Equities
Investors withdraw 79% of RAB Special Situations AUM
Joe McGrath, 07 April 2011
RAB Capital has received redemption requests equaling 79 per cent of the current assets in the RAB Special Situations closed ended fund, it has confirmed.
The redemption deadline passed on Monday for investors seeking to cash in their investment on 1 October 2011 and the fund will now look to distribute around £226.5 million (US $370 million) of the £287.7 million (US $470 million) fund.
The fund has been closed to redemptions since 2008 when the fund made a series of poor investments including taking an ill-advised 8.2 per cent stake in the now nationalised lender Northern Rock.
Charles Kirwan-Taylor, chief executive of RAB Capital, said the fund was now ‘in a position’ to address problems experienced following the credit crisis of 2008.
He said, ‘We look forward to deploying the skills of our natural resources investment team in new and more liquid strategies, where we have demonstrated outperformance in the past, including a revised mandate for the Special Situations Fund and the UCITS strategies that will launch next week.’
The company said redemptions were in line with expectations and that the fund has adequate liquid resources to pay the amount in full.
The impact of these redemptions on the fund’s revenue for 2011 relative to 2010 will be equal to approximately -5 per cent.
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