F&C Answer your queries on the Global Smaller Companies CULS


When F&C Global Smaller Companies trust announced the issuance of a CULS, with an invitation to existing shareholders to take part if they met the
[See the full post at: F&C Answer your queries on the Global Smaller Companies CULS]


Thanks for dealing with this guys at WhichInvesmtnTrust and F&C.

It’s nice to see shareholders are being listened to.


I’ll express disappointment with the reply to question 5, which is just a cut-and-paste from the prospectus and I ead read that document: hence the question, and it beginning with ‘The prospectus tells us the trigger…’. So I see the reply as a repeat of the description of the trigger rather than how FCS might apply its discretion in the matter.

‘…the Company will be able to require…the Company will be entitled to require…’

Being able/entitled to do something does tend to imply a degree of discretion rather than a compulsion.


You’re right @arkwelder. The problem with the document is it’s not written in plain English. It’s written like it’s a legal document from the Strasbourg parliament.

Really F&C, whilst I echo @DerekW’s comment that it’s encouraging that you did at least reply to our questions, the problem with this whole process is the documents don’t make for an easy read.

Surely it’s not too much to ask that you write in plain English.

Lesson for the future maybe F&C?


Thanks to WhichInvestmentTrust & F&C for the answers. So What did those people that were eligible to subscribe to the CULS actually decide to do and why?


@nicholasproy, I will confess that I had posted my questions more in hope than expectation, and I am not surprised by F&C’s answer. If the clauses had just been ‘will require’ then that would have implied a compulsory action would be taken in the event of the trigger being met. Whereas being ‘able/entitled to require’ allows wiggle room.

In defence of F&C, the prospectus has to conform to a specific set of requirements and is little different to those that have been - and have to be - produced for retail corporate bond issues. Although, some of these bond issues have been accompanied by a retail investor-friendly pamphlet that gives an overview. Food for thought for any further ITs that are thinking of issuing CULS, perhaps.

@warrantstar (and others!), just for the record, I am not a shareholder in FCS. My interest lies in what the CULS are in their own right, i.e. a bond. I haven’t made my mind up yet what to do, but I have a few extra days because any investment would have to be through the Offer for Subscription. I will say that my reaction to F&C’s reply will not have a negative impact on my decision, which will be based more along the lines of ‘what do sell to be able to raise the required amount of cash’.


Hi everybody,

-does anyone know whether these instruments can be held within an ISA?

Presumably any stockbroker can purchase them or is it only via F&C ; any replies very much apprecieted.



@john: yes, the CULS can be held in an ISA. If you are looking to buy them in the Offer for Subscription then you must do this through your ISA plan manager/broker, so if there is a restriction then it will be with the broker being unwilling or unable to make this purchase. Similarly, it will be possible to buy the CULS in the secondary markets once they are trading - assuming that there is sufficient liquidity in them.


I’d never heard of a CULS. I’ve found this forum and the other one related to it interesting because its educational.

It has caused confusion on other sites too. I use iii.co.uk and there are confused souls on there discussing this too. They’ve linked to this form here which seems to be the most informative one I’ve read.

It sounds like F&C could have handled this a little bit better though by producing an investor friendly guidance sheet like @ArkWelder suggests.