The Board of the trust intends to formally recommend to shareholders that they vote against its continuation. Representatives of 60% of the share capital have already confirmed they are willing to do so.
In a statement, Cazenove Capital has said it is “entirely supportive” of both the Board and its shareholders’ decision, adding that despite outperformance against the FTSE All Share index with lower volatility it “has continued to trade at an unacceptable discount”.
“We believe this reflects a combination of investor disillusionment with closed-ended fund-of-hedge-fund structures together with the development of Ucits legislation.”
The Board is currently exploring, with its advisers, the potential to offer shareholders the choice to receive value through a rollover into one of the underlying investments held by the fund. These underlying investments are 61.7% in the offshore Cazenove UK Dynamic Absolute Return Fund and 37.7% in the daily-dealing Ucits Cazenove Absolute UK Dynamic Fund.
It is currently envisaged that a circular to shareholders setting out the notice of the 2012 AGM and including the continuation vote and the winding up proposals will be sent out in June. A full announcement setting out details of the proposals noted above will be made at that time.
