SEC trust lines up contingent tenders in further efforts to tackle persistent discount

Discount has narrowed in recent months

Mike Sheen
clock • 2 min read
Gresham House's Ken Wotton has managed SEC since September 2020
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Gresham House's Ken Wotton has managed SEC since September 2020

The board of Strategic Equity Capital (SEC) Investment trust is preparing to put in place two separate contingent tenders in 2022 and 2024 as part of its ongoing battle to tackle the company's persistent discount to NAV.

SEC, which has been managed by Ken Wotton of Gresham House since September 2020, recently survived a discontinuation vote called by a minority of shareholders in relation to the ongoing discount and performance concerns. Following the vote, the board pledged to work constructively with disgruntled shareholders, while Gresham House provided support by purchasing 5.4% of the trust's share capital. In an update to investors this morning (28 May), SEC acknowledged that the discount to NAV "has been a source of frustration" for shareholders, but noted the average discount has narrowed sign...

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