Eurotrust Investor Information
Eurotrust/The European Investment Trust plc ("the Company")
Information for investors
Savings Scheme Questions and Answers updated as at 17 May 2010
Here is a summary of the transfer process from F&C to Edinburgh Partners:
· If you elected to transfer your Eurotrust holding into the BNP Paribas - Edinburgh Partners Savings Scheme &/or ISA, and you returned your completed transfer application forms by the April 30th deadline as requested, you should have now received a letter from BNP Paribas confirming that your transfer of shares has been completed. You should have been provided with a statement showing your share and cash holding and a new account number.
· If you elected to transfer the shares into your own name, you should receive a share certificate by the end of May.
· If you did not return an original instruction by March 12th, and your holdings are in a Private Investor Plan or Children's Investor plan, your shares will be transferred into a certificate in your own name and the certificate sent to you.
· If you did not return an instruction by March 12th, and your holdings are in an ISA, your shares will have been sold and the cash proceeds retained within your ISA.
Please note that if you originally held Eurotrust shares on the main register in a certificated form, you will not receive a new certificate as a result of the change of company name (to The European Investment Trust plc), and your existing certificate is still valid. However, if a new certificate is issued to you, for example as a result of a change of address or as a replacement for a lost certificate, the new certificate will show the new company name.
Background
Until 1 February 2010, Foreign & Colonial Eurotrust PLC was managed by F&C Management Limited ("F&C"). On 10 December 2009, the Board of the Company announced that, following a review of the Company's short and long-term investment record and the performance of F&C, the Board has appointed Edinburgh Partners Limited as the investment manager of the Company's assets, with effect from 1 February 2010. There will be no change to the Company's investment objective. On 1 February 2010 the name of the Company changed to The European Investment Trust plc.
Edinburgh Partners Limited is an independent fund manager with approximately £6.7bn currently under management, of which around £213m is in the Edinburgh Partners European Opportunities Fund, a fund with a similar investment mandate to that of the Company and an excellent record of performance since its launch in 2004. Edinburgh Partners is the manager of two other investment trusts, EP Global Opportunities Trust plc and Anglo & Overseas plc. Edinburgh Partners' investment team is led by Dr Sandy Nairn, and Dale Robertson is the Company's portfolio manager.
Savings Scheme
F&C operate a savings scheme, offering Private Investor Plan, ISA, Children's Investment Plan and Child Trust Fund products, through which investors can hold shares in Eurotrust (and other investment trusts managed by F&C). From 1 February 2010, Eurotrust is no longer a permitted investment within the F&C savings scheme.
F&C wrote to investors on 18 December 2009 to advise them of the change of investment manager, and explained that they would send a further letter in the New Year with full details of all the options available.
At the end of January, F&C wrote to investors again, setting out the range of options available to them. For Private Investor Plan and ISA investors these are:
For investors who wish to retain their holding in Eurotrust:
· Transfer their Eurotrust shares to a Share Plan / ISA in a savings scheme offered by Edinburgh Partners, on substantially the same terms and condition as the F&C scheme
· Transfer their Eurotrust shares onto the main register
For investors who do not wish to retain their holding in Eurotrust:
· Switch to the F&C European Growth & Income Fund Investment Funds ICVC, which is an Open Ended Investment Company (OEIC) Fund
· Switch to an alternative investment trust within the F&C range
· Sell their Eurotrust shares
Investors in the Child Trust Fund (CTF) do not have the option of retaining their Eurotrust shares - they are required to sell their Eurotrust holding.
Questions and Answers
1. I hold Eurotrust shares in the F&C savings scheme. Do I need to do anything now?
If you hold shares in a Private Investor Plan, Children's Investment Plan or an ISA, you will be able to transfer those shares to an Edinburgh Partners Share Plan or ISA, offered on substantially the same terms and conditions as the F&C plan you currently have. F&C wrote to investors at the end of January setting out your options, and enclosing an instruction form which you can use to tell F&C what you want to do. If you have not received this letter, or you have questions about how to complete the instruction form, you should contact F&C on F&C contact details.
