Dexion Trading Limited 2013 Continuation Resolution (6064B)

TIDMDTL

RNS Number : 6064B

Dexion Trading Limited

04 April 2013

4 April 2013

Dexion Trading Limited

2013 Continuation Resolution

Introduction

The Company is today posting a Circular to Shareholders in connection with the 2013 Continuation Resolution.

Over the 12 month period ended 20 February 2013, the Shares traded, on average, at a discount to estimated NAV of 11.57 per cent.. Accordingly, the Board is required under the Articles to propose the 2013 Continuation Resolution within 4 months of the discount floor provision being triggered.

Notice convening the Meeting of Shareholders to be held at 2.30 p.m. on 3 May 2013 is set out in the Circular. At the Meeting an ordinary class resolution will be proposed that the Shares continue in issue.

Rationale for Continuation

The Board believes that the Company has a number of attractive features that support a vote in favour of the 2013 Continuation Resolution, in particular:

-- the Company continues to be a unique offering for investors in the listed hedge fund sector, providing access to a single hedge fund strategy (namely global macro) through a liquid and diversified fund of funds portfolio;

-- investing in global macro via a diversified portfolio of funds has generated low volatility returns and generally performs well during recessionary periods compared to other investment approaches; strategies within global macro are generally agnostic with respect to market direction and portfolios can be repositioned quickly as they are highly liquid; and global macro does not have the same level of market beta associated with some other hedge fund strategies;

-- the Company's total return of 16.14 per cent. over the period from 30 September 2007 (the Company become a feeder fund of Permal Macro on 1 October 2007) to 28 February 2013 is the highest in the London listed funds of hedge funds peer group (source: Dexion Capital);

-- the Company's broad Shareholder communication and investor relations efforts provide a high degree of transparency for investors; and

-- the Investment Adviser's belief that markets will start trading based on fundamental economic data, which results in a positive environment for global macro.

Portfolio redemptions and portfolio liquidity

The Company may currently realise any or all of its holding of class A GBP shares in Permal Macro by giving not less than 20 days' notice to Permal, such notice to expire on any monthly Redemption Date.

Accordingly, given the expected timing of any Redemption Proposal which may be required to be put forward, the Company currently expects that it would be able to realise all or any part of its investment in Permal Macro within approximately 2 months after the closing of a Redemption Proposal and pay redemption monies to Redeeming Shareholders shortly thereafter. By way of example, if a Redemption Proposal closed for acceptance on 28 June 2013, the Company would expect to be able to distribute redemption monies to Shareholders by reference to a 31 July 2013 NAV Calculation Date by the end of August 2013.

Upon any realisation of class A GBP shares in Permal Macro by the Company to fund a Redemption Proposal where less than nine months' notice of realisation is given, the Company is required, pursuant to its investment advisory agreement with the Investment Adviser and the Investment Manager, to pay to the Investment Adviser an amount equivalent to thirty three per cent. of the management fees that would otherwise have been payable in respect of the class A GBP shares so realised (at a rate of 2 per cent. per annum) if the full nine months' notice had been given. Such additional fees would be borne solely by Redeeming Shareholders.

Further Information

Further details of the indicative nature of any Redemption Proposal to be put forward where the 2013 Continuation Resolution is not passed, together with detailed performance information for the Company, an investment review for 2012 and 2013 to the end of February, and an investment outlook are set out in the Circular.

Expected Timetable

 
  Latest time and date for receipt   2.30 p.m. on 1 May 2013 
   of Forms of Proxy 
  Meeting of the Company             2.30 p.m. on 3 May 2013

Enquiries:

 
  Robin Bowie / Ana Haurie     Tel: +44 (0) 20 7832 0900 
   Dexion Capital plc 
  Carol Kilby                  Tel: +44 (0) 1481 743 940 
   Dexion Capital (Guernsey) 
   Limited 
  Stuart Klein                 Tel: +44 (0) 20 7029 8000 
   Jefferies Hoare Govett

Terms used in this announcement shall, unless the context otherwise requires, bear the meanings given to them in the Circular dated 4 April 2013.

A copy of the Circular will shortly be submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Hemscott.com/nsm.do

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCBXGDSBDGBGXS

Dexion Trading (LSE:DTL)
Historical Stock Chart
From Jun 2024 to Jul 2024