Pereira moves to close India Equities Fund
Listed investment company (LIC) India Equities Fund has announced a proposed return of capital to its investors followed by a subsequent wind down of the company.
The move was announced to the Australian Securities Exchange today, with the India Equities Fund Board noting the failings of the LIC structure, "particularly the steep and persistent discount between share price and net tangible assets", which it said had prevented the company from delivering the real value of its underlying investments within a reasonable timeframe.
Despite the move, the company's founder and chief executive, John Pereira, said he remained bullish about growth prospects of investing in India.
"While the board continues to strongly believe in the India economic growth story, the LIC structure has been disappointing," he said.
Pereira said for this reason the board decided to put to shareholders a proposal to return approximately 90 per cent of the company's capital followed by a subsequent wind-down.
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