Pekin Singer Strauss Asset Management Supports Sprott’s Exchange Offer
10 June 2015 - 8:01AM
Business Wire
Offer Would Eliminate Current Net Asset Value
Discount on Central GoldTrust Units
Pekin Singer Strauss Asset Management, investment advisor to
Appleseed Fund and high-net-worth individuals, is supporting Sprott
Asset Management’s offer to acquire all outstanding units of
Central GoldTrust (GTU).
“As Central GoldTrust’s largest unitholder, we’re disappointed
that the GTU trustees have so quickly dismissed the Sprott offer,”
said Adam Strauss, Pekin Singer Strauss co-CEO. “Not only is
Sprott’s exchange offer superior to the status quo, it already has
significantly reduced Central GoldTrust’s net asset value discount
as others in the market have recognized its value. We expect the
discount will be reduced further when GTU’s physical gold assets
are exchanged into a product with a superior management team and
structure, including a physical redemption feature.”
Conversely, if the Sprott offer is rejected, Strauss anticipates
that the discount to NAV at which GTU trades could revert to the -8
percent level that existed before the Sprott offer was
announced.
“As fiduciaries controlling substantial investments in GTU, we
believe the Sprott offer will deliver significantly enhanced value
to our investors. We’re disappointed that the GTU trustees have not
reached the same conclusion. As such, we will tender the units of
GTU that we control to the Sprott Exchange Offer,” he said.
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
in exchange for units of Central GoldTrust.
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. 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)
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150609006740/en/
CLM CommunicationsCindy Martin,
847-864-9540cindy@clmcomm.com
(AMEX:GTU)
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