AcenciA Debt Strategies potential for continuation option through to 2017
AcenciA Debt Strategies provided an NAV total return of 3.5% during the first half of 2014. Its share price beat this with a total return of 9% and, reflecting this, the discount to NAV narrowed from 9.3% to 3.9%. AcenciA has a hard wind up at the end of this year and the discount narrowing during H1 may partly reflect this.
AcenciA’s board report that they have held discussions with the investment manager about a continuation option beyond the December 2014 wind up. Proposals are still to be finalised but, in the recent interims, the board detailed that continuation the proposals ‘would include’ a tender offer for shareholders who wish to exit, up to a certain maximum percentage and, assuming this is not exceeded, a proposal to extend the life of the Company to 2017. If either the maximum percentage is exceeded or the necessary resolutions are not passed, a resolution for the winding-up of the Company on 31 December 2014 will be put to shareholders as originally planned.
AcenciA Debt Strategies invests in and actively manage a portfolio of predominantly debt orientated hedge funds. It aims to provide annual returns in excess of 3-month Sterling LIBOR plus 5 per cent over a rolling 3-year period.