Fleming's Claverhouse Trust has been so popular that the shares are trading at a premium. New cash will be invested in conversion shares that will be used to invest in a portfolio mirroring the existing Claverhouse fund.
These shares will be converted into ordinary Claverhouse shares when the money has been invested.
Simon Crinage, marketing manager of Fleming, said: 'There will be no overhang of shares in the market as with a rights issue. This should ensure that there is no drop in the price of the Claverhouse shares,' The Claverhouse offer closes on 3 June and Fleming plans to convert the shares on 21 June.
Hoare Govett is launching the Second Hoare Govett Smaller Companies Index Investment Trust to mirror a trust launched at the end of last year. It expects to close the issue early in June.Reuse content