Invesco Ups Holding in Raven Russia to One Third

CEF TIMES September 7-13: Confirmation of the interim dividend payout sees Invesco increase its stake in Raven Russia to almost 30%

Szymon Idzikowski 14 September, 2011 | 11:00AM
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Argo Real Estate Opps (AREO): The company has changed its investment policy in order to allow its life to be extended by five years. The windup date has been pushed back to 2018.

B.P.Marsh & Partners (BPM): Panmure Gordon has replaced Arbuthnot Securities as the company's nominated adviser and broker.

Cazenove Absolute Equity (CAEL): For the second week in succession, BNP Paribas Arbitrage has increased its stake in the hedge fund, this time by nearly 5% to almost 19%.

CQS RIG Finance (RIG): Having added a further 1.9% stake in this global high income fund to its portfolio, Ironsides Partners has strengthened its position as the largest shareholder of the fund. It currently holds nearly 20%, followed by Baillie Gifford & Company with a 14.4% stake in the company. Ironsides Partners has been steadily building its stake in CQS RIG Finance since the beginning of the year, while Baillie Gifford has decreased its position in the fund twice since mid June.

Invesco Property Income (IPI): Shareholders of this direct property fund have voted in favour of the change to the investment policy. The fund’s primary objective now is to repay borrowings by September 2014, mainly through the disposal of some of the group’s assets. Until then, neither new investments nor borrowings will be made. Once these obligations are met, the fund’s future will be reviewed.

Pacific Assets (PAC): F&C Asset Management has slashed its stake in the fund from 5.5% to less than 2%. Conversely, City of London has increased its stake by 2.8% to over 7%, making it the fourth largest shareholder. Pacific Assets currently trades at a discount to its NAV of almost 12%, compared with its 12-month average of 8.3%.

Raven Russia (RUS): The board of Raven Russia has reinstated its plans to pay an interim dividend of 1.25p per ordinary share. They had considered the suspension of this payment due to the hefty discount at which the fund was trading, and replacing it with a tender offer buyback of its ordinary shares in a ratio of 1 for 46, a 22% premium to the share price. Since then, the price has increased by almost 18%. Shareholders now have a choice to receive the dividend or to participate in the buyback programme. The payment date is scheduled for November 18. Following the announcement, Invesco Limited has added an additional 9.6% stake to its holding in the fund to its portfolio, on top of the 23% of ordinary share capital it already held.

Real Estate Credit Investments (RECI): The board of directors has proposed a change of a fund’s trading denomination currency from EUR to GBP. The proposal will be voted at the company’s AGM on September 16. If approved, from October 3 onwards, NAVs will be published in sterling and non-sterling currency exposure will be hedged to GBP. The company also proposes to change its financial reporting currency to sterling for all accounting periods ending after October 3.

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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Szymon Idzikowski

Szymon Idzikowski  is a closed-end fund analyst with Morningstar.

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