Corporate Actions

Occasionally, corporate actions or changes to trading terms may affect the investments you hold through Novia. This involves changes to your investments which can be significant and may include, amongst others:

  • A change of name, investment objective or policy.
  • A change to the level or nature of charges that apply to your investment.
  • Your investments closes, is suspended, merges into another or becomes unavailable through the Service.
  • A change to the type, structure or regulation of your investment.
  • Application of additional charges such as a special dilution levy

For more information on how Novia deal with corporate actions please see the Key Features Document available here

Novia aim to keep you informed of corporate actions that may affect your investments; but you should always speak to your Adviser for more information on any changes and how they may affect you and your investment.

You may be unable to buy or sell investments via the service during the time in which we process corporate actions. This will include, amongst others, name changes, mergers or closures. It will typically not be possible to carry out transactions on investments about to undergo corporate actions for up to 20 business days prior to the effective date of the action.

Below you can find details of the investment affected, the corporate action that is going to happen and the date on which the change will become effective. You should check this page regularly to keep up to date with corporate actions and any impact they may have on your portfolio.

Some common types of corporate actions include:

Fund Closures:

A Fund Closure may occur if the fund can no longer be managed at its current size. The Fund Manager must apply to the FCA for approval before a Fund Closure can be performed.

In the event of a fund closure, an investor will not be able to make any further investments into the fund. The fund will continue to be managed and investors will be able to redeem units or wait until such a time that the fund re-opens. 

Soft Closures:

A soft closure usually takes place when a fund has become too large and the Fund Manager therefore feels that the fund can no longer be managed efficiently. In this scenario one of the following two actions will usually occur; firstly, the Fund Manager may decide to no longer permit new investments into the fund, which will allow them to better manage the fund's current size, or secondly, the Fund Manager may impose an initial charge to the fund in order to restrict new investment.

Mergers:

A fund merger takes place when an Investment House decides to merge at least two funds together. This may be due to the fact that the funds are not large enough on their own, or that the funds have similar objectives and therefore it may be beneficial to investors if the funds are combined, which would result in the objectives of the fund being harmonised, and costs minimised. 

Dilution Levy:

A dilution levy is an adjustment made to the price of units or shares in a pooled investment vehicle, to reflect the costs of large inflows or outflows of capital to protect ongoing investors. This is usually expressed as a percentage of the fund value.

An asset manager may impose a dilution levy/ adjustment in order to protect the existing shareholders from the additional transaction costs incurred of buying and selling the underlying securities as a result of large inflows or outflows from the fund.

Fund Suspension:

This is where the Fund Manager decides to close the fund to new purchases and redemptions. Funds can suspend dealing only in specific circumstances. Sales and redemption requests maybe cancelled or held and executed after the end of the suspension dependent on the circumstances. For more details regarding the processes for funds whilst they are suspended please click here. For information regarding processes once suspensions are lifted click here.   

Before making the decision to suspend a fund, the manager and trustee or depository must have considered all alternative options. The FCA Handbook specifies the rules for Suspensions and how they must be managed. 

If you have any further questions or queries please speak to your Adviser.

Please note that with effect from January 2014 Corporate Actions were reported in date effective order with the current month's actions displayed below.

Corporate Actions which are due to take place in future months are displayed under the 2017 tab.