(Alliance News) - Alcentra European Floating Rate Income Fund Ltd on Thursday said it has decided to pursue a managed wind-down of the company and return cash to shareholders.
"Over the course of the last decade, as expectations of rising rates gave way to expectations that rates would stay low for longer, the demand for floating rate listed funds diminished. As a result, the company ceased trading at a premium to net asset value rating and has been returning capital to shareholders for two years. The board does not expect to see a reversal in this trend in the near future," the investment fund said.
Alcentra intends to call an extraordinary general meeting of shareholders to seek approval for a managed wind-down.
Shares in Alcentra were down 3.0% at 92.75 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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