If you hold Eurotrust shares in a Child Trust Fund (CTF), you will not be able to transfer the shares. See Question 5 below.
If you hold Eurotrust shares in the F&C Pension Savings Plan, you will be able to continue to hold the shares in that plan. Edinburgh Partners does not currently offer a pension product.
2. The F&C letter says that the Edinburgh Partners scheme will be offered on 'substantially' the same terms & conditions. What does this mean?
In order to minimise the inconvenience for clients who choose to transfer their Eurotrust shares to an Edinburgh Partners plan, we have set up the terms & conditions of our plans to be as close as possible to the F&C plans. In particular:
· All charges are the same;
· The administrator (and plan manager) of the plans is BNP Paribas, who also carry out administration of the F&C scheme.
The main difference is that the investment choice in our scheme is the range of investment trusts managed by Edinburgh Partners. This consists of The European Investment Trust plc and two global investment trusts: EP Global Opportunities Trust plc and Anglo & Overseas Plc. There will also be a difference in the dates at which you receive valuations - these will be as at 5 April and 5 October each year, to coincide with the tax year.
3. When will my plan transfer take place?
The process will be as follows:
1. You return your instruction form to F&C indicating an intention to transfer your plan. You have until 12 March 2010 to return the form to F&C.
2. F&C will pass this instruction to BNP Paribas as the administrators of the Edinburgh Partners scheme.
3. Our scheme documentation has been prepared and was sent out at the end of March to those investors registering their intention to transfer to the new scheme.
4. You will then complete and sign the application documents and send these back to BNP Paribas. You should return these documents to BNP Paribas by 30 April.
5. BNP Paribas will collect applications from investors and then transfer plans in a bulk transfer which took place on 7th May.
4. Will there be any charge for transferring my Eurotrust holding to a new scheme?
There will be no charge to you for transferring your Eurotrust holding to the Edinburgh Partners scheme.
Please note that in section 7 of the BNP Paribas - Edinburgh Partners Investment Trust Stocks & Shares ISA Transfer Application Form, the second sentence relating to the sale of holdings does not apply as this transfer will take place as a stock transfer.
5. Can I transfer Eurotrust shares held in the F&C Child Trust Fund?
Edinburgh Partners is not a Child Trust Fund provider. Also, the CTF regulations do not allow you to have more than one CTF or to do a partial transfer of some of the assets within a CTF to another provider. So it would not be possible to transfer your Eurotrust shares to another CTF provider and leave other assets in your CTF with F&C. So your options are:
- to find another CTF provider who will accept Eurotrust holdings and any other investments you have in your CTF, and transfer the whole CTF to them; or
- to sell the Eurotrust shares you hold in the CTF and reinvest in one of the other investment choices offered by F&C; or
- to sell all of your holdings in the F&C CTF and transfer the cash to another CTF provider.
A list of CTF providers is available on the HMRC web site www.childtrustfund.gov.uk
6. I hold Eurotrust shares in the F&C Pension Savings Plan. What options will I have?
We understand that F&C will continue to allow Eurotrust shares to be held within the pension plan, so you do not need to take any action.
7. What will happen to my monthly direct debit payments?
F&C won't allow any direct debit payments collected after 1 February to be used to buy more Eurotrust shares. However your direct debit will continue to be collected and the portion allocated to buy Eurotrust shares will be held as cash. If you choose to transfer your Eurotrust holding to an Edinburgh Partners plan, this uninvested cash will be transferred along with the shares.
8. I hold Eurotrust in my F&C ISA. Can I transfer to the Edinburgh Partners ISA? See 4 answers below:
8a. I hold Eurotrust in my F&C ISA. Can I transfer to the Edinburgh Partners ISA? (For investors who only hold Eurotrust shares in the F&C ISA and subscribe by monthly direct debit.)
