Edison Investment Research

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.

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.

Standard Life European Private Equity Trust - changes to investment policy, dividend policy & fees

Proposed change of trust name to Standard Life Private Equity Trust

The board of Standard Life European Private Equity Trust (SEP) is proposing changes to the trust’s investment policy to remove the current size and geographic restrictions on private equity investments. Notwithstanding, the majority of the portfolio will retain a European focus. In addition, to maximise the returns on cash held pending investment in private equity funds, the board is also proposing to broaden the investment policy in regard to cash management to incorporate listed direct private equity investments, to be utilised opportunistically in suitably liquid investment companies. To reflect the proposed changes, to be voted on by shareholders at SEP’s Annual General Meeting on 24 January 2017, the board is recommending to shareholders that they approve a change in the name of the company to Standard Life Private Equity Trust.

Lowland to issue £30m of long-term loan notes

New facility will add flexibility and enable repayment of some shorter-term debt

Lowland Investment Company (LWI) has announced it is to issue £30m in sterling-denominated loan notes. The senior unsecured private placement notes will mature in January 2037 and will carry a fixed-rate annualised coupon of 3.15%, paid in two instalments in July and January.

VinaCapital Vietnam Opportunity Fund announces divestment of major asset for at least $100m

VinaCapital Vietnam Opportunity Fund (VOF) has announced the divestment of an asset representing 7.6% of FY16 NAV, for a minimum of 65% above its most recent valuation.

Tetragon Financial Group commences US$50m tender offer

Repurchase of TFG shares at below NAV will be accretive to NAV per share

The US$50m tender offer was initially announced by Tetragon Financial Group (TFG) on 31 October in its Q316 quarterly report. It will be conducted as a “modified Dutch auction” with shareholders able to tender their TFG non-voting shares at prices ranging from US$10.80 up to US$12.00 per share. The offer is expected to expire on 8 December 2016, with the determined purchase price and any proration factor announced on 13 December 2016 and the purchase of shares settled promptly thereafter. This offer for up to US$50m follows TFG’s US$100m tender offer in June 2016 under which 10m TFG non-voting shares were repurchased.