Update: Electra investment trust to be wound up

Outcome of third stage of strategic review

clock • 6 min read

The board of the Electra investment trust has decided to wind up the company following the third stage of its strategic review.

Having agreed the sale of its larger non-controlled assets, Photobox and Knight Square, to funds advised by Lexington Partners, the fund will only hold TGI Fridays, Hotter Shoes and a few smaller positions. The board said it would be "inappropriate" to continue to pursue value creation due to the concentrated nature of the portfolio and the structural inefficiency in reinvesting in a listed private equity vehicle with a significant market discount to NAV. A managed wind-down of the portfolio will begin to return cash to shareholders. Until it is wound up, the company will continue to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Although the sector closed the year in positive territory, investment trust performance was 'well behind' US and global equity market indices.

Investment trusts close 2023 with 4.6% performance boost

Numis research

Cristian Angeloni
clock 03 January 2024 • 3 min read
Charlotte Cuthbertson (pictured), fund manager at Asset Value Investors and co-manager of MIGO Opportunities trust

AVI's Charlotte Cuthbertson: The resilient reinvention of investment trusts

Autumn of 2023 'golden period' for ITs

Charlotte Cuthbertson
clock 21 December 2023 • 5 min read
The total debt for the company stood at $674m as of 31 September, which represented 32.0% of operative NAV.

Hipgnosis narrowly avoids share suspension with publication of interim results

Continued tension with investment adviser

Eve Maddock-Jones
clock 21 December 2023 • 3 min read
Trustpilot