Latest

Aberdeen Frontier Markets: Company Leaves AIM as Members Approve Liquidation

Aberdeen Frontier Markets Investment Company (AIM: AFMC) has confirmed that its shareholders have voted in favour of delisting the company’s shares from trading on AIM, as well as the appointment of Joint Liquidators.

The board announced that the resolutions to wind up the Company and places the Company into voluntary liquidation were voted on and approved by shareholders at the Extraordinary General Meeting. The shares were cancelled from trading on FTSE AIM All-Share Index with effect from Wednesday 19th August at 7:30am. Results can be found in the below table:

Resolution

Votes For*

%

Votes Against

%

Votes Total

Votes Withheld

1. That the Directors be authorised to cancel the admission of the Company’s shares to trading on AIM

56,292,506

97.87

1,223,681

2.13

57,516,187

7,370

2. That the Company be wound-up voluntarily

56,293,346

97.88

1,216,946

2.12

57,510,292

13,266

3. That the joint liquidators be authorised to divide any part of the Company’s assets in specie as they think fit

56,288,887

97.92

1,197,265

2.08

57,486,152

37,405

4. That the joint liquidators be given discretion to pay any residual sum to a charitable cause if uneconomic to distribute

56,297,175

97.92

1,198,104

2.08

57,495,279

28,278

5. That the joint liquidators are appointed

56,303,899

97.92

1,197,265

2.08

57,501,164

22,393

The investment trust was placed into liquidation on Tuesday 18th August with Jamie Toynton and Ben Rhodes of Grant Thornton Limited being appointed as Joint Liquidators. The Joint Liquidators will seek to distribute the cash proceeds from winding-up the portfolio (less the costs of the proposals and any other specified costs) to the shareholders who appear on the register as at the record date of Monday 17th August 2020.

The trust closed down in line with its discount control policy introduced by the Board in October 2018, which stated that if the trust underperforms its benchmark between 1st July 2018 and 30th June 2020 then it will offer its shareholders the opportunity to exit the trust at the prevailing net asset value (NAV) less any applicable direct costs (including realisation costs of the underlying investments).

The net asset value (NAV) per share as at close of business on Monday 17th August 2020 (including income) was $0.5593 (£0.4255). For comparison, the NAV per share for year ended 30th June 2019 was $0.676 (£0.5325), a 17% decline. The decision to cease activity on the market is due to underperformance against the MSCI Frontier Markets Index benchmark over a two-year period, the current size of the investment trust (around £30m AUM) and the operational costs of running it.

The liquidation of the Aberdeen Frontier Markets investment trust means that there will only be three global Frontier Markets investment trusts that investors can choose from: Blackrock Frontiers (BRFI), Jupiter Emerging & Frontier Income Trust (JEFI) and Mobius Investment Trust (MMIT). A full list of Frontier Market Investment Trusts can be found here.

About James Eugene (150 Articles)
Interested in many (maybe too many) things. Football, Politics and Emerging & Frontier Markets, to name a few. Twitter: @James_Eugene

1 Trackback / Pingback

  1. Frontier Markets: Articles of the Week (17th Aug – 23rd Aug) – Frontier Market News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: