Australia's Monash Absolute Investment Co. Ltd. plans to restructure itself into an exchange-traded managed fund.
Under the plan, the company's shareholders would receive units in an ASX-listed exchange-traded managed fund that would hold Monash's existing portfolio of listed investments, with a small percentage of unlisted investments retained in Monash.
Monash Investors Pty Ltd. will continue to manage the portfolio. There will be no change to the portfolio investments of Monash investors after the restructuring.
Monash said the proposed restructure will address the large discount to the net tangible asset value at which the company's shares have historically traded. The new units will trade on ASX in a tight band around the net tangible asset. The restructure would also resolve the company's liquidity issue. The company's board estimates that the ongoing running cost of the exchange-traded managed fund will be about A$100,000 less that the cost of the current company structure.
The proposed restructuring is subject to the approvals of its shareholder and ASX.