#543770
Postby simoan » November 4th, 2022, 11:37 am
I re-read the AGM circular again last night, so a few observations:
1. The last day for trading in the shares is actually the close next Wednesday (9th). So only three trading days next week. I had previously thought it was the 10th but that deadline is for cash settlement only.
2. The Initial distribution paid before Xmas is expected to be ~90% of the portfolio by value.
The Proposals involve the Company being placed into Members’ Voluntary Liquidation. If Resolution 1 is passed and the Joint Liquidators are appointed, the Joint Liquidators will wind up the Company in accordance with the Insolvency Act. It is currently expected that approximately 90 per cent. of the Portfolio (by value) will be realised, and converted into sterling, by 11 December 2022 (the “Initial Realisation”). The Joint Liquidators would expect to distribute around 99 per cent. of the proceeds of the Initial Realisation (holding back an amount to cover the costs of the Proposals and the amount attributable to the Liquidation Fund, described below), on or around 18 December 2022 to those Shareholders appearing on the Register as at the Record Date (the “Initial Distribution”).
3. If the vote goes through the new investment policy will be in force as follows:
The Company’s policy is to seek to realise its portfolio of assets whilst seeking to comply at all times with the conditions necessary to maintain the Company’s investment trust status. Cash held at any time may be invested in:
i. cash or cash equivalents, money market instruments, bonds, commercial paper or other debt obligations with banks or other counterparties having a single-A (or equivalent) or higher credit rating as determined by an internationally recognised rating agency; or
ii. any “government and public securities” as defined for the purposes of the FCA rules.
In general, the Company will not use portfolio management techniques such as interest rate hedging and credit default swaps. However, the Company may use currency hedging, through derivatives if necessary, as a portfolio management technique. Whilst the Company, generally, will not hedge its currency exposure, it does reserve the right to do so in the circumstances where, in the opinion of the Investment Manager, a significant depreciation of a currency has become likely but the Investment Manager continues owning the companies in the portfolio denominated in that currency and where the cost of hedging that currency is unlikely, in the opinion of the Investment Manager, to extinguish any gains from hedging.”.
4. The latest NAV as of close yesterday (3rd Nov) is 1352p. You can still currently buy at a 4.8% discount (bear in mind, if you allow for the 1% cost withheld in the initial distribution it's really only 3.8%) if you're feeling brave. Not me, I might add. I'm done and will just wait for the result of the vote, and hopefully, the December distribution to hit my account.
All the best, Si