Yes, you can transfer your whole ISA to an Edinburgh Partners ISA and continue to subscribe. You will need to read the Key Features and Terms & Conditions which has been sent out to you at the end of March. Once you are happy you have understood these, you will need to sign the ISA transfer form, including the subscription part and complete the direct debit mandate. On 7th May, the whole of your ISA account was transferred, including any uninvested cash. If you decided to continue to subscribe into Eurotrust with Edinburgh Partners the uninvested cash on your account will have been used to purchase shares on the next available dealing day following the transfer. Your direct debits will be collected by BNP Paribas and invested in the Edinburgh Partners ISA, according to your instructions, from this point on.
What will happen between now and the transfer date?
F&C will continue to collect your monthly direct debit and this will be held as cash in your ISA account until the transfer takes place.
8b. I hold Eurotrust in my F&C ISA. Can I transfer to the Edinburgh Partners ISA? (For investors who hold Eurotrust and other shares in the F&C ISA and subscribe by monthly direct debit.)
Yes, you can transfer the Eurotrust shares from your F&C ISA to an Edinburgh Partners ISA.
I have decided to transfer my Eurotrust shares to Edinburgh Partners and continue to invest into the Eurotrust. What will happen next?
You will need to read the Key Features and Terms & Conditions which was sent out to you at the end of March. Once you are happy you have understood these, you will need to sign the transfer form, including the subscription part and complete the direct debit mandate. Please note that you can only subscribe to one Stocks & Shares ISA per tax year. This will mean that you can transfer your Eurotrust shares to Edinburgh Partners, but in each tax year you will have to choose whether to subscribe to your Edinburgh Partners ISA or to your F&C ISA. If you intend to subscribe to your Edinburgh Partners ISA in 2010/2011, you will have to indicate on the transfer form that you are transferring a 'current' ISA, and you will not be able to subscribe to your F&C ISA in 2010/2011.
On 7th May the Eurotrust shares held in your ISA account were transferred, together with any uninvested cash. If you decided to continue to subscribe into Eurotrust with Edinburgh Partners the uninvested cash on your account will have been used to purchase shares on the next available dealing day following the transfer. Your direct debits will be collected by BNP Paribas and invested in the Edinburgh Partners ISA, according to your instructions, from this point on.
What do I need to do if I want to transfer my Eurotrust shares to Edinburgh Partners and continue to invest in my other F&C funds?
You will need to read the Key Features and Terms & Conditions. Once you are happy you have understood these, you will need to sign the transfer form.
Please note that you can only subscribe to one Stocks & Shares ISA per tax year. This will mean that you can transfer your Eurotrust shares to your Edinburgh Partners ISA and continue to subscribe into your other funds with F&C. On the transfer form you should indicate that you are transferring a 'previous year' ISA. You will not be permitted to make subscriptions into your Edinburgh Partners ISA in tax year 2010/2011.
On 7th May your Eurotrust shares will have been transferred, together with any uninvested cash from tax year 2009/2010 subscriptions.
8c. I hold Eurotrust in my F&C ISA. Can I transfer to the Edinburgh Partners ISA? (For investors who only hold Eurotrust shares in the F&C ISA and do not subscribe by monthly direct debit.)
Yes, you can transfer your whole ISA to an Edinburgh Partners ISA. You will need to read the Key Features and Terms & Conditions which was sent out to you at the end of March. Once you are happy you have understood these, you will need to sign the ISA transfer form. On the transfer form you should indicate that you are transferring a 'previous year' ISA and on 7th May the whole of your ISA account will have been transferred.
8d. I hold Eurotrust in my F&C ISA. Can I transfer to the Edinburgh Partners ISA? (For investors who hold Eurotrust and other shares in the F&C ISA and do not subscribe by monthly direct debit.)
Yes, you can transfer the Eurotrust shares from your F&C ISA to an Edinburgh Partners ISA. You will need to read the Key Features and Terms & Conditions which was sent out to you at the end of March. Once you are happy you have understood these, you will need to sign the ISA transfer form. On the transfer form you should indicate that you are transferring a 'previous year' ISA. On 7th May your Eurotrust shares will have been transferred.
9. Why is the Edinburgh Partners savings scheme covered by a French investor compensation scheme rather than by the UK Financial Services Compensation Scheme (FSCS)?
