News Column

Marwyn Value Investors Ordinary Share Net Asset Value Rises

May 19, 2014

Samuel Agini

LONDON (Alliance News) - Marwyn Value Investors Ltd Monday said the reported net asset value of its ordinary shares increased by 22% during the three months ended March 31, meaning its has quadrupled since inception, compared with an increase in value of the FTSE All Share Index excluding investment trusts of 20% over the same period.

NAV per ordinary share was 315.38 pence at the end of March. The shares were trading at a 30% discount to NAV at the end of the period. Midday Monday, Marwyn Value Investors shares were quoted at 192.00 pence, down 1.5% on the day.

The reported NAV of the B shares decreased by 3.7% over the period, meaning it has decreased by 52% since inception.

The financial performance of the master fund's underlying portfolio companies related to the company's B ordinary share class has fallen behind their forecast figures, which has impacted on the share prices of these companies and subsequently the NAV of the shares, Marwyn Value Investors said in its 2013 financial report, published last month.

"The board is aware that the NAV and share price of the B ordinary share class have not performed well in recent years. The board, together with the company's advisers, continue to explore ways to improve this performance," Marwyn Value Investors said in its statement Monday.

In January, the company completed its first return of capital pursuant to a new progressive distribution policy for holders of ordinary shares equal to 8 pence per ordinary share, effected through a partial cash redemption of ordinary shares. Accordingly, 2.0 million ordinary shares were redeemed on January 13 and were subsequently cancelled. The aggregate value of the partial cash redemption amounted to GBP5.3 million.

Marwyn Value Investors said it remains confident about the performance of the underlying investment portfolio of the master fund.

"The board further believes that the company is well placed to continue to deliver significant investment returns to ordinary shareholders and that the benefits of the restructuring of the ordinary share class approved on November 19, 2013 should enhance the appeal of the company's ordinary shares over the medium to long term, which should in turn lead to an improvement in the rating and liquidity of the ordinary shares," Marwyn Value Investors said.

The investment objective of Marwyn Value Investors is to maximise total returns on its capital primarily through the capital appreciation of its investments.

The company invests up to 100% of its available capital into Marwyn Value Investors LP through the acquisition of limited partnership interests in the master fund.

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Source: Alliance News