The Global Value Fund (ASX: GVF) is a listed investment company that provides shareholders with the opportunity to invest globally through a portfolio of securities purchased at a discount to their underlying asset value. By capturing this discount for its shareholders, the Company aims to provide an alternative source of market outperformance compared to more common stock selection strategies.
The portfolio management team is based in London and has considerable experience in finding international assets trading at a discount to their intrinsic worth, and in identifying or creating catalysts that will be used to unlock this value.
The Global Value Fund (ASX: GVF) has traded at a premium to post-tax NTA since September 2016. The current offering provides investors an opportunity to invest into the Company in line with its asset backing and at a 2.7% discount to the 30 day Volume Weighted Average Price (VWAP) of the Company before the offering was announced.
GVF has traded at a premium to its post-tax NTA since Oct 2016. The average premium over that time to the point of the Rights Offering announcement (27 Feb) was 4.1%.
While no one can make any predictions regarding the price at which GVF shares may trade into the future, this is the first time in almost 18 months that shareholders are able to purchase shares at the NTA.
The Company aims to generated equity market like returns, but with significantly less risk than a comparable portfolio of international shares. The recent market correction during February demonstrated GVF’s value within client portfolios. On the 7th of February the Company announced that its investment portfolio had fallen by 0.2% MTD, compared to a fall in global equity markets of 3.5% in A$ terms. Since month end, GVF has further announced that its portfolio increased in value by 0.8% over the month, while global equity markets fell 1% in A$ terms.
CONSISTENT INCOME & CUM DIVIDEND
Since listing at $1/shr, the Board has declared total grossed up dividends of 22.5 cents. The Board recently declared an FY2018 interim dividend of 3.15 cents per share, 50% franked. All New Shares issued under the entitlement issue and public offer will receive this dividend.
SIGNIFICANT LIQUIDITY EVENT
Relative to the daily traded volume in GVF shares, the Entitlement Offer, Shortfall Offer and Public Offer the Company has announced provides existing shareholders and potential new investors with an opportunity to acquire a significant holding in the Company.
The Company was rated by Lonsec last year, please see home page for more details.