The plan manager for the Edinburgh Partners savings scheme is BNP Paribas Securities Services, based in Peterborough. This is a subsidiary of the French bank BNP Paribas, and this is why the French compensation scheme applies. In the unlikely event that an investor has to rely on the compensation scheme, the French scheme is more generous than the UK one, providing cover for assets worth up to 70,000 Euros (around £60,000 based on mid-February 2010 exchange rates) rather than £48,000.
10. Why is there an annual charge for the ISA when there is no annual charge for the share plan?
Most ISA providers charge an annual fee for running ISA accounts, because of the additional overheads for the plan manager in operating these accounts. These overheads include monitoring of subscriptions against the relevant subscription limits, compiling statistical returns to submit to HMRC and being subject to HMRC inspection visits.
11. Do Edinburgh Partners offer a plan which is equivalent to F&C's Children's Investment Plan?
The F&C Children's Investment Plan is the same as their Private Investor Plan, but with a designation indicating that assets are held for the benefit of a child. In the Edinburgh Partners scheme, a designation can be applied to a Share Plan, providing an equivalent arrangement.
12. Why does my ISA letter refer to previous tax year / current tax year holdings?
The ISA regulations have specific requirements for transfers to another ISA provider where the transfer includes subscriptions made in the current tax year (or investments bought with those subscriptions). The transfer will take place after 5 April 2010, so will be made in the 2010/2011 tax year. As F&C have not allowed purchases of Eurotrust shares in your ISA since 1 February 2010, there will be no Eurotrust shares in your ISA which are 'current tax year' investments. However, if you have continued to subscribe to your F&C ISA by direct debit after 1 February, you may have some uninvested cash which will be 'current tax year'. See question 8 for further information about ISA transfer options, or contact F&C to clarify the situation with your own account.
13. What are the new ISIN, SEDOL and ticker/EPIC/TIDM codes?
The ISIN and SEDOL codes have remained the same. The only change is to the code (ticker/EPIC/TIDM) which is now EUT (was FCU).
ISIN: GB0003295010
SEDOL: 0329501
14. Does a transfer of my shares to the Edinburgh Partners savings scheme constitute a chargeable event for capital gains tax?
No. As there is no change of beneficial owner, there is no capital gains tax liability arising from the transfer of shares to the Edinburgh Partners scheme. Any capital gains tax liability would arise if you sell your shares rather than transferring.
15. Does a transfer of my shares to the main register constitute a chargeable event for capital gains tax?
No. As there is no change of beneficial owner, there is no capital gains tax liability arising from the transfer of shares to the main register. Any capital gains tax liability would arise if you sell your shares rather than transferring.
16. Where can I find details of the share price for The European Investment Trust?
The share price for The European Investment Trust is published in the Financial Times, The Times and The Daily Telegraph on a daily basis. Share price information is also available online on the London Stock Exchange web site (www.londonstockexchange.com) and various other financial websites.
On February 11th it was confirmed that The European Investment Trust is listed correctly within The Daily Telegraph and The Times. It was already showing correctly in the Financial Times. Previously The Times was quoting it under its old name of F&C Eurotrust but with an accurate share price, and The Daily Telegraph was also quoting under the old name but without a share price.
If a share price is required (e.g. for investors calling who does not have web access) then please follow the link below to the LSE site for a current up to date price The European Investment Trust share price.
17. Why are some financial data/research websites still showing old F&C Eurotrust information under the new Trust name?
As at February 12th, some websites are still showing old F&C Eurotrust data under the new Trust name (e.g. Hemscott). We understand that it takes a short while for the new data to filter through to these sites, depending on the source of the data. Some of the data is refreshed weekly and other sites are refreshed monthly.
The LSE site (see link below) only refreshes its company information on a monthly basis.
http://www.londonstockexchange.com/exchange/prices-and-news/stocks/summary/company-summary.html?fourWayKey=GB0003295010GBGBXSSMM
18. I hold my shares on the main register in certificated form. Will I get a new certificate showing the company name now changed to The European Investment Trust plc?
