24th Feb 2020 11:30
(Alliance News) - Henderson Alternative Strategies Trust PLC said Monday its general meeting to vote on its new strategy will be held on March 25.
The trust, which invests in other funds and investment trusts, announced in November that it would conduct a review to assess its "competitive positioning". In its half-year, the trust's net asset value returned just 0.1%, while the FTSE World Total Return Index, the company's benchmark, gained 10.6%.
Following this, Henderson Alternative Strategies - in mid-January - said it is planning to propose voluntary liquidation following an asset realisation period after a review found that there was "little appetite" for a potential change in investment strategy.
The probe, dubbed a "root-and-branch" review, found that a shift in investment policy, to allow for more illiquid alternative investments, was the best course of action in order to fight the "persistent discount" which has blighted Henderson Alternative.
The trust added: "However, the review also concluded that there was little appetite from larger shareholders for any increase in the illiquidity of the portfolio and, for many, a preference for realising their investment in an orderly fashion."
Now, the trust has set the date for shareholder approval of the asset realisation for March 25. Shareholders will also vote on reducing the management fees the trust pays during the realisation period.
Henderson Alternative's board is unanimously recommending shareholders vote in favour of the resolutions.
In a statement on Monday, the trust said: "Given the illiquid nature of some of the company's investments, it is very difficult to provide any certainty on the timeframe for realisation. However, the board is aware that shareholders will expect some guidance on the expected timeframe and, although shareholders should place only limited reliance on this information, it is the board's current estimate that a substantial proportion of the portfolio may be realised within a few months but that the portfolio may take in the region of two years to be fully realised."
During the realisation process, Henderson Alternative plans to keep its investment trust status. Following the period, it will propose entering voluntary liquidation.
Shares in Henderson Alternative were down 1.1% in London on Monday at 303.00 pence each.
By Paul McGowan; [email protected]
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