Shareholders of the Genesis Emerging Markets investment trust have voted in favour of Fidelity Investment Management and its new investment philosophy, with realignment of the portfolio is now expected to start next week.
In an Emergency General Meeting today (1 October) shareholders were asked to vote to change the company's investment objective and investment policy; change the company name; and a tender offer.
All three proposals were approved with 72.3% voting in favour of the change of objective and investment policy, 96.7% approving the new company name and 95.6% voting in favour of a tender offer.
The new investment policy allows for the use of derivatives and shorting, as well as investment in unlisted companies,
Fidelity will take on the management of the £1.2bn trust on 4 October and the company will change to Fidelity Emerging Markets Limited.
Nick Price, now lead portfolio manager of the trust, said significant work had been done in the background meaning the managers were in a position to realign the portfolio from next week.
He added: "Chris Tennant, the co-portfolio manager, and I are delighted to have been asked to take over as managers of the newly named Fidelity Emerging Markets Limited. We would like to thank you for the faith that you, as shareholders, and the board have put in us."
Hélène Ploix, chair of the board of directors said "We are very pleased with the substantial support shown by shareholders for the proposed changes to the Company's investment management."
In September Genesis Investment Management argued that investors should be offered the opportunity to full exit their position given the major change to investment policy and style of the fund.
Under the current agreement shareholders have been offered the chance to sell up to 25% of the fund at a 2% discount to net asset value (NAV). However, this is pro-rated between shareholders, meaning if all take advantage of this offer, each investor would be capped at 25% of their individual holding.