CEF Directors Seek Opportunities in the Downturn

DIRECTOR MOVES August 8-12: Director dealings suggest the recent downturn may have created investment opportunities in the CEF space

Szymon Idzikowski 15 August, 2011 | 1:09PM
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We note with interest the number of CEF directors who have buying shares over the past week, amid the volatility in the markets. Although the average discount on the Morningstar Investment Trust All ex VCT Index widened a little over the week, by around 50 basis points, to 11.7%, opportunities arose at an individual fund level and in particular those with some exposure to European countries, as these were punished particularly hard.The generalist funds also saw some of the non-executive directors picking up shares as they sought to take advantage of the opportunities presented.

Director Moves
Aisi Realty Public (AISI): The international direct property company has announced the appointment of Lambros Anagnostopoulos as CEO of the company. Antonios Kaffas, Ian Domaille and Robert Sinclair have been also appointed as non-executive directors. Both Domaille and Sinclair sit on boards of other listed companies. Conversely, Roland Philippe de Hauke Peeters has resigned after only a month as a non-executive director. Due to these changes, the board numbers two executive directors and six non-executive ones, with an average tenure of less than two years.

Edinburgh Investment (EDIN): Max Ward has been appointed as a non-executive director of the UK Growth and Income fund. His appointment has increased the number of board members to seven.

Henderson Smaller Companies (HSL): We’re pleased to see Jamie Cayzer-Colvin buying his first tranche of shares in the company since his appointment to the board in May 2011.

India Capital Growth (IGC): Peter Niven has replaced Robin Nicholson as a non-executive director of the company. Niven currently sits on the board of four other listed companies.

JPMorgan Brazil (JPB): Mark Bridgeman has bought his first tranche of shares in the company since his appointment as a non-executive director in April 2010.

Director Buying
Aberdeen New Dawn (ABD)- John Lorimer
Alliance Trust (ATST)- Katherine Garrett-Cox& Robert Burgess
Bankers (BNKR)- Richard Killingbeck
BlackRock Commodities Income (BRCI)- Humphrey van der Klugt
BlackRock Latin American (BRLA)- Laurence Whitehead
British Empire Securities (BTEM)- Andrew Robson
Dunedin Income Growth (DIG)- P H Wolton
Electra Private Equity (ELTA)- Lucinda Webber
F&C Global Smaller Companies (FCS)- Anthony Townsend
F&C Investment Trust (FRCL)- David Clementi, Roger Bone, Jeremy John Tigue& Jeffrey Hewitt
F&C US Smaller Companies (FSC)- Malcolm Peter S Barton
Fidelity European Values (FEV)- James Robinson, Humphrey van der Klugt
Henderson Far East Income (HFEL)- John Russell
Henderson Smaller Companies (HSL)- Jamie Cayzer-Colvin
JPMorgan Brazil (JPB)- Mark Bridgeman, Victor Bulmer-Thomas
JPMorgan Global Emerg Mkts Inc (JEMI)- Andrew Hutton
Primary Health Properties (PHP)- William Hemmings, David Sanger, Harry Abraham Hyman
Scottish Investment Trust (SCIN)- John Kennedy
Standard Life Property Income (SLI)- Richard Arthur Barfield, Paul Orchard-Lisle
SVG Capital (SVI)- Lynn Fordham
Temple Bar (TMPL)- John Reeve
Troy Income & Growth (TIGT)- David Warnock, Fancis Brooke, Alistair J Struthers
UK Commercial Property (UKCM)- Andrew Wilson
Witan (WTAN)- Andrew Bell

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Szymon Idzikowski

Szymon Idzikowski  is a closed-end fund analyst with Morningstar.

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