31st May 2011 09:51
Change in strategy
The Board noted in the Report and Accounts published on 20 April 2011 that despite the strong positive return delivered by the Company's investment performance, the increase in NAV over the last two years and the reduction in the supply of the Company's Shares through reverse auction tender offers and on-market share repurchases, the share price discount to NAV of each share class has remained relatively wide.
The Board noted in the Report that it was continuing to explore different ways to address the discount for the benefit of all shareholders and it has been reviewing its options further over recent weeks.
In addition, as part of its regular communication with investors the Board has again revisited its discussions with many of the Company's major shareholders. Despite the recent NAV performance the key investor concerns remain the level of the discount and, due in part to the relatively small market capitalisation of the Company, the limited liquidity provided by each share class.
For these reasons the Board has now determined to recommend that the Company should commence a managed wind-down of its portfolio with a view to realising its investments in an orderly fashion, in a manner consistent with the principles of prudent investment management, and subsequently returning capital to shareholders.
This proposed change in strategy constitutes a material alteration to the Company's investment policy and requires shareholder approval before it can be implemented. A circular convening an Extraordinary General Meeting to seek such approval and containing further details of the managed wind-down process will be circulated to shareholders as soon as practicable.
Media Enquiries:
Ed Gascoigne-Pees - 0207 269 7132Andrew Waterworth - 0207 269 7127Financial DynamicsWill Rogers - 020 7397 1920 Chris Lunn -0207 397 1912Cenkos Securities plc
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