Absolute Return Trust in wind down proposal
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The board of the Absolute Return Trust are to put proposals for winding down the closed-end fund of hedge funds to investors.
The investment trust’s board has resolved not to seek continuation after “extensive shareholder consultation”. According to the board, the discount of the trust’s share price had widened in recent years despite attempts to rein it in by share buybaks and capital returns.
In a market statement, the board claimed in discussions with investors the discount level had been identified as a key concern.
“The board has explored a variety of ways to address the discount for the benefit of all shareholders and has concluded that in current market conditions there is insufficient demand for a closed ended company that invests in a multi-manager portfolio of hedge funds to warrant continuation,” the statement adds. (article continues below)
The closed-end fund was downgraded by Bestinvest last year following a period of weak performance.
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