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Cayenne rollover into F&C Managed Portfolio

The board of directors (the “Board”) of The Cayenne Trust plc (the “Company”) announced on 3 August 2015 its intention to bring forward the Company’s liquidation and identify a rollover option for shareholders.

The Company received a number of proposals and, after due consideration, the Board is pleased to announce that it has agreed terms with F&C Managed Portfolio Trust plc (“F&C MPT”), for it to act as the rollover vehicle for the Company.

F&C MPT is an investment trust admitted to trading on the main market of the London Stock Exchange that has two classes of shares: income shares (“MPT Income Shares”) and growth shares (“MPT Growth Shares”), each with its own portfolio investing in other investment trusts. F&C MPT is managed by Peter Hewitt, a well-respected fund of funds manager with a strong track record.

The Board believes that F&C MPT offers a similar investment proposition to the Company and that F&C MPT is a compelling rollover option offering an attractive structure and good long-term performance. This is reflected in the rating of both the MPT Income Shares and the MPT Growth Shares, which both consistently trade at a premium to net asset value.

On the liquidation of the Company, shareholders will have the right to elect for cash or to roll over into either MPT Income Shares, MPT Growth Shares, or to elect for any combination of cash, MPT Income Shares and MPT Growth Shares. The Directors of the Company, the investment manager and their associates intend to roll over approximately 2,000,000 shares in the Company into F&C MPT.

It is proposed that the MPT Income Shares and/or MPT Growth Shares issued in connection with the rollover option will be issued on the basis of a ratio of, the NAV of each rollover share in the Company, to the NAV of the MPT Income Shares and/or MPT Growth Shares plus an agreed premium, to contribute towards the costs of F&C MPT. The premium will initially be set at 1.0%, however if the value of the shares in the Company that roll over into F&C MPT exceeds GBP5m, the premium on amounts in excess of GBP5m will reduce to 0.75%, such that the premium will be at a blended level between 0.75% and 1.0%.

The average premium for the MPT Income Shares and the MPT Growth Shares over the last three months has been 1.63% and 0.76% respectively. The Company will send a circular to shareholders in due course detailing the proposals for the scheme reconstruction of the Company, the rollover option and the liquidation of the Company including details of how shareholders can elect for cash, MPT Income Shares or MPT Growth Shares, or any combination thereof.

A further announcement containing details of the general meetings to be convened by the Company will be made in due course.

TCT / FMPI / FMPG : Cayenne rollover into F&C Managed Portfolio

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