Prospect Japan : PJF – change of investment policy

Prospect’s manager is keen that their investment remit be expanded, arguing that if they are allowed to take larger positions in companies and engage with them to encourage share buy-backs, asset sales and reconstructions, the fund will benefit.

To that end the Board is proposing that the maximum investment in any one company be set at 25% of the fund (up from 10%). There be no restriction on investing in non-corporate investments or securities not listed or quoted on a recognised stock exchange (but they will not invest in unlisted securities unless a listing or other realisation is expected in a reasonable period of time) and there be no restriction on the percentage of a company’s issued share capital that PJF may own (but it will not take legal or management control of its investments). The Board also proposes that gearing is limited to 20% of NAV, a 10% limit is placed on investing in other closed end investment funds and a 5% limit on unit trusts and that the new benchmark be the MSCI Japan Small Cap (Total Return) Index.

Shareholders get to vote on the idea on 5 March 2014.


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