Listed Managed Investments: PGG the Latest Victim of Price Dislocation

• Partners Group Global Income Fund (ASX: PGG) Looking to Delist: On 2 May, PGG announced a proposal to delist PGG from the ASX and operate as an unlisted fund with monthly redemptions and subscriptions based on NAV. The proposal comes as the trust continues to trade at a significant discount to NAV. For investors who wish to redeem their investment after the trust is delisted, liquidity will be generated using cash balances or selling assets to meet redemption requests. It is proposed that redemptions would be subject to a limit of 5% of NAV per month and for an interim transition period of 12-months from delisting, an exit fee would be applied initially starting at 7.5% for the first four months, 5% for the following four months and 2.5% for the final four months.
• BKI Raises $72.98m through SPP: BKI Investment Company Limited (ASX: BKI) raised $72.98 million under its Share Purchase Plan (SPP), which closed on 28 April 2023. Each BKI Director applied for the maximum amount of SPP shares. Shares were issued at $1.66 per share, which represented a 3.0% discount to the VWAP of BKI shares traded on the ASX over the 5 trading days up to and including 28 April 2023 and a 7.7% discount to the pre-tax NTA as at 28 April 2023, the date the SPP pricing was confirmed. The Company issued 43.97 million new shares through the SPP. The capital raised will be invested in line with the Company’s investment strategy with the Manager of the view that the market is offering an attractive opportunity for long-term investors.
• CAM to Pay Record Quarterly Dividend: Clime Capital Limited (ASX: CAM) announced it would be paying a dividend of 1.34 cents per share for the June quarter. This is the largest quarterly dividend paid by the Company and is an increase of 4.7% on the June quarterly dividend paid in 2022. The total dividends paid for the FY23 period equals 5.24 cents per share, up from the ordinary dividend of 5.11 cents per share paid for the FY22 period. The Company stated that subject to market conditions the Board intends to steadily and incrementally grow the dividend per share paid to shareholders consistent with dividend/income receipts on the CAM portfolio.
• New RE Proposed for CD1, CD2 and CD3: In March 2023, the Responsible Entity (RE) of CD1, CD2 and CD3, E&P Investments Limited (E&P), announced it has commenced a process to seek proposals for an external third party RE to replace E&P. In May, E&P announced it will be proposing to unitholders to appoint K2 Asset management Ltd (K2) as the RE for the funds. E&P commented that K2 was selected based on a range of factors, including K2’s experience and expertise in the provision of RE and trustee services and their competitive fee proposal.
• CD2 LP Receives a US$7m Distribution from Dominion Voting Systems Settlement: CD Private Equity Fund II (ASX: CD2) announced that the LP received a payment of ~$7 million relating to the Dominion Voting Systems settlement with Fox Corp. The distribution is net of legal costs, taxes, fees and management share option dilution. CD2’s proportionate share of the LP is 87.3%, resulting in CD2’s share of the distribution being US$6.1 million. CD2 will provide further updates regarding the timing of any distributions to unitholders once the fund has received the distribution from the LP.
• EAI Shareholders Approve Restructure Proposal: Ellerston Asian Investments Limited (ASX: EAI) shareholders approved the restructure proposal during the month with all motions carried. EAI shareholders will receive a special dividend comprised of a non-cash component being units in the Ellerston Asia Growth Fund (Hedged Fund) (ASX: EAFZ) as well as any associated franking credits. EAI shares will be converted into EAFZ units at a ratio of 0.134546 units of EAFZ for 1 EAI share and the Company will pay a dividend amount of 8.0145 cents per share with franking credits of 2.6715 cents per share, scheduled to be paid on 5 June 2023. The Company was suspended from trading on the ASX on 25 May with EAFZ scheduled to commence trading on 8 June.
• WHF Declare Final Dividend of 10.25 cents per share: Whitefield Industrials Limited (ASX: WHF) released their full year results for the year ended 31 March 2023 in May. Investment revenue for the year was up 9.8% to $21.8 million and NPAT was up 7.3% on the pcp to $18.0 million. The Company declared a final dividend of 10.25 cents per share, in line with the previous final dividend, taking the full year dividend to 20.5 cents per share, fully franked. WHF has provided a steadily growing dividend stream to investors throughout its long history.
• WLE Raises $230m through Placement & SPP: WAM Leaders Limited (ASX: WLE) raised a total $230 million through the Placement and Share Purchase plan (SPP) with the SPP closing on 8 May 2023. After raising $131 million in April through the placement to wholesale and sophisticated investors in April at $1.48 per share, a further ~$100 million was raised through the SPP with new shares issued at $1.4580 per share, a 2.5% discount to the 5-day VWAP at the issue date. Shareholders who participated in the placement and SPP are eligible for the interim dividend scheduled to be paid on 31 May 2023. A total of 156.5 million new shares were issued under the Placement and SPP.

For all the details and more news as well as IIR research updates and key data points as at 30 April 2023, see the attached report.