Gartmore trust picked as Eaglet rollover option

The board of the £94m Eaglet investment trust has selected the rollover option for shareholders.

Following its refusal to support the proposals of Knox D’Arcy Investment Management to change the investment strategy of the small-cap invested trust, it has proposed the Gartmore Growth Opportunities (GGO) trust as the rollover vehicle.

In addition, the board said in a statement to the London Stock Exchange that it continues to have discussions with Unicorn, the trust’s present manager and remains open to revised proposals that it can put to shareholders alongside those from Gartmore Growth Opportunities at an extraordinary general meeting.

The board says it selected GGO as the rollover vehicle after Eaglet’s liquidation because GGO offers shareholders the opportunity to invest in a vehicle that holds both micro-cap and small-cap stocks. Also because it has a strong performance track record.

Daniel Lockyer, fund manager at iimia Investment, says iimia holds GGO in its growth portfolios and that the firm rates Gervais Williams, the manager, highly.

Lockyer adds: “The board seem to have looked at who are regarded as the best small-cap managers in the sector.

In addition, GGO offers shareholders the chance to redeem every six months and runs at a tight discount.

“This is attractive for shareholders who want exposure to small caps without worrying about a widening in discount.”