Ellerston de-lists fund
Glen Poswell
Ellerston Capital will de-list its Ellerston GEMS Fund from the Australian Securities Exchange (ASX) as a result of its disappointing trading price.
The net asset value (NAV) of the fund stood at $2.33 per unit on July 31, compared to its ASX closing price of $1.78.
Ellerston chief executive of Glenn Poswell said the board believed the ASX listing did not reflect the true value of the units in the fund.
“The board believes it is in the best interests of all unit holders to de-list the fund from the ASX and to introduce a series of redemption facilities to provide unit holders in the fund with liquidity, should they desire it, once the fund is de-listed.”
The board of Ellerston has considered ways to narrow the gap between the price of the fund’s units and its NAV for some time, but has failed to find an alternative. It will call a meeting of unit holders in September to examine de-listing the fund.
“We are confident that the proposal provides a value enhancing solution for our unit holders. It balances the interests of unit holders who wish to redeem from the fund in the short term, while preserving the integrity of the underlying investment strategy for unit holders who have invested for the long term,” Poswell said.
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