Gabelli Merger Plus+ Trust PLC - dedicated merger fund that invests globally but has "emphasis" on US-traded securities - Net asset value per share at June 30 falls 5.9% to USD9.35 from USD9.94 a year ago, citing global economic environment. Pays unchanged full year dividend of 48 US cents each. NAV total return turns to negative 1.3% from positive 12% a year prior. Swings to a pretax loss of USD988,000 in the year ended June 30, from a profit of USD10.9 million.
"Uncertainty surrounding the current state of the global macroeconomic environment, taxed supply chains and an ongoing war in Eastern Europe plagued the pace of deal making in the first half of 2022...Deal making in the technology sector slowed 19% year-over-year, but remained the most active, followed by industrials and financials," says Chair Marc Gabelli.
More positively, he adds: "We expect transaction activity to strengthen as companies gain more certainty in the face of current global concerns. As market valuations continue to reset, the strong US Dollar is enticing for corporate deal making, positioning American companies well in the competition for assets on a global basis.
Current stock price: USD9.00
12-month change: up 49%
By Tom Budszus; tombudszus@alliancenews.com
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Gabelli Merger (GMP)