Prosperity CEF Considers Legal Structure Change

CEF TIMES September 14-21: Prosperity Russia Domestic attempts to close its discount and manage liquidity by converting to open-end structure

Szymon Idzikowski 22 September, 2011 | 10:41AM
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Aberdeen Development Cap (AVC): Shareholders of ADC Zeros 2010 PLC and ADC Zeros 2012 PLC, subsidiary companies of ADC, have voted in favour of their early liquidations. Both companies’ listings were suspended on the LSE on September 16.

BlackRock Greater Europe (BRGE): The board has decided to exercise its discretion to implement a tender offer, which will allow shareholders to tender all or part of their shares for cash, subject to a maximum of 20% of total number of shares outstanding. The tender offer calculation date will be November 30 and the tender price will be 98% of the NAV. The fund currently trades at around a 5.6% discount to its NAV and at the last tender offer, less than 3% of shares were tendered.

Downing Structured Opps VCT 1 (D010): Shareholders of the fund have approved a special resolution granting authority to the company to carry out share buybacks of up to 14.99% of the company’s issued ordinary B and C shares.

European Assets (EAT): Having run the fund since June 2010, Paras Anand has decided to leave F&C to join Fidelity as head of pan-European equities. Anand will continue to manage the portfolio with Sam Cosh over the coming months until his departure. In the meantime, the board will work with F&C to appoint his successor.

Henderson Global Trust (HGL): Following Henderson’s acquisition of Gartmore and rationalisation of both fund ranges, Gartmore Global Trust has changed its name to Henderson Global Trust. The fund’s investment mandate to invest in international equities remains unchanged.

International Public (INPP): Prudential Plc has increased its stake by 1.8% to over 7.7%, which makes it the third largest shareholder of the fund, after Schroder Investment and Investec Wealth & Investment.

Marwyn Value Investors (MVI): Shareholders of the fund have approved a special resolution granting authority to the company to buy back shares, up to 14.99% of the company’s issued share capital.

Northern Aim VCT (NNA): Shareholders of the fund have voted in favour of placing the company into voluntary liquidation and the acquisition of all its assets and liabilities by Northern 3 VCT. Once completed, Northern 3 VCT will issue new ordinary shares to the company’s shareholders.

Prosperity Russia Domestic (PRDF): Due to concerns over the fund’s discount, and an improvement in liquidity of the underlying holdings, the board of directors has announced proposals to convert the fund to an open-ended structure. The proposal will be put to shareholders’ vote by the end of the year and, if approved, the change will be implemented in the first quarter of 2012. The board is also considering listing the fund on an alternative market, to broaden its shareholder base and make it more attractive to a wider number of investors. Within the last 12 months, Prosperity Russia Domestic has traded within the range of 20% discount and 9% premium to its NAV, with the 12- month average of a 13% discount. It currently trades at a 6.4% discount to its NAV.

Strathdon Investment (STV): The board of directors of Strathdon Investments proposes expansion of the current investment policy of investing in unquoted companies. The proposal will be voted by shareholders in the beginning of October.

Utilico Emerging Markets (UEM): Subject to shareholders’ approval, the company is planning to delist its shares from AIM and apply for admission to trading on LSE’s main market. The proposal will be voted on at the beginning of October. You can learn more about the differences in the two exchanges by reading our Solution

VinaCapital Vietnam Opp Fund (VOF): Shareholders of the fund are to vote on a proposal to introduce a buyback program. This would give the fund board the authority to make both on-market and off-market purchases of issued shares and the flexibility and discretion to set the parameters for such purchases.

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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