What does this mean for shareholders?
Apart from increasing the costs of running the investment trust, which has a direct impact on the Corporation’s On-going charges and therefore shareholder return, the practical impact of AIFMD for shareholders is minimal.
The investment portfolio continues to be managed on a discretionary basis by Janus Henderson.
The administration of the trust (company secretary, accountancy, valuation, compliance, etc.) continues to be provided by Law Debenture group employees.
The registrar continues to be Computershare.
The auditor is Deloitte LLP.
An integral requirement of AIFMD compliance is that the Corporation has to have in place a depositary (and has appointed NatWest Trustee and Depositary Services Ltd for this purpose). This appointment is intended to increase investor (shareholder) protection by having in place an external, FCA regulated entity that—broadly—monitors and oversees the Corporation’s compliance with its AIFMD obligations primarily to ensure that the fund’s assets are properly safeguarded, cash flows monitored, appropriate valuations applied, portfolio management instructions carried out and that income is properly applied.
The depositary is the Corporation’s custodian. However, NatWest has appointed HSBC Bank plc (our previous custodian) under a sub-custody agreement, so that for custody purposes, the Corporation’s arrangements are effectively unchanged.
The Corporation’s regulatory status
Historically, the Corporation has not been authorised to engage in any activity that would constitute financial promotion or advice to deal in the Corporation’s shares. As a listed company, the Corporation’s shares are freely tradeable, but any shareholder or prospective shareholder who chooses to buy, hold or sell the Corporation’s shares does so either on the basis of his/her own decision (execution only) or following advice from a qualified advisor such as an independent financial advisor. Nothing contained on the Corporation’s website (or in any other literature published by the Corporation) has constituted a recommendation to deal in the Corporation’s shares, or an offer or inducement to do so.
IN BECOMING AN AIFM, AND THEREFORE SUBJECT TO FCA AUTHORISATION, NOTHING IN THE ABOVE STATEMENT HAS CHANGED OR WILL CHANGE.
Shareholders, prospective shareholders and any other interested parties must be aware that the Corporation’s status as an AIFM DOES NOT:
- Entitle the Corporation to engage in the active marketing of its shares;
- Give the Corporation any authority to offer advice to shareholders (or prospective shareholders) about whether they should buy, hold or sell the Corporation’s shares;
- Create any entitlement for shareholders (or others) to a claim against the Corporation via the Financial Ombudsman Service or (in the event of the insolvent demise of the Corporation) make any claim for compensation under the Financial Services Compensation Scheme.
Entitlement to information
Notwithstanding the preceding statements, AIFMD compliance requires that the Corporation should make certain information available to shareholders and prospective shareholders. Much of that information has, historically, always been available to shareholders (and others) via the Corporation’s website.
The link below is to an FCA form called FUND 3.2.2R Disclosures. The form sets out the material that the Corporation is obliged to make available to shareholders and potential shareholders. The form points out where on the Corporation’s website particular material is available and, if relevant, the particular page number of certain documents (usually, the annual report and accounts) where the prescribed information can be accessed.
This page of the website will be kept updated as required. Any shareholder or potential shareholder who wishes to discuss any aspect of the AIFMD should contact:
020 7606 5451