Liquidating a fund
In that case we might see the discount drop back to -10% levels. London already holds 33.1% of total shares, and institutional owners together own 61.4% of the fund.
The chart below shows the top 5 institutional owners of TTF, with their overall holding % indicated in the pie chart.
I tried searching for any news from this period but I could not find any.
My inner skeptic thinks that something fishy is going on, but I'd be happy to proven wrong.
About half a year ago, The City of London Investment Group ("London") "went activist" on twelve international equity CEFs (13D filings linked). and will invest in emerging market equity securities in order to seek total return, consisting of a combination of capital appreciation and income.
We discussed the events at the time in a series of articles (I, II, III). The acquiring fund may also use leverage to achieve its objective.
The consolidation of these closed-end funds will create a dividend generating emerging market closed-end fund that is larger in size than any of the Acquired Funds, which may help to provide improved liquidity of shares, a lower overall expense ratio and improved market awareness including research coverage.For KEF, the shareholder meeting took place 4 months after management proposed liquidation, and the actual liquidation date was just under 2 months after that.For TTF, the timeline thus far is as follows: The meeting for TTF is about two months later, which is sooner than after KEF announced its proposal.Note the last sentence: I really should have followed my own advice!Interestingly, TTF shareholders benefited not only from discount contraction, but also meaningful alpha generated by the CEF as can be seen from comparison of the NAV returns of TTF versus the benchmark ETF, THD.
Search for liquidating a fund:
Part of this was due to the CEFs' outperformance, which I don't think will continue, and part of this was due to the fact that many of the discounts have now contracted to about or narrower than -10%, which is the level that London has consistently referred to as being the level at which action should be pursued.