Columbia Threadneedle have recently announced that the CT Diversified Monthly Income Fund will be closed on 20th May 2024 due to a continuing decline in assets which is believed to negatively impact both the performance of the fund and the costs of operating the fund.
The fund will stop dealing in units from 12:01pm on the 17th May 2024 and will be closed on 20th May 2024. Once the fund is closed, the proceeds will be sent to investors. The last regular savings collection will be 6th May 2024.
There are three options for investors in the fund:
- Option 1 is to switch to a different fund prior to closure. Investors may choose this option at any time up to 12 noon on 17th May 2024. ISA holdings will retain the ISA wrapper once switched. Non-ISA holdings may be subject to Capital Gains Tax.
- Option 2 is to sell the units prior to closure. This is an option at any time up to 12 noon on 17th May 2024. Please note that ISA holdings will lose the ISA wrapper and non-ISA holdings may be subject to Capital Gains Tax.
- Option 3 relates to a scenario where no action is taken. In this case, Columbia Threadneedle will automatically sell the shares and send the proceeds to investors. Please note that ISA holdings will lose the ISA wrapper and non-ISA holdings may be subject to Capital Gains Tax.
If this is something that may interest you, please get in touch.
- uploaded - 13 March 2024