Cosh Replaces Anand at European Assets CEF

CEF TIMES October 19-25: Sam Cosh is replacing Paras Anand as the lead manager of European Assets

Szymon Idzikowski 26 October, 2011 | 4:13PM
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Baronsmead VCT (BDV): The board of Baronsmead VCT intends to launch a joint top-up offer with Baronsmead VCT 2, Baronsmead VCT 3 and Baronsmead VCT 4 to raise the sterling equivalent of up to EUR 20 million in total. Each of the companies participating in the joint offer is looking to raise EUR 5 million. Baronsmead, a £56 million UK equity fund, is currently only 74% invested, which has been the case for the last two years.

BlackStar Group (BLCK): Liberum Capital has replaced Collins Stewart Europe as adviser and broker to the Company after two years of their service.

Dragon Ukrainian Properties (DUPD): The company will hold an EGM on November 9 to seek approval to return cash to shareholders by way of a tender offer. The company intends to buy back up to 9,061,090 Ords at a price of between 1p and 35p per Ords. One penny represents a discount of approximately 97% over the middle market price of 34.5 pence per ordinary share on October 21, being the latest practicable date before the publication of the tender offer circular. The maximum price of 35 pence represents a premium of approximately 1.4% to this price. The fund traded at 35.49 pence on October 26; its market cap has halved, year to date.

El Oro (ELX): The board of the mining and utility fund has resolved to make a bonus issue to shareholders at a ratio of one new share for every existing five shares held; it will follow the dividend payment date of November 28. The company is also proposing to sub-divide its existing issued share capital on the basis that each share will be sub-divided into five issued shares, with each split share having the same rights, terms and obligations as the existing shares. The action aims to improve liquidity and the timing is expected to follow the dividend payment and bonus share issue.

European Assets (EAT): Following the departure of manager Paras Anand, Sam Cosh has been appointed lead manager of the company. He has been co-managing the company’s portfolio since the second half of 2010. He is also a co-manager of F&C European Small Cap open-end fund. Prior to joining F&C in October 2010, Cosh worked on the Pan-European Small Cap team at BNP Paribas. This is his first stint in charge of a closed-end fund.

GCP Infrastructure Invs. (GCP): The £44 million infrastructure fund announced its intention to issue C shares at an issue price of £1 per C share, with the aim of raising £60 million. Proceeds are expected to be invested in the master fund.

Golden Prospect Precious Metal (GPM): The commodities and natural resources fund has raised £18.6 million by a way of placing of over 16.5 million new shares at 112 pence per share. It currently manages over £46 million. It also intends to issue 28.5 million subscription shares to qualifying shareholders by a way of a bonus issue, on the basis of one subscription share of every two existing ones.

JPMorgan Russian Securities (JRS): The board is planning to amend its discount management policy to keep the discount below 10%; the previous target was 12%. The fund currently trades at a discount of roughly 7% to its NAV, which is in line with its 12-month average.

New Europe Property Investment (NEPI): The international direct property fund intends to raise EUR 40 million through a rights offer. With the issued rights, existing shareholders will have the option to buy 16 new shares for every 100 already held at a price of 280 pence per share. New Europe Property Investment plans to use the proceeds to fund potential acquisitions or repay existing borrowings.

Public Services Properties (PSPI): The company has called an EGM to be held on November 9 in order to seek approval to introduce a scrip dividend as an alternative to a cash dividend. If approved, the board would like to offer shareholders the opportunity to use it in lieu of the interim dividend for the first six months of the year.

Ukraine Opportunity (UKRO): The company will seek approval at the next AGM held on November 9 to renew its authority to make market purchases, up to 14.99% of the issued share capital. Despite using this facility in full since March this year, the fund currently trades at a hefty discount of nearly 55% to its NAV, compared with its 12-month discount of 48%.

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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