Fidelity Emerging Markets launches tender offer for up to 15% of share capital
According to data from the Association of Investment Companies, Fidelity Emerging Markets holds £610.9m in assets under management and is trading at a 10.4% discount to net asset value.
In a stock exchange notice on Monday (28 November), the board said the pricing of the tender offer, which is subject to shareholder approval at a general meeting, is expected to be at the prevailing NAV per share less 2%, with further details announced in «due course».
According to data from the Association of Investment Companies, Fidelity Emerging Markets holds £610.9m in assets under management and is trading at a 10.4% discount to net asset value.
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«The board of directors is mindful that the company's shares have traded at a discount to NAV for some time, and frequently deliberates appropriate discount control mechanisms to address the imbalance between the demand and supply of the company's shares,» it said.
Earlier this month, FEML implemented a share buyback programme to repurchase up to 14.99% of issued share capital, subject to authority for such repurchases being renewed at the annual general meeting on 7 December.
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«The board intends to continue using its buyback programme to address the discount to NAV with the ambition that it may ultimately be maintained in single digits in normal market conditions on a sustainable basis,» it said.
The trust has been managed by Fidelity since October 2021, with portfolio managers Nick Price and Chris Tennant using an all-cap stock-picking approach, investing in emerging markets exposed companies, with the ability to invest in both listed and unlisted companies.
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