Windlesham Don
16 Feb 2017
Re: Wind up vote So no whiff of a rise this week, either pre or post xdiv. Only a month to go until the AGM and the continuation vote.I have a decent holding in this trust and I would like to vote in favour of winding up. I feel that even if the vote still passes then a protest will have been registered. However, all of my shares are held in ISA and SIPP accounts with BS and HL.Anyone know how I go about registering an intention to vote in these circumstances?
alandwd
12 Feb 2017
Re: Wind up vote My trigger for selling is the discount. At the moment, it's still 16%. Not quite the 20-25% we've seen in recent years but still high.Henderson definitely does an above average job managing this one. I believe too that the continuation vote will be passed, but the excellent perfomance figures since July will help attract new investors and in turn I expect the discount to narrow once more.
nncalc
11 Feb 2017
Re: Wind up vote I agree that the big boys vote for continuation (if they vote). In the case of HOT the big boys appear to be thin on the ground. Not surprisingly, with a company with a market cap of under £80m and a horrible buy/sell spread, they leave it for the little people. I believe there are three significant holders. One is Prudential with a seemingly permanent 3.8% interest. Around £3m and a profit of £500,000 if the wind up occures. One is Investec which keeps putting in notifications that the holding has moved through 5% and back. Maybe it helps out with market making. The interestinbg one is Henderson notifying an increase from "below 5%" to 7.5% on 4 November. The directors (in favour of continuation!) account for around 0.25%.To me, the decision is with the real holders. The AGM is 16th March. I've got some shares bought at 806 in June, 820 in September and 828 in December; would like to sell some for £10 before the AGM. I think it would be an embarrassment to Henderson if people power voted against continuation. Will be watching for notification of holdings changes for a few weeks.
Windlesham Don
09 Feb 2017
Re: Wind up vote Many thanks for your response. I have been in touch with another investor, who is also more knowledgeable than me in these matters and he informs me that many ITs have this 'continuation vote' built in. However, I am also informed that the large shareholders will always back the board and vote for continuation regardless of the size of the discount - I note that in the recent results all directors pledged to vote in favour of continuation.Much as I would love to see the discount reduce to zero by April, I will be staggered (and significantly in profit) if it does. Personally, if the discount narrows to less than 10% by the AGM I will be happy. I added to my holding with the discount just under 20%, but as you rightly say the spread was horrendous - probably one of the reasons this IT isn't traded very much. I am now sitting at break even on a 'buy to sell' basis, so the mid-price has gone up by over 30p!I also look regularly at large discount ITs. I don't hold Dunedin, but a friend swears by Throgmorton and I hold HSL and have held BRSC in the past - all of these sit at significant discounts and should close eventually, although it may be post-Brexit before they truly come back into favour.Finally, I like James Henderson as a manager and I do feel that he picks good companies. I also hold LWI which is another of his funds and which has also started to pick up recently.Best of luck,
nncalc
09 Feb 2017
Re: Wind up vote for Windlesham DonSorry but I've been on other things. I have watched this one for years, as shown on this board. The manager does a good job - I kid myself he has a particular affection for this tiny trust! The punters seem to follow recent share price performance so buy AFTER its gone up and sell AFTER it had fallen. I think it is too small to interest the big boys - there is usually a horrendous spread between buy and sell price. My source is the AIC site and HOT is in UK All Compoanies. The discount has moved between 23.5% and 10.5% over the past year and is now 16%. Also, on AIC, you find the annual accounts where it tells you about "Continuation Vote" in the Directors Report. Passed (i.e carry on business) in 2014; next due in 2017. The AGM is usually end April. If the vote is lost (I call it a wind up vote) the directors are obliged to make arrangements to bring the company to an end. I would expect said directors to come to an arrangement with another trust in the stable to come to a reconstruction arrangement and the holders effectively cash in the discount. As a long term watcher, I expect the discount to largely disappear before April Fools Day and the Continuation Vote will be won by the happy shareholders. If the discount is over 10% I will organise myself to vote for the wind up. I expoect to be counting my profits and waiting for mega discounts to reappear as they have always done in the past. Hope this makes sense. I spend happy times looking for these small trusts with decent performance and big discounts. They come right in the end. If you want my latest treasure take a look at DNDL on 18% discount. UK Smaller Companies sector and pedestrian performance up to a year or so ago. Now in the top quartile of performance and one of the biggest discounts in the sector. Please, do your own research.
alandwd
27 Jan 2017
Re: Wind up vote The continuation vote is a floor on the price. No arbitrageur is going to let the opportunity to buy into a trust at 20% discount slip by, when they could buy in bulk and influence the outcome. I think that's exactly what's happening right now.Look what Elliott is enacting at Alliance.
Windlesham Don
27 Jan 2017
Re: Wind up vote Thanks for the info nimbo1. Nothing there specifically stating that the trust will be dissolved and shareholders will get the distributed funds (presumably NAV minus dealing costs) if the vote fails, though, just that passing the vote means it will continue as an Investment Trust for another 3 years. I'll keep digging...
nimbo1
27 Jan 2017
Re: Wind up vote This is from Trustnet - so 2008, 2011, 2014, 2017 A continuation vote will be held every three years. The Directors intend to hold Shares that have been repurchased in the market in Treasury if they consider this to be in the best interests of the Company. The authority to allot up to a maximum of 5% of the issued capital will apply to the aggregate of sales of Shares held in Treasury and new issues of Shares. At the AGM held on 19-Mar-08 the Company's authority to make market purchases up to 14.99 % of the issued capital was renewed. The resolution to continue as an Investment Trust was passed and therefore, barring unforeseen circumstances, this will be considered in three years time.
Windlesham Don
27 Jan 2017
Re: Wind up vote NNCALC - As a shareholder in this trust I have been trying to find any information regarding this wind up vote. I can find nothing in any of the HOT literature. Could you please point me at a document where I can find the details and timescales for this vote? Thanks in advance.
alandwd
26 Jan 2017
Re: Wind up vote Yes, the discount is amazing considering both the wind up vote and the good performance figures. I've been switching my funds from this one into trusts that have seen a near-disappearance of the NAV in recent months - Alliance and now Fidelity Asian Values. Aside from a general market fall risk, there really are no other negatives.
nncalc
26 Jan 2017
Re: Wind up vote Looks to me like the usual pre-vote rise. Latest NAV is 1113p (the manager does a brilliant job) and the discount 200p a share. I will settle for a narrowing by 150p in the next couple of months. Not a greedy man!!
alandwd
17 Dec 2016
Re: Wind up vote I'd certainly vote for it. When you consider this trust was trading at par a couple of years ago, you'll either will see a narrowing of the discount or a wind up. The only downside is a general larger market fall, but the potential benefits far outweigh the risks.
nncalc
16 Dec 2016
Wind up vote Strictly, a "continuation vote" , it comes around every three years and is an opportunity for shareholders to vote to receive asset value. The next one is spring 2017, at the AGM. With an asset value over 1000p and a discount over 20% it must be right for the vote to be for wind up (against continuation). I hope Henderson will arrange for another trust (Lowland used to have a holding in HOT) to buy up the shares and make an offer; traditionally, the discount narrows in the run up to the triennial vote. I cannot see a downside at present price. Manager (who also manages Lowland and Law Debenture) continues to perform at NAV level. The trust is in the top quartile of UK All Companies per the AIC figures.
fecm
10 Aug 2016
Good progress Nice to see a steady rise over the last few weeks. Long may it continue and hold up.
alandwd
31 Jul 2016
Re: Back In I'd say the fall was overdone. Also, devalued currency has to help on the upside. Certainly better than holding paper pounds.
