the change of name, registered office address and ticker as well as in relation to the Schroders ISA Saving Scheme.

Contacts

Joe Winkley/Neil Morgan

020 3100 0000

Winterflood Securities Limited - Corporate broker and financial adviser

 

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