Neuberger Berman has announced its intention to wind down the NB Global Monthly Income Fund due to declining net asset value (NAV).
The fund’s board approved a revised investment policy in 2020 that introduced a semi-annual cash exit facility and outlined that if the fund’s NAV fell below £150m a wind-down would be proposed.
As of 17 November, NAV stood at £178.6m, with the board expecting investors withdrawals next month to take the fund below the minimum threshold.
“That probable outcome, combined with the company’s persistent share price discount to NAV per share and recent feedback from shareholders, has led the Board to believe that it is in the best interests of the company and its shareholders as a whole that the company be placed into a managed wind-down,” the board said in an announcement to the London Stock Exchange.
The latest factsheet, published in June, put the discount at 6.35%.
The company will publish the full details of the proposal by the end of the year, before seeking shareholder approval in January 2023.
Under the proposals, the board said it expects the firm will make capital distributions to shareholders during the wind-down period “as and when sufficient cash is realised”. The most illiquid assets could to take up to 24 months to be sold.