No, it is not necessary for the registrar to issue new certificates to shareholders as a result of the change of company name. Your existing certificate is still valid. (However, if a new certificate is issued to you, for example as a result of a change of address, or as a replacement for a lost certificate, the new certificate will show the new company name.)
19. Is The European Investment Trust plc a new company?
No, all that has happened is that the Company has appointed Edinburgh Partners Limited as its investment manager and the name of the company has changed, from Foreign & Colonial Eurotrust plc to The European Investment Trust plc. The Company continues to be listed on The London Stock Exchange (and on the New Zealand Stock Exchange), but following the change of name, its trading symbol has also changed, from FCU to EUT.
Additional Information Relating to the Share Plan and ISA
A: What is a Share Plan?
The Share Plan allows you to invest into the shares of an Investment Trust Company. There are no restrictions on how much you can invest. Unlike an ISA there are no tax benefits associated with this type of investment. You may invest in a both a Savings Scheme and an ISA in the same tax year.
You can only invest in our Share Plan if you are aged 18 or over. In addition:
. You can make a gift to someone who is aged 18 or over;
. You can apply individually or jointly with up to three other persons;
. You can attach a designation to an account, for example, if you wish to designate investments for children.
B: What is an ISA?
An ISA is a tax-efficient savings vehicle. They are available for investment by lump sums or regular monthly payments within limits set by the Government. There are two types of ISA: stocks & shares ISAs and cash ISAs. BNP Paribas/Edinburgh Partners do not offer the cash ISA.
From April 6th 2010 you will be able to invest a total of £10,200, of which up to £5,100 can be invested into a cash ISA and the balance into a stocks & shares ISA, or you can invest the whole £10,200 into a stocks & shares ISA.
C: Who can invest in a Stocks & Shares ISA?
Anyone aged 18 or over may invest in a stocks & shares ISA, provided they are resident or ordinarily resident in the UK for tax purposes. This includes government employees serving overseas and their spouses or civil partners. ISAs may not be taken out by companies or in joint names.
D: How do I invest?
Investors in the F&C Share Plan or ISA can transfer their Eurotrust shares into the BNP Paribas-Edinburgh Partners Share Scheme and ISA. You can make lump sum or regular payments or both. You can start, stop or vary your payments at any time.
Lump sum investment
You may invest by lump sum with a minimum initial investment of £500. You may make extra lump sum investments subject to a minimum of £250.
Regular payments
Regular payments may be monthly. The minimum regular investment is £50. Regular savings are collected by direct debit from your bank or building society on the 1st (or the next business day) of each month. You can vary your regular savings at any time by notifying us in writing, such notification to be received by us no later than the 15th day of the month prior to the month in which you wish the payments to change.
Lump sum payments and initial monthly savings payments are made by cheque, payable to BNP Paribas Securities Services client account. Once your valid application and payment are received, funds will be invested on the next available dealing day.
Regular payments are collected by direct debit on or around the 1st of the month and can be collected monthly or quarterly.
If you are making regular investments into an ISA, you can top up your ISA subscription to the maximum allowance each year by sending us a personal or bank/building society endorsed cheque for the top up amount.
You may also transfer, in cash, an existing stocks & shares or cash ISA by completing the stocks & shares ISA transfer application form. Please note that you cannot transfer a stocks & shares ISA to a cash ISA.
Cheques must be denominated in sterling otherwise they will not be accepted.
Applications with 'PO Box' or 'care of' address are not acceptable unless your permanent address is a retirement home, nursing home or hospice.
E: Can I make a gift of shares?
You can make a gift to someone who is 18 years or over, by investing in the Share Plan in the name of the recipient. Both you and the recipient can make further lump sum investments into the Share Plan. You should consult a professional adviser about the tax implications of making gifts.
F: Can I make an investment for children?
You can set up a Share Plan in your own name, but you can title the account in such a way that it identifies it for your records. This way you can track investments intended for children.
G: Can I switch between investment options?
