AVI and three other shareholders in Third Point Investors Limited (TPIL) collectively owning over 17 per cent. of its ordinary shares and over 10 per cent. of the voting rights have today requisitioned the TPIL Board to convene an extraordinary general meeting of TPIL to consider and if thought fit pass a resolution to change its investment policy. The resolution is aimed at fixing TPIL’s persistent and entrenched trading discount to NAV.
The proposed new investment policy would see TPIL use its existing contractual authority (at the discretion of the directors of the company) to redeem shares in the Master Fund and use the proceeds to fund redemptions of Ordinary Shares at NAV less costs on a quarterly basis. We recommend that simultaneously, Shareholders (whether existing Shareholders or not) should be allowed to submit subscription requests at the same price at which redemptions are made.
The proposed new investment policy would place no obligation on any Shareholder to redeem any of its investment in TPIL – simply an ability to do so, at a price close to NAV.Nor should it have any material impact on NAV returns for those Shareholders who wish to remain invested. Indeed, these are liquidity terms that Third Point has had no problem honouring for other investors since the firm’s inception.
Please read the letter and Requisition Notice for more details.
* As at 31 August 2021
** Source: Morningstar, performance period 30 June 1985 to 31 August 2021, TR net of fees, GBP
*** As at 30 September 2020, includes: management fee 0.70%, marketing and administration costs
AVI Global Trust p.l.c is referred to as ‘AVI Global’ throughout the website. AVI Global’s investment managers, Asset Value Investors are referred to as ‘AVI’