Mel Jenner
19 January 2017

The Merchants Trust announces benchmark change

Performance measure moved from FTSE 100 to FTSE All-Share index

The Merchants Trust (MRCH) has announced that it will be changing its benchmark with effect from 1 February 2017.

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Sarah Godfrey
5 January 2017 · 2 min read

European Assets Trust declares dividend for 2017

Fund pays distributions equal to 6% of year-end net asset value


European Assets Trust (EAT) has today declared its dividend for 2017. The fund has a policy of making distributions equal to 6% of year-end net asset value (in euros), paid in three instalments at the end of January, May and August.

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Gavin Wood
23 December 2016 · 2 min read

Tetragon Financial Group adopts IFRS reporting from 31 December 2016

Incentive fee crystallised to be paid in shares, restricted for five years

Tetragon Financial Group (TFG) has announced that it is adopting IFRS reporting for accounting periods ending on and after 31 December 2016. IFRS NAV is expected to be substantially the same as fair value NAV, which TFG has been reporting since September 2015. However, moving from US GAAP to IFRS increases the reported NAV of certain TFG Asset Management businesses, principally LCM and Polygon, to reflect their fair value, and will crystallise an incentive fee payable to TFG’s investment manager, Tetragon Financial Management (TFM). This incentive fee will be paid in shares, held in escrow until 31 December 2021, and subject to a clawback mechanism. Based on fair value NAV at 30 September 2016, the incentive fee would have been US$27.1m, as stated in TFG’s third quarter report.

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Gavin Wood
8 December 2016 · 2 min read

Deutsche Beteiligungs – DBAG Fund VI final investment; DBAG Fund VII investment period starts

DBAG Fund VI will be 86% invested after Dieter Braun transaction

Deutsche Beteiligungs (DBAG) has announced that it will invest up to €5.9m for a 13.1% interest in Dieter Braun (Braun), a supplier of cable assemblies to the automotive industry (one of DBAG’s core sectors of expertise). DBAG is co-investing alongside DBAG Fund VI in the management buyout of Braun from financial investor Seafort Advisors. This represents the final investment by DBAG Fund VI, which will be 86% invested following the transaction, and therefore also marks the commencement of the investment period for newly launched €1.0bn DBAG Fund VII.

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Gavin Wood
7 December 2016 · 2 min read

Witan revises performance benchmark weightings from 2017

The trust’s investment approach remains unchanged

Following a review, Witan Investment Trust (WTAN) has announced changes in the composition of its performance benchmark, which will take effect from 2017. The trust’s investment approach remains unchanged and the revisions to the benchmark reflect changes in the investment universe from which the majority of portfolio holdings are selected. Witan’s composite benchmark provides a reference for performance comparison rather than a guideline for portfolio allocations. The benchmark has evolved over time, with the current benchmark in place since October 2007.

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Sarah Godfrey
6 December 2016 · 4 min read

Acorn Income Fund announces rollover proposal for 2017 ZDPs


Extending life to 2022 with 3.85% pa gross redemption yield


Acorn Income Fund (AIF) has published proposals to extend the maturity of its 2017 zero-dividend preference shares (ZDPs) by five years. The ZDPs were issued at 100p in December 2011 with a maturity date of 31 January 2017 and a final capital entitlement of 138p, equating to a gross redemption yield of 6.5% pa. Following positive performance from AIF – which invests most of its assets in a portfolio of UK smaller company shares managed by Unicorn Asset Management, and a smaller proportion in a portfolio of high-yielding securities managed by Premier Asset Management – the 2017 ZDPs are set to meet their final capital entitlement in full.

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