Strategic Equity Capital has substantial support for continuation – Strategic Equity Capital has published a circular convening a meeting on 30 March 2021. The meeting is to satisfy the requisition by two shareholders. At the meeting, shareholders will be asked whether they want to support the continuation of the trust. Strategic Equity Capital holds these votes on a regular basis and shareholders only voted on this a few months ago at the AGM in November. A second resolution asks that, in the event that the first resolution is not passed, to put forward proposals to shareholders within eight weeks to enable those shareholders who want to realise their investment in the company for cash at or close to net asset value, or to exchange their shares for shares in another investment vehicle, an opportunity to do so.
The board unanimously recommends that shareholders vote FOR Resolution 1 (continuation of the Company) and AGAINST Resolution 2 (reconstruction proposals).
As the notice points out, the fund management team and the trust’s portfolio have only just been subject to a detailed strategy review by the investment manager (which was appointed in May 2020). Changes to the fund management team were announced in September 2020 with Ken Wotton appointed as lead manager of the portfolio alongside Adam Khanbhai.
The board has consulted with certain key shareholders who together hold shares representing approximately 40.3% of the issued share capital as at 2 March 2021. These shareholders have expressed their support for the company’s continuance and the investment manager’s strategy, and have indicated that they will vote for Resolution 1 and against Resolution 2 at the meeting.
[You may remember that the requisitionists are the chairman of the management company that was sacked when Gresham was appointed and the chairman of the competing trust managed by another former manager of Strategic Equity Capital. Given that Gresham’s appointment was well-received and it has barely had any time to deliver improved performance, we would expect shareholders to give the Gresham team the chance to prove themselves. If you are investor in the trust, you should vote your shares. Details of how to do so are given here.]
SEC : Strategic Equity Capital has substantial support for continuation