Fidelity European Values Slashes its Fees

CEF TIMES November 9-15: Fidelity European Values restructures its performance fee, and more news from the closed-end fund industry

Szymon Idzikowski 16 November, 2011 | 4:05PM
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Carador Income Fund (CIFU): Subject to market conditions, the £245 million fund is considering raising additional capital through a further issue of shares. The fund currently trades at a 4% premium to its NAV; it raised approximately USD 75 million through a placing of USD C shares in August.

Dexion Absolute EURO (DABE): Following a portfolio split that has created an EUR shares redemption portfolio, the board has confirmed the first payment of approximately 79% of the redemption portfolio’s NAV. The payment is expected to be made on November 16.

Edinburgh Worldwide (EWI): The company has amended its investment policy to allow the fund manager to invest in unlisted companies. The company's aggregate holdings in unlisted equity investments shall not exceed 1% of total assets.

Eastern European (EST): The board of the fund intends to exercise its rights to buy back shares up to 7.5% of the company’s shares in issue at a discount of 2% to its NAV. The fund currently trades at a 10.5% discount to its NAV compared with its 12-month average of 8.5%. The calculation date is 20 January 2012.

Fidelity European Values (FEV): We are pleased to see the board of Fidelity European Values revising its fee structure. The performance fee that can be levied for outperformance of the FTSE World Europe (ex UK) benchmark has been lowered from 20% to 15%. Also the cap on total fees payable in any one year will be reduced from 1.5% to 1%. These changes take effect in January 2012.

Finsbury Growth & Income (FGT): Following a successful share issue of £17 million and the fund’s continued propensity to trade at a small premium, the board of this £200 million fund has announced plans for a further capital raising. The resolution will be put to vote by shareholders in December.

Henderson Private Equity (HPEQ): The company has published a circular setting out details of an initial tender offer to purchase up to 17.5% of the shares in issue as part of its realisation strategy. The offer will be available to shareholders on the register on December 12.

International Biotechnology (IBT): East Riding of Yorkshire Council has increased its stake in the biotechnology and healthcare fund by almost 3%, taking it to more than 6.5%. It is now the fourth largest shareholder.

Invesco Perp Select Global Eq (IVPG): Shareholders of the fund have approved the resolution to add income generation and income growth to the investment objective and policy of the fund. Going forward, the fund will invest in global stocks with the aim of delivering long-term capital growth, income generation and income growth.

J.P. Morgan Private Equity (JPEL): The board has announced its plans to tender up to 3% of USD equity shares, 2013 ZDP shares and 2015 ZDP shares, respectively. No tender will be made for the 2017 ZDP shares at this time. The company also confirmed its intention to seek the authority to tender up to 15% of all classes of shares currently in issue at the company's next AGM to be held in 2012.

Northern 2 VCT (NTV): The company has opened a tender offer with the aim of buying back up to 10% of the issued share capital at a discount of 3% to the NAV. The fund currently trades at a 15% discount to its NAV, compared with its 12- month average of 17%. The tender offer will be closed on January 6. Shares purchased by the company will be cancelled and cash arising on their sale will be paid to shareholders by January 13.

Public Services Properties (PSPI): Shareholders of the UK direct property fund have approved plans to introduce a scrip dividend as an alternative to a cash dividend. The board plans to issue almost three million shares and pay out over £700,000 in cash as an interim dividend. The dividend will be paid on November 29 to shareholders on the register on October 14.

Standard Life Equity Income (SLET): Thomas Moore has been appointed as joint investment manager of the company. He has assisted Karen Robertson for the past two years; Robertson herself has been at the helm of this fund since November 2005. Moore joined Standard Life Investments in 2002 and has been an investment director in the UK Equity Team since 2006. He has been also co-managing Standard Life UK Equity Income Unconstrained since January 2009.

Standard Life UK Smaller Co. (SLS): The board of the fund has confirmed it will not conduct a December tender offer as a part of its regular tender plan taking place in June and December, due to the fund trading at a small premium to NAV for the last six months. Currently the fund trades at 1% discount to its NAV, as opposed to a 1- month premium of 0.25% to its NAV.

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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