LONDON (Alliance News) - Gabelli Merger Plus Trust PLC said Tuesday it outperformed its benchmark, despite a reduced net asset value per share, in its first year listed on London's Main Market.
At the end of the year, June 30, Gabelli's net asset value per share cumulative of income was USD9.84, down from USD9.92 the year before.
The investment manager's net asset value per share total return was 2.8% compared to the company's benchmark, the 3-month US Treasury Bill index, returning 1.3%.
This is Gabelli Merger's first annual report after listing on the Specialist Fund Segment of the Main Market in July 2017.
Gabelli Merger's return was "strong" relative to other merger arbitrage indices such as the S&P Merger Arbitrage Index, which gained 1.5% and the CS Merger Arbitrage Liquid Index, gaining 2.3% in the period.
Global merger & acquisition activity totalled USD2.5 trillion in the first six months of 2018, the strongest first half on record and a 61% increase year-on-year, which Gabelli Merger said drove the company's performance.
In particular, the agreed acquisitions of American health care companies Aetna Inc and Foundation Medicine Inc and American real estate investor Gramercy Property Trust were highlights in Gabelli Merger's portfolio.
Looking ahead, the company remains "optimistic". Gabelli Merger believes the components are in place for "positive shareholder returns".
Rising deal risk premiums and rising interest rates combined with "healthy" deal volumes provide a "fertile picking ground".
During the year, the company paid out dividends of USD0.47 per share.
Shares in Gabelli Merger Plus were untraded Tuesday but last closed at 133.50 pence each.
Gabelli Merger (GMP)