Momentum Multi-Asset Value Trust Proposed scheme, DCM suspension and dividend (5637A)
25 Maio 2023 - 3:00AM
UK Regulatory
TIDMSIGT
RNS Number : 5637A
Momentum Multi-Asset Value Trust
25 May 2023
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25 May 2023
Momentum Multi-Asset Value Trust plc ("the Company")
Proposed scheme of reconstruction and roll over into the VT
Momentum Diversified Income Fund, suspension of the Company's
discount control mechanism ("DCM") and announcement of fourth
interim dividend
Proposed scheme of reconstruction
Recent market challenges and share buy backs through the
operation of the DCM have seen the Company reduce in size, to net
assets of around GBP43 million, and its ongoing charges ratio
increase. This has put the long-term viability of the Company in
question and the Board has decided it is in the best interests of
shareholders to liquidate the Company and give shareholders the
option to roll their investment into another investment vehicle or
to receive a cash exit at close to NAV.
The Board intends to put forward proposals to shareholders for
the winding up of the Company by way of a scheme of reconstruction
pursuant to section 110 of the Insolvency Act 1986 (the "Scheme").
Under the proposed terms of the Scheme, shareholders will be
offered the opportunity to roll over their investment into the VT
Momentum Diversified Income Fund ("MDIF"), an open ended fund also
managed by Momentum Global Investment Management Limited ("MGIM"),
or to receive cash in respect of their investment in the Company,
or a combination of both (the "Proposal").
The opportunity to roll over into MDIF will provide shareholders
with the ability to maintain a consistent investment approach. MDIF
has been managed by MGIM and its predecessors for over two decades,
with the same valuation-driven philosophy as the Company. MDIF has
similar objectives to the Company and there is a material overlap
of portfolio holdings. MDIF aims to generate a high level of income
with the prospect of maintaining the real value of capital over the
long term, by investing in a multi-asset portfolio. It is larger
than the Company, with net assets of around GBP144 million, and
benefits from a lower ongoing charges ratio and a higher yield. It
is proposed that a roll over into MDIF will be the default option
of the Scheme.
The Board will update shareholders on the progress of the
Proposal, including the key terms of the Scheme, in due course.
Suspension of the DCM
In the light of the Proposal, and to ensure fair treatment of
all shareholders, the Board has suspended the operation of the DCM
with immediate effect. The Board may decide to restart the DCM in
due course, should this be deemed appropriate in the context of the
Proposal.
Fourth interim dividend
The Board has today declared a fourth interim dividend in
respect of the financial year ended 30 April 2023 of 2.60p per
share, which will be payable on 30 June 2023 to shareholders on the
register on 9 June 2023, with an ex-dividend date of 8 June
2023.
The increase in the fourth interim dividend to 2.60p per share
represents a total increase in dividends for the financial year to
30 April 2023 of 11.1% compared to the previous year (8.00p per
share vs 7.20p per share). The total dividend of 8.00p per share
for the year represents an increase of 25.4% over five years which
compares to inflation of 23.8% over the same period, as measured by
the CPI.
Enquiries:
Juniper Partners Limited, Company Secretary
0131 378 0500
Steve Hunter, Momentum Global Investment Management Limited
0151 906 2481
Sally Walton, SEC Newgate (media enquiries)
020 3757 6872
Legal Entity Identifier: 213800OQTUSRFDIL9L29
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END
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May 25, 2023 02:00 ET (06:00 GMT)
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