Listed funds pushed to provide better transparency on individual transactions

Increase in trust's purchasing affiliated assets

Mike Sheen
clock • 2 min read
Purchasing of assets from affiliated companies is becoming increasingly common for listed funds
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Purchasing of assets from affiliated companies is becoming increasingly common for listed funds

Investment bank and brokerage Stifel has called for more transparency on individual transactions to relieve concerns that investment trusts are being used for "asset dropping".

In a research note, Stifel said transparency "is the best tool" and factors such as transaction price, rationale and independent valuation opinions should be included as part of any individual transaction. Liontrust's Michaelis on ESG trust: 'There are very few trusts out there with similar offerings' According to Stifel, the purchasing of assets from affiliated companies is becoming increasingly common for listed funds, with recent transactions by Gresham House Energy and Round Hill Music cited as examples. The research report added: "We would welcome information such as the selli...

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