In its interim accounts, covering the six-month period ended 30 June 2024, Menhaden Resource Efficiency reported an NAV per share total return of 7.2%. The share price over the same period rose from 100.8p per share to 102.5p, giving a share price total return of 2.6%. The trust uses a benchmark of RPI +3%. The statement noted that the trust’s share price performance remains below its benchmark over the last three years and since inception.

A large part of the problem is the trust’s very wide discount, which at 30 June 2024 stood at 40.1%.

The board is examining its options. It said:

“The company was established with an unlimited life, however, the company’s Articles of Association provide that a continuation resolution be put to shareholders as an ordinary resolution at the annual general meeting of the Company every five years, with the next continuation vote due to be put to shareholders at the AGM to be held in July 2025.

The board is conscious of the challenges facing the listed investment company sector, many of which are also faced by the company at this time. Notwithstanding its good net asset value performance, at its current size the company’s secondary market liquidity is relatively low and it has been unable to attract attention and demand from investors, which has led to the company’s shares trading at a material discount to the company’s net asset value per share.

In this context the board is proposing to undertake, together with its advisers, a formal review of the options available to it in order to address the issues facing the company. The board will update shareholders once it has an outcome from its review ahead of the forthcoming AGM.”

MHN : Menhaden reviewing options ahead of continuation vote