Gresham House Strategic PLC Conditional novation of IMA (5928T)
21 March 2019 - 9:46PM
UK Regulatory
TIDMGHS
RNS Number : 5928T
Gresham House Strategic PLC
21 March 2019
Gresham House Strategic plc
("GHS" or the "Company")
Conditional novation of Investment Management Agreement with
Gresham House Asset Management
Gresham House plc ("Gresham House", ticker "GHE") has this
morning announced that it has entered into an agreement which
proposes the formation of a 50:50 joint venture with Aberdeen
Standard Investments ("ASI") relating to its Strategic Public
Equity ("SPE") strategy. The formation of the joint venture is
subject to a number of conditions. It is expected that the joint
venture will establish a new fund, grow funds under management that
employ the SPE approach and accelerate the growth of Gresham
House's existing SPE strategy led by Graham Bird and Tony
Dalwood.
As part of the arrangements, GHS has signed a novation agreement
under which the existing Investment Management Agreement between
GHS and Gresham House Asset Management will move to the joint
venture once it is established.
There will be no changes to the terms of the investment
management agreement. GHS will also continue to be managed by the
same investment team using the same policies and processes.
Consequently, the novation is not expected to have any impact on
GHS.
GHS celebrated its third anniversary under Gresham House
management in 2018. GHS's NAV per share total return from inception
to 15th March 2019 was 30.8%, growing 12.5% ahead of the total
return of its benchmark the FTSE Small Cap (ex-investment trusts).
GHS was also the top-performing fund in its segment in 2018, and
this strong performance has continued into 2019 with the NAV +5.1%
YTD 2019. GHS continues to review opportunities to scale the
vehicle and promote this top-performing fund on a larger platform
and the joint venture with ASI is expected to assist in that
development.
Commenting on the developments, David Potter, Chairman of GHS
said:
"The announcement by Gresham House and Aberdeen Standard
Investments is an encouraging and positive endorsement of the
Strategic Public Equity Strategy and one which we welcome. We
believe GHS will benefit in future from the growing profile this
investment strategy is enjoying as a result of the proposed joint
venture, from increased resources that the joint venture is
expected to provide, and from the broad distribution capabilities
of ASI."
For further information, please contact:
David Potter
Gresham House Strategic plc Chairman 07711 450 391
Gresham House Asset Management Graham Bird
Ltd Investment Manager 020 3757 5613
FinnCap Stuart Andrews/William
Nominated Adviser and Broker Marle 020 7220 0500
Attila Consultants Charles Cook/Nita Shah 07710 910563
Notes to editors
GHS invests primarily in UK and European smaller public
companies, applying private equity techniques and due diligence
alongside a value investment philosophy to construct a focused
portfolio expected to be comprised of 10-15 companies.
The Strategic Public Equity mandate utilises the principles and
practices of private equity to invest in influential stakes in UK
smaller public and private companies which it believes to be
undervalued. As such, the team has an engaged, active style of
investing, working closely with management teams, to create
shareholder value through strategic or operational initiatives,
supporting a clear 3-5 year management plan to implement these
initiatives.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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