Bennelong has made a bid to take over an ASX-listed fund that it manages, saying it will eliminate the discount and improve liquidity.
The ASX-listed Absolute Equity Performance (AEG) Fund is currently managed by Bennelong Long Short Equity Management, which includes Sam Shepherd as a portfolio manager and Sam Taylor as the head of research.
Bennelong is proposing AEG investors ditch the listed vehicle in lieu of units in the Bennelong Market Neutral Fund, which it manages.
"BLESM indicates the proposal is designed to eliminate the share price discount due to the difference between AEG's net tangible asset position and its current share price, and improving liquidity," AEG said in company filings.
|Sponsored by Insight Investment|
Towards a perfect currency solution
As at May 29, AEG was trading at a 5.2% discount to its NTA.
Since its inception in 2015, the NTA has grown by 7.08% p.a.
The LIC's board is currently weighing the offer.
It includes Marc Fisher, a senior managing director and board member at risk management fintech LumRisk, Raymond Da Silva Rosa, a professor of finance at UWA Business School and Andrew Reeve-Parker, who is a representative, director and responsible manager of NW Advice Pty Ltd, according to AEG's website.
AEG has asked shareholders to take no action for the time being.