Closed-end Fund Times: November 4-10

Top news this week includes troubles afoot at Gartmore European and Fidelity China to issue more shares

Jackie Beard, FCSI, 10 November, 2010 | 10:14AM
Facebook Twitter LinkedIn

Latest News
The board of Allianz Dresdner Endowment 2010 (AZD) wish to bring forward the date for winding up the company to 1 December from 31 December 2010. The majority of endowment policies held by the company have either matured or been surrendered. An EGM will be held on 1 December at which shareholders will be asked to vote on this proposal.

BlackRock Absolute Return (BARE) is proposing a reverse auction tender offer for up to 5% of each of the three currency share classes. Full details will be released around 13 December 2010.

BlackRock Latin American (BRLA) has applied to the UK Listing Authority for a block listing of 10 million ordinary shares.

Subscription shareholders of Ecofin Water & Power Opps (ECWO) can subscribe for ordinary shares during the 28-day period ending 30 November 2010. At the time of writing, the ordinary shares trade at a discount of nearly 25% to the fund’s NAV.

Egypt Trust (EGP) has announced the results of its latest tender offer ending 30 September 2010, in which it offered to redeem up to 10% of its ordinary share capital. Just 301 shares, 0.015% of share capital, were redeemed. The next redemption opportunity requires shareholders to register their request by 1 December 2010. Shareholders should be aware of the 5% redemption fee that is levied by the company.

It’s no surprise to see that Fidelity China Special Situations (FCSS) has announced a proposed new issue of equity and placing. The open offer is expected to take place early next year; meanwhile the company has the ability to issue a further 20.5 million shares through its block listing facility, which was granted in June 2010.

The board of Gartmore European (GEO) is in discussions with the group following portfolio manager Roger Guy’s decision to retire from the group. Also leaving the European team is Darrell O’Dea, who has only been at the firm a few months. In addition, CIO Dominic Rossi is leaving to join Fidelity and the firm is now up for sale. We expect the board to take decisive action on behalf of the company’s shareholders and restore some stability after the troubles of 2010. Year to date the fund has underperformed both its benchmark and its peers, on both a price and NAV basis.

Gartmore Growth Opportunities (GGOR) has closed its block listing, under which it had over 1.17million shares unallotted. This means no further shares will be issued. A special ordinary dividend of 30 pence per share is conditional upon shareholders approving the reconstruction of the company.

HgCapital Trust (HGT) will participate in the acquisition of a majority stake in ATC Group, alongside other institutional clients of HgCapital.

The board of Invesco Perpetual AIM VCT (IPA) is in discussions with the group regarding the departure of investment manager Andy Crossley. His OEIC is being merged into Invesco Perpetual UK Smaller Companies Equity fund, managed by Richard Smith.

The Board of JPMorgan Brazil (JPB) continues with its attempt to manage the premium at which the shares trade. Having issued an additional 4.7 million shares, or 10% of the ordinary share capital at launch, the fund still trades at a premium of around 8%. The company plans to issue further ordinary shares equal to 30% of the current ordinary share capital; they will once again be seeking a resolution to disapply pre-emption rights in respect of this issue.

Melchior Japan (MJT) has had its wind-up proposal approved by shareholders at the General Meeting on 3 November 2010. The listing of the shares is expected to be cancelled on 10 December 2010.

New City High Yield (NCYF) has published its prospectus giving details of the new share issue. Shares will be issued at a premium of 2.75% to NAV per ordinary share at the close of business 17 November 2010, or, if higher, a price equal to 90% of the closing middle market price of an ordinary share.

Caution is advised by the board of New Europe Property Investment (NEPI). The company still plans to propose a rights issue, as first outlined in an announcement on 21 September 2010, but is still in discussions regarding a potential acquisition. If successful, this could have a material impact on the share price.

The manager of NR Nordic & Russia Properties (NRP), LR Real Estate Asset Management AB, has served 12 months’ notice on the company to terminate its management agreement on 15 November 2011. This follows the company’s announcement in July that it is proceeding with an orderly realisation of assets.

There has been a change of benchmark at TR European Growth (TRG), approved by shareholders on 8 November 2010. It has moved from a composite of 50% of the total return of the HSBC Smaller Europe (ex UK) index and 50% of the total return of the S&P/Citigroup EMI Europe (ex UK) index, to 100% of the former. This is being applied retrospectively from 1 July 2010.

Trinity Capital (TRC) is holding an EGM on 29 November 2010. They will put forward proposals to appoint a new director, to adopt a new directors’ incentive plan and renew the authority to buy back shares.

Director Appointments
Epicure Qatar Equity Opp (EQEO) – Neil Benedict
NR Nordic & Russia Properties (NRP) – David Hunter
Quorum Oil & Gas Technology (QOGT) – Arthur Copple

Director Resignations/Retirements
Jupiter Primadonna Growth (JPG) – Adrian Paterson
TR European Growth (TRG) – Jochen Neynaber

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.

Facebook Twitter LinkedIn

About Author