CEF News: May 18–24
BlackRock Greater Europe’s (BRGE) recent tender offer, to purchase up to 20% of its issued share capital, was undersubscribed and only 2.3% of shares were tendered. The shares currently trade at a modest discount to NAV so we’re not surprised to see limited take-up of this offer.
CATCo Reinsurance Opps (CAT) has raised $124.4 million through its recent C share issue. As an insurance specialist, the company believes there will be increased demand for insurance protection and higher premiums following the natural catastrophes in Australia, New Zealand and Japan. The aim is also to increase diversification in the fund, which is currently heavily weighted in favour of the US. This is just the first tranche of C shares to be issued; applications for the next tranche are now open.
Indian private equity company Dhir India Investments (DHIR) has given notice to its investment manager Shiva Consultants Private Ltd, as part of the board’s move to speed up the process of realising the company’s investments. This fund is small, at just £19.5 million, and trades at a hefty discount to its NAV.
Shareholders at split-capital trust Edinburgh New Income (ENI) have approved the proposal to wind up the company, although this is still subject to the special resolution being passed at the AGM on 31 May (the redemption date for the ZDP shares).
Gearing has ticked up a little at Fidelity European Values (FEV) as the company has drawn down a loan of EUR 7.5 million for a six-month period. This takes the fund to a gearing level of 9% - still conservative.
Shareholders of UK smaller companies fund Gresham House (GHE) have voted to wind up the company over the next two years. The fund launched in 1950 and is the second-oldest fund in the AIC UK Smaller Companies sector, behind Henderson Smaller Companies. It will be a shame to see such a long-standing name disappear from the sector.