Pacific Assets Mulls Broadening Investment Mandate

CEF TIMES: The board of Pacific Assets Trust is proposing that new investment managers First State hold equities listed outside Asia Pacific with activities focused in the region

Jackie Beard, FCSI, 30 March, 2011 | 11:04AM
Facebook Twitter LinkedIn

CEF News: March 24-30
The board of BlackRock Greater Europe (BRGE) is introducing a tender offer, for up to 20% of the fund’s share capital at 98% of NAV. The calculation date will be 31 May 2011. At the time of writing, the shares trade at a discount of just 3% to NAV so there’s little for shareholders to gain by taking up this tender offer right now.

Develica Deutschland (DDE) will see its share listing on AIM cancelled on 4th April, as shareholders approved the resolution to wind up the company and return cash to shareholders.

Shareholders in Dexion Trading (DTL) have approved the continuation of the company. This vote was needed because the fund’s discount control mechanism was triggered earlier this year. However, the story is different at Dexion Commodities (DCL) where shareholders have approved a wind-up of the company. Thus it will now cease to make new investments and will start to realise its portfolio. This is despite the change in strategy that was implemented in July 2009, when the fund became biased towards commodities. Furthermore, at Dexion Absolute, while shareholders in the GBP and USD shares approved their continuation, the EUR shareholders did not. The board must therefore put forward redemption proposals within the next two months.

The board of Pacific Assets (PAC) is proposing a change to the investment policy, to allow the new investment managers, First State, to hold up to 20% in equities listed outside the Asia Pacific region but whose activities are focused in this region. This is consistent with how First State manages their Elite- and AAA-rated First State Asia Pacific OEIC and, in our view, is a sensible move for both the manager and the fund’s shareholders.

Shareholders in Russian equity fund Prosperity Voskhod (PVF) will be asked to vote on the continuation of the company in early June, as it approaches its five-year lifespan in October 2011. If the company’s continuation is approved, the board plans to introduce a tender offer in June for up to 10% of the company’s share capital.

A merger of Wichford (WICH) and Redefine (RDF) is likely this year, in the expectation shareholders in both companies approve such a move. Wichford is a UK property company, whereas Redefine invests in property across Europe. The two combined would give investors a more diversified portfolio, although that may not fit their individual portfolios.

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

 

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures