Schroders Pulls the Plug on New Commodities Trust

CEF TIMES: Citing uncertain investor sentiment on commodities, Schroders has decided to table its planned commodities trust until the investment climate is more favourable

Jackie Beard, FCSI, 22 June, 2011 | 11:08AM
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CEF News: June15-21
Atrium European Real Estate (ATRS): Atrium European Real Estate has finally settled its dispute with Meinl Bank; further, it has cut all ties from hereon. The settlement must become fully effective by January 2012 and existing business relations will be unwound as soon as possible. This resolution should allow the company to move forward at last.

Elephant Capital (ECAP): Indian private equity fund Elephant Capital has announced the results of its tender offer; just over 3% of shares in issue were offered for tender. The offer is still subject to some conditions being met, including the High Court of the Isle of Man approving the reduction in share capital.

Mission Capital (MCAP): Mission Capital is seeking approval from its shareholders to change its name to Quindell Portfolio. This follows its acquisition of Quindell Ltd in May and a subsequent shift in its focus. More details are expected from the company soon.

New Europe Property Investments (NEPI): New Europe Property Investments has had approval for its shares to be admitted to the Bucharest Stock Exchange, effective 20 June 2011. This is in addition to its listings on the AIM market of the London Stock Exchange and also the Johannesburg Stock Exchange. Since 2009, the fund has focused on investing in Romanian property and, at 30 June 2010, had more than 86% invested in this area. Thus, the additional listing on the Bucharest Stock Exchange makes sense and should encourage interest from local investors.

Schroders Commodities Trust: Schroders has pulled the plug on its Commodities Trust launch, citing uncertain investor sentiment on commodities. The firm says it will reconsider launching the fund when sentiment is more favourable. This is a disappointment for the CEF sector as a whole and for the commodities sector as it would have offered something different from its peers, by managers with a strong track record in their existing investment vehicles.

Trading Emissions (TRE): Trading Emissions has received offers for both its private equity portfolio and, separately, its carbon portfolio. Given the fund is already 49% in cash (at 31 December 2010), these are the fund’s only remaining investments.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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