Mark Baring, fund manager of Tribune Trust is looking to invest the proceeds of last month's share r...
Mark Baring, fund manager of Tribune Trust is looking to invest the proceeds of last month's share repurchase at the trust's largest unquoted holding, Tennants Consolidated, into other companies in the unquoted sector.
At present, around £10m, some 5%, of Tribune's total capital is invested in unquoted companies and this figure is expected to increase.
Baring said: "We are considering using the money, which comes to about £2m, raised from the Tennants repurchase for further investment in the unquoted sector."
Returns from unquoted companies recently have been very good, especially from venture capital or private equity investments, he said.
"We will, however, continue to focus the majority of our portfolio in the type of blue chip companies we already hold."
The Tennants share repurchase was oversubscribed so shareholders will only be able to sell about half of the shares they tendered to the company.
Baring said: "The financial effects of the transaction are positive for our retained holding and underpin the current valuation in our books."
The trust as of 21 September was trading at a discount to NAV of 9.8%. Tribune is ranked first out of 14 trusts for the three years to 13 September on mid-to-mid returns of 75.5%.
Among the trust's top 10 holdings are HSBC at 2.6%, BP Amoco at 2.5%, Baring European Growth with a 2.4% weighting, Glaxo Wellcome at 1.8% and Vodafone at 2.5%.
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