Standard Life Investments wins investment trust mandate

Standard Life Investments, a leading investment house, has announced that it has successfully completed the merger between Standard Life UK Smaller Companies Trust plc (SLS) and Gartmore Smaller Companies Trust (GSM).

99.8% of SLS shareholders that voted were in favour of the merger.

Shareholders holding approximately 68% of Gartmore Smaller shares elected to transfer their investment into Continuation Shares of Standard Life UK Smaller Companies Trust. Only 8% chose a cash exit, with the remaining 24% electing for the in specie option.

From 8am on 4 February the enlarged SLS will have gross assets of approximately £63m, almost doubling the gross assets before the transaction.

SLS has been managed by Harry Nimmo since Standard Life Investments was appointed as its manager in September 2003. Since then, SLS has been one of the top ranking UK smaller company investment trusts and has significantly outperformed its smaller company benchmark, the Extended Hoare Govett Smaller Companies Index (ex Investment Companies) by 28%, 43% and 56% over one, three and five years to 31.01.09 respectively.

Gordon Humphries, Head of Investment Trusts at Standard Life Investments, said: "We believe that this merger provides a win-win situation for both sets of shareholders and we're delighted to have been selected to manage the assets of the continuing Gartmore Smaller shareholders. Gartmore Smaller shareholders who have chosen to roll over their investments will now have access to the capabilities of Harry Nimmo, a multiple award-winning fund manager. "In addition, investors in the Standard Life UK Smaller Companies Trust will now benefit from the advantages of an enlarged trust with a greater asset base and reduced basic management fee arrangements in the longer term."

Harry Nimmo, Manager of the newly-enlarged Standard Life UK Smaller Companies Trust, said: "The Standard Life Investments Smaller Companies team would like to welcome our new shareholders to the trust. Our aim is to harness our investment process to maintain awardwinning performance for the benefit of all shareholders."