Neuberger Berman has proposed to wind down the $178.5 million Neuberger Berman Global Monthly Income Fund ltd, the New York-headquartered firm revealed in a London Stock Exchange announcement today (21 November).
The trust, which is managed by Neuberger Berman Europe and domiciled in Guernsey, announced in September 2020 that the company would trigger a wind-down should its net asset value (NAV) drop beneath £150 million.
As of 17 November, NAV was at £178.6 million. A cash exit offer, first announced in September 2020, would render it dropping below this threshold, it said.
The company has consistently traded at a discount to NAV per share. The announcement said performance coupled with “recent feedback from shareholders” led to a decision by the board for the company to be placed into a managed wind-down and that the move would be in the “best interests of the company and its shareholders”.
It said that due to its portfolio of both liquid and illiquid assets, it would take "varied time periods" to sell down in an orderly manner to maintain shareholder value.
Given current macroeconomic conditions, the company said it expected the process of realising the most illiquid assets to take up to 24 months and that there was “no guarantee” assets would be realised within a given period.
Year-to-date, the company is trading at a 6.45% discount to NAV.
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