The Woodford Legacy masks the opportunity
Tender offer announced of up to £31m at about 21p.
https://www.londonstockexchange.com/news-article/INOV/circ-re-tender-offer/17093496
Just listened to the 2024 Annual Results presentation at https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/schroders-capital-global-innovation-trust/ and it seems they chose to wind-down the Trust because buy backs failed to reduce the stubborn discount. Not quite sure what they were expecting, given the vast majority of private equity trusts are on 35% plus discounts. Added to their woes I suppose is that the market cap of £102m makes it sub scale.
The question is I suppose how long will it take to wind it down and what's the lost opportunity cost of waiting?
Hi Paul, the wind down could be quite extended - perhaps 5-6 years. However realisations of 10%-30% a year appear reasonable to expect too.
OB
Here there is mention of an initial capital return of £30m, expected by 30 June 2025.
https://quoteddata.com/2025/03/schroders-capital-global-innovation-begins-wind-down-as-nav-falls-21-2/
I guess we will see a very substantial fall after that distribution.
Might be the point to buy?
I already hold a sliver of these.
Think I will tender and reinvest proceeds post tender.
Tender offer announced of up to £31m at about 21p.
https://www.londonstockexchange.com/news-article/INOV/circ-re-tender-offer/17093496
Just listened to the 2024 Annual Results presentation at https://www.schroders.com/en-gb/uk/individual/funds-and-strategies/investment-trusts/schroders-capital-global-innovation-trust/ and it seems they chose to wind-down the Trust because buy backs failed to reduce the stubborn discount. Not quite sure what they were expecting, given the vast majority of private equity trusts are on 35% plus discounts. Added to their woes I suppose is that the market cap of £102m makes it sub scale.
The question is I suppose how long will it take to wind it down and what's the lost opportunity cost of waiting?
Hi Paul, the wind down could be quite extended - perhaps 5-6 years. However realisations of 10%-30% a year appear reasonable to expect too.
OB
Here there is mention of an initial capital return of £30m, expected by 30 June 2025.
https://quoteddata.com/2025/03/schroders-capital-global-innovation-begins-wind-down-as-nav-falls-21-2/
I guess we will see a very substantial fall after that distribution.
Might be the point to buy?
I already hold a sliver of these.
Think I will tender and reinvest proceeds post tender.