RM Infrastructure Income proposes new investment objective as part of managed wind-down
An amendment to the investment management agreement has also been proposed, which will maintain the fee at its current 0.875% of NAV annual rate but become subject to a minimum fee of £33,000.
According to a regulatory filing today (30 November), the board intends to restate the trust's investment objective to «conduct an orderly realisation of the assets of the company, to be effected in a manner that seeks to achieve a balance between returning cash to shareholders promptly and maximising value».
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The board unanimously recommended shareholders vote in favour of the shift, which it argued will allow the managers to reduce the expected maturity profile of the run-off portfolio from 1.7 years to less than one year, helping shareholders receive their capital earlier.
Alongside this, proactive management will enable the managers to return «a significant amount of capital» in 2024 and reduce predicted management fees by roughly £770,000.
An amendment to the investment management agreement has also been proposed, which will maintain the fee at its current 0.875% of NAV annual rate but become subject to a minimum fee of £33,000.
This will remain until either the company is liquidated, the value of the portfolio falls below £35m, or 31 December 2026 passes.
Throughout the process, if approved, the board intends to reduce dividend payments so far as it will only pay the amount «required to maintain investment trust status».
When the trust becomes «too small to justify costs», the board intends to enter members' voluntary liquidation.
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Shareholders will be able to vote on the proposal at
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