The Lemon Fool

I see that they are currently conducting a modest fundraising at a premium to current NAV of I think 6%. Good for continuing investors like me! Also it is surely significant that this appears to be to help accommodate the desire of a large fund manager to take a presumably significant stake in JGGI.

JGGI has been very active in the last few years in absorbing the assets of smaller rivals and this has of course helped to bring down the management fee so for the time being they seem to be flavour of the month.

Dod

Dod101 wrote:I see that they are currently conducting a modest fundraising at a premium to current NAV of I think 6%. Good for continuing investors like me! Also it is surely significant that this appears to be to help accommodate the desire of a large fund manager to take a presumably significant stake in JGGI.

JGGI has been very active in the last few years in absorbing the assets of smaller rivals and this has of course helped to bring down the management fee so for the time being they seem to be flavour of the month.

Dod

I read it as a premium of 0.6%, compared to a typical premium of 1.2%.

It might have been a nice gesture if they had issued the new shares at par. But this puppy has done very well, and the faux dividend yield of 4% was a smart move given that it seduces support, and therefore a premium.

I already have a large position and so will pass.

Lootman wrote:

Dod101 wrote:I see that they are currently conducting a modest fundraising at a premium to current NAV of I think 6%. Good for continuing investors like me! Also it is surely significant that this appears to be to help accommodate the desire of a large fund manager to take a presumably significant stake in JGGI.

JGGI has been very active in the last few years in absorbing the assets of smaller rivals and this has of course helped to bring down the management fee so for the time being they seem to be flavour of the month.

Dod

I read it as a premium of 0.6%, compared to a typical premium of 1.2%.

It might have been a nice gesture if they had issued the new shares at par. But this puppy has done very well, and the faux dividend yield of 4% was a smart move given that it seduces support, and therefore a premium.

I already have a large position and so will pass.

You are of course correct. Sorry about that. The faux dividend as you have called it is the one thing that concerns me a bit but as long as they can keep adding to the NAV it works very well but I am conscious of the problems which that policy can invoke such as with HFEL.

Dod