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Open-Ended Property Funds – Our Views

ShareSoc has now submitted our response to the consultation by the FRC on "Illiquid Assets and Open-Ended Investment Funds". This follows on from the problems experienced last year where property funds had to close to redemptions but it can affect other types of funds also such as private equity ones. In summary after listening to a number of our members on this topic, we have chosen to say that although we would not be opposed to the banning of such funds entirely, ...

Expensive Dividends – National Grid and Electra Private Equity

National Grid (NG.) are returning some of the cash received from the sale of their stake in a gas distribution business to shareholders via a large special dividend. And some will be returned via market share buy-backs, the wisdom of which may be questionable. But the real concern for private investors is that dividends are taxed as income even though this is in essence a "return of capital". It is not being paid out of operating profits, but simply from the ...

National Grid Share Consolidation – Who Are They Fooling?

Shareholders in National Grid (NG.) will have received a notice of a General Meeting to approve a share consolidation (at least that's those of you on the register of the company, others in nominee accounts may be surprised later by the change in their holding). This proposal is linked to the return of cash to shareholders following the sale of the company's interest in a gas distribution business. There will be a large "special" dividend as a result - more on the ...

Hornby Requisition Opposed

Investor Alexander Anton previously requisitioned a General Meeting of Hornby (HRN) to have Chairman Roger Canham removed from the board and get himself appointed as a director. Mr Anton has the support of the second largest investor in Hornby in New Pistoia, but the largest investor is Phoenix Asset Management. The long standing Chairman of Hornby, Roger Canham, is also Chairman of Phoenix which Mr Anton suggests is not a good arrangement so far as corporate governance is concerned. Hornby, the ...

Why Companies Don’t Get Struck Off, and Maven VCT5

I have had two listed companies in my last 25 years of investing, that delisted and then became worthless. But the directors refused to put them into liquidation or...