Yes, you can sell your shares and switch between investments within the plan at any time (subject to the minimum amounts) by instructing us in writing. Shares will normally be sold on the next dealing day after receipt of your instruction and the purchase of shares will take place on the same day. The dealing charge of 0.2% will apply on both the sale and the purchase of shares, and the government stamp duty of 0.5% will apply to the purchase.
H: How much will advice cost?
If you wish to obtain advice about the BNP Paribas-Edinburgh Partners Savings Scheme and ISA you should contact an Independent Financial Adviser ('IFA'). Your adviser will give you details about the cost of your advice.
I: How do I stop or amend my contributions?
You may stop or amend your regular contributions at any time. Your written instruction must reach us by the 15th of the month in which you wish the change to take place.
J: How do I notify you of a change in my personal details?
All notifications of change of address for a single named account can be accepted in writing or via our online service once you have registered.
For any other change of personal details, or for accounts held in more than one name, details must be submitted in writing to BNP Paribas, accompanied by appropriate signatures and documentation if required.
We reserve the right to accept other methods of instruction at our discretion.
K: What documentation do I receive?
An acknowledgement letter will be issued following our receipt of your application.
As the shares are held in a nominee account, no share certificates or contract notes will be issued.
Every six months we will send you a statement as at 5th April and 5th October. This will give a current valuation of the underlying investment and details of all transactions. If you would like to receive these on a quarterly basis, you may request this by writing to BNP Paribas. The extra statements will be sent out as at 5th January and 5th July.
Copies of the latest Annual (and Interim) Reports & Accounts are available free of charge.
Share Plan investors will also receive a consolidated tax voucher with the April statement each year.
L: How is my money invested?
Once you have transferred your shares into the Share Plan / ISA, purchases and sales are dealt daily. Shares are usually combined for more than one account and this combination of orders may result in you obtaining a more or less favourable price than if the order had been executed separately.
Lump sum: Once your valid application and payment are received funds will be invested on the next available dealing day.
Regular savings: We collect money from your bank account on or around the 1st of each month. This money is not invested until five business days have passed following collection, which is to allow the clearance of your subscription.
M: How are my dividends paid or reinvested?
If income is paid from the Trust you may elect to have it reinvested into the same class of share subject to a minimum reinvestment of amount of £10.
Alternatively, you may request that your income is paid directly to your bank or building society account. You must provide us with either a void cheque or paying in slip before we can send payment to your bank or building society. If we do not receive these income will be reinvested. Income will be paid shortly after the dividend payment date and will only be paid to you where the amount exceeds £10; otherwise it will remain in your Plan.
N): Guidance for existing overseas investors through F&C:
a) Overseas investors who are not US persons can transfer their plan (either ISA or Savings Scheme) to Edinburgh Partners.
- You may not invest further into the Savings Scheme unless you are a citizen, national or resident in the UK.
- You may not invest further into the ISA unless you are resident or ordinarily resident in the UK for tax purposes; this includes government employees serving overseas and their spouses or civil partners.
b) US persons cannot transfer their plans and therefore will have to sell their Eurotrust holding.
The meaning of US person shall include, but not be limited to, trusts, charitable trusts, partnerships and corporations organised under the laws of the United States or deemed to be so organised (where "United States" means the United States of America, its territories and possessions, all areas subject to its jurisdiction or any political sub-division thereof, any state of the United States of America and the District of Columbia), green card holders, persons substantially present in the US and residents of the United States.
It is your responsibility to satisfy yourself that you are permitted to transfer and invest into these plans.
Contact Details
BNP Paribas Edinburgh Partners helpline Contact details
Investors who require additional information about the administration of the BNP Paribas-Edinburgh Partners Savings Scheme and ISA or about the process of transferring their plan should telephone BNP Paribas/Edinburgh Partners helpline on 0845 358 1100
F&C Contact details
Investors who have questions about specific details of their plan and Eurotrust holdings, or about switching to other F&C investments, should telephone F&C on: 0845 600 3030
Edinburgh Partners Contact details
Investors requiring additional information to that provided above can email Edinburgh Partners:
eurotrustenquiries@edpam.com