CQS Diversified is holding continuation votes for each class of shares on 4 March 2014. The votes have been triggered by the US dollar shares trading at an average discount of 6.29% over a 12 month period to 4 November 2013 and the Sterling class trading at an average discount of 7.17% over the same period.
The Board, led by Rupert Dorey (pictured), thinks the fund is too small to support a programme of buybacks aimed at reducing the discount. Instead it is hoping that decent investment performance and the marketing efforts of the manager and the Company’s advisers to broaden the shareholder base will resolve the problem and allow it to grow the fund in due course.
In addition, the Board is also minded to start paying quarterly dividends of 1p per Sterling share and 1 cent per US dollar share. It will also arrange for a dividend reinvestment facility which will buy shares in the secondary market.