Pekin Singer Strauss Asset Management Supports Polar’s Shareholder Proposals and Welcomes Sprott’s Potential Exchange Offer
28 April 2015 - 1:11AM
Business Wire
Both Solutions Would Eliminate the Current Net
Asset Value Discount
Pekin Singer Strauss Asset Management, investment advisor to
Appleseed Fund (NYSE: APPLX, APPIX) and high-net-worth individuals,
is supportive of shareholder proposals put forth by Polar
Securities and is encouraged about an exchange offer by Sprott
Asset Management to acquire outstanding units of Central GoldTrust
(NYSE: GTU).
Both solutions are superior to the status quo because they
should significantly reduce Central GoldTrust’s current net asset
value discount by implementing a physical redemption feature,
explained Adam Strauss, co-CEO of Pekin Singer Strauss, Central
GoldTrust’s largest unitholder.
Pekin Singer Strauss first purchased Central GoldTrust in 2010
and currently holds more than 1.2 million units through its
separately managed accounts and Appleseed Fund, a go-anywhere value
mutual fund where Central GoldTrust is a top holding.
Sprott Asset Management, an alternative asset manager, announced
April 23 its intention to offer units of Sprott Physical Gold Trust
and Sprott Physical Silver Trust in exchange for units of Central
GoldTrust and Silver Bullion Trust, both of which offer a physical
redemption feature.
“The Polar Securities shareholder proposals are worth supporting
because they would likely eliminate most or all of the current net
asset value discount on Central GoldTrust shares by implementing a
physical redemption feature for Central GoldTrust units. We voted
our shares in favor of Polar’s proxy proposals and in favor of
Polar’s proposed trustees,” said Strauss.
“For similar reasons, an exchange offer by Sprott would also
enhance unitholder value,” he added. “Sprott Physical Gold Trust,
which our investors also own, already offers a physical redemption
feature. Like Polar’s proxy proposals, an exchange offer with
Sprott Physical Gold Trust would similarly eliminate the current
net asset value discount on Central GoldTrust units.”
“We join with Polar Securities in welcoming Sprott’s exchange
offer and hope it will be evaluated by the board of trustee
candidates being nominated by Polar,” said Strauss. “Given Polar’s
large ownership stake in Central GoldTrust, these individuals will
be better positioned to consider Sprott’s offer more
objectively.”
About Pekin Singer Strauss Asset Management
Founded in 1990, Pekin Singer Strauss Asset Management is a
leading investment manager that seeks to generate superior returns
over time by pursuing a disciplined value investing approach which
minimizes investment risk with clients’ capital. The independent,
employee-owned firm is committed to maintaining the highest
standards of ethics and objectivity and to serving as its clients’
trusted advisor. For more information, visit www.pekinsinger.com.
Pekin Singer Strauss Asset Management is registered with the SEC as
an investment adviser.
Past performance is no guarantee of future results. The
investment return and principal value of an investment in the Fund
will fluctuate so that an investor’s shares, when redeemed, may be
worth more or less than their original cost.
Investments in commodities may be affected by overall market
movements, changes in interest rates, and other factors such as
weather, disease, embargoes and international economic and
political developments. Commodities are assets that have tangible
properties, such as oil, metals, and agricultural products. These
instruments may subject the Fund to greater volatility than
investments in traditional securities.
As of 03/31/2015 Appleseed Fund invested 11.3% of its portfolio
into Central GoldTrust (NYSE: GTU).
You should carefully consider the investment objectives,
potential risks, management fees, and charges and expenses of the
Fund before investing. The Fund’s prospectus contains this and
other information about the Fund and should be read carefully
before investing. You may obtain a current copy of the Fund’s
prospectus by calling 1-800-470-1029. Distributed by Unified
Financial Securities, Inc., 2960 North Meridian Street, Suite 300,
Indianapolis, IN 46208. (Member FINRA)
CLM CommunicationsCindy Martin,
847-864-9540cindy@clmcomm.com
(AMEX:GTU)
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