Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Dexion Trading set to return £92 million in liquidation

Dexion Trading set to return £92 million in liquidation

Dexion Trading, a £92 million investment trust, is set to close after a buyback offer was oversubscribed.

The trust’s discount level in the final quarter of 2013 triggered a redemption offer for up to 30% of its shares, which was taken up in full by investors.

The fund’s board concluded that ‘in light of the level of tenders for redemption received but unfulfilled’, it would be ‘in the best interests of shareholders that the company put forward liquidation proposals’.

Dexion confirmed that a letter to shareholders detailing those proposals and convening an extraordinary general meeting to determine the trust's future would be published in due course.

Over the past five years Dexion Trading has returned 27.1%, compared with an average of 73.8% from its AIC sector.

Ewan Lovett-Turner, an analyst at Numis Securities, doubted that the winding up of the trust would prove problematic.

‘The liquidation of many listed funds of hedge funds has been complicated by illiquid portfolios, requiring redemption pools for gated funds or those with long notice periods. In contrast, Dexion Trading’s underlying portfolio is relatively liquid and it is a feeder into Permal Macro Holdings, which offers monthly dealing.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play French fund CEOs: 'Brexit is a lose-lose situation for all of us'

French fund CEOs: 'Brexit is a lose-lose situation for all of us'

'We'll all lose out - but London is an international city, Paris is not.' Leading French asset management CEOs tell us what they think Brexit will mean for the investment business.

Play Henderson Eurotrust's Stevenson: dealing with European cynicism

Henderson Eurotrust's Stevenson: dealing with European cynicism

Tim Stevenson talks about where he finds his opportunities in the current environment in Europe

Play Mark Barnett - part 2: why I'm not buying Lloyds

Mark Barnett - part 2: why I'm not buying Lloyds

In the second part of our exclusive video interview, Barnett explains why he has no intention of buying Lloyds, and where he sees the greatest income opportunities.

Read More
Wealth Manager on Twitter