The London Stock Exchange has won another dual listing of a listed hedge fund with Boussard & Gavaudan Asset Management’s announcement that it will join Marshall Wace in London.
The firm plans to list its Boussard & Gavaudan Holding fund, which debuted on Euronext Amsterdam in November 2006, on the LSE on June 17, subject to shareholder approval. The decision leaves Amsterdam with no single-manager hedge fund vehicles exclusively listed at its bourse.
B&G said it will create a pound sterling share class to facilitate the London listing. Both the new sterling and existing euro share classes will be listed on both exchanges; investors will be able to convert between them on a quarterly basis.
“These measures are aimed at achieving liquidity and transparency for the benefit of shareholders, and it is hoped that the quarterly conversion facility will assist B&G Holding in accomplishing these objectives,” B&GAM CEO Emmanuel Gavaudan, said. “The proposals the company has announced are intended to be shareholder-friendly and to bring long-term benefits to all investors.”
B&G Holding, which raised US$1.5 billion in two share sales on Euronext Amsterdam, has seen its net asset value fall 3.2% in 2008. B&GAM is also concerned about its persistent discount to NAV, currently about 16%.