Multiple CEFs Look at Raising New Money

CEF TIMES: The past seven days saw a number of CEFs complete share issues and more announce plans to raise capital

Jackie Beard, FCSI, 20 April, 2011 | 10:55AM
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CEF News: April 13-20
GS Dynamic Opportunities saw the continuation vote for the GBP shares (GSDO) pass successfully but it failed for the EUR (GSDE) and USD shares (GSOU). The USD and EUR share classes are both far smaller than the GBP share class. Redemption proposals will be forthcoming within the next two months.

European property company Hansteen Holdings (HSTN) has announced proposals to raise approximately £150 million through a placing and open offer. Shareholder approval will be sought at the AGM on 6 May. The company believes there are sufficient opportunities to purchase property in both Continental Europe and the UK to justify this fund-raising. Since early February the fund has traded at a very slight premium to its NAV, although the actual NAV is only released twice-yearly, the most recent being 31 December 2010.

HarbourVest Senior Loans Europe (HSLE) has issued its prospectus for the planned C share issue in May. The fund is seeking to raise up to an additional £30 million, although shareholder approval for the issue still needs to be given at its EGM in early May.

JPMorgan Emerging Markets Income (JEMI) announced the results of its C share: it raised just under £26.5 million. The fund has traded at a premium to its NAV since launch. The C shares start trading today so it is yet to be seen if this premium will reduce as a result of the increased share capital.

The Neuberger Berman Global Floating Rate Income fund has raised around £507 million, far exceeding its initial target of $200 million. This follows the successful launch of their Distressed Debt fund (NBDD) in June 2010.

Schroders has announced its plans to launch a commodities trust in June, to be run by Schroders New Finance Capital. New Finance Capital was founded in 2002 and David Mooney, the manager of this new trust, joined the firm in 2005. Schroders acquired the firm in 2006.

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