Given the choice between cash and shares in Henderson High Income, it was good to see that a sizeable proportion of Henderson Diversified Income shareholders opted to roll over their holding into Henderson High Income.

The elections in connection with the scheme were:

• Rollover option: 100,050,505 shares
• Cash option: 82,022,212 shares

On a temporary basis, the shares will be reclassified as shares with A rights (those rolling into HHI) and shares with B rights (those taking cash). The shares will trade this way on 15 January 2024. Then, before the market opens on the 16th, the scheme will take effect.

[We have published a few things highlighting the merits of switching into Henderson High Income. Nevertheless, given that investors were being asked to move into a fund with quite a different investment strategy and that they had the option of a 100% cash exit at a 1% discount to NAV (after costs), there was always the risk that most investors would take the cash option. The outcome will help boost liquidity in Henderson High Income’s shares and lower the ongoing charges ratio. With about £72m of assets transferring across, under the terms of the scheme Janus Henderson will cover all of HHI’s costs (estimated at £550,000) and about £350k of HDIV’s costs.]

HDIV / HHI : Sizeable proportion of Henderson Diversified shareholders opt for HHI shares