MONOLITH US investment manager BlackRock is considering closing its £34m BlackRock Hedge Selector trust as it nears the end of a shareholder consultation, the company said in a statement yesterday.
The board of the trust – formerly run by fund manager Richard Plackett – started the consultation in early September to review the trust’s investment objective and the policy of its existing share class.
Towards the end of the consultation period, the board received a proposal from a third party regarding a new investment strategy. The board is now considering the feasibility of the proposals, but if it fails to convince, the board will recommend the liquidation of the trust.
The statement said: “In the event that this feasibility review concludes that the proposals are not a viable option for the company, the board intends to propose to shareholders that the company be wound up and investors will receive exit proceeds equivalent to NAV less the costs of liquidation.”
The board will announce it decision no later than 19 December, the statement added.
Launched in September 2009, BlackRock Hedge Selector is a closed-ended investment company incorporated in Jersey.