ADF Facilities Regulatory News (ADF)

24 Feb 2005 09:00

Progressive Euro Alt. Portfolio Ltd24 February 2005 Proposals for amendment of investment objective, a placing to expand the fund, change of management arrangements and change of name to Advance Focus Fund Limited The board of Progressive European Alternative Portfolio Limited (the "Company")announces today that it will be putting forward proposals which consist of anamendment of investment objective, a placing to expand the fund, a change ofmanagement arrangements and a change of name. The Company was launched on 19 December 2002 as a fund of European hedge funds.At the time of the launch it was expected that demand for this type of productwould increase substantially, enabling the Company to expand and provideliquidity for investors. The Company has achieved positive returns and recent performance has beenencouraging. Notwithstanding this relative performance has lagged the strongrecovery of the European equity markets as illustrated by the rise in theFTSEurofirst 300 Index over the short period since launch. Investor demand forthe Company's remit has not developed as anticipated so that it has not beenpossible to expand the size of the Company and provide adequate liquidity forinvestors. In the light of these circumstances the directors initiated a review of theCompany's future. The board and its advisers have consulted shareholdersrepresenting a majority of the Company's issued share capital to ascertain theirviews about the Company's remit and prospects. In addition, other potentialinvestors and advisers have been consulted. Following these consultations thedirectors concluded that it was not clear when opportunities to expand theCompany with its current remit would occur and that in these circumstances asignificant proportion of existing investors would not wish to continue with theexisting remit. However, a number of those shareholders consulted also indicatedthat they would in principle support proposals for the continuation of theCompany with a different investment remit if the objective were to improve themarketability of the shares and enlarge the Company. The board will be proposing the following: - Amendment of investment objective. The Company will become a focus fund with a new investment objective of outperforming the FTSE All Share Index. The fund will comprise of a concentrated portfolio of around twenty holdings of undervalued stocks in the FTSE All Share Index; - A placing to provide new funds for investment and to expand the fund; - Change of management arrangements. The Company proposes to appoint Progressive European Markets Limited as the new investment manager. James Carthew, who manages Advance UK Trust plc, will be the lead manager and he will be supported by Simon Toynbee and Chris Norris, two senior fund managers within the Progressive Group; and - Change of name to the Advance Focus Fund Limited reflecting the new investment objective. As the Company will not be continuing as a fund of hedge funds notice will nowbe given to realise all the current investments of the Company and if theproposals are not approved the directors intend to convene a further meeting ofthe Company to consider proposals for the liquidation of the Company and returnof funds to shareholders. Further details of the above proposals which will require approval at anextraordinary general meeting will be sent to shareholders in the near future. Enquiries: Progressive European Markets Limited 020 7566 5530James CarthewMarshall Securities Limited 020 7490 3788Rob Luetchford/Gary Pinkerton This information is provided by RNS The company news service from the London Stock Exchange