The BlackRock Hedge Selector investment trust is set to liquidate after proposals to adjust the trust’s strategy were found to be lacking “feasibility”.
The board of the trust today announced it is set to “propose to shareholders that the company be de-listed and wound up”.
Following the liquidation, which is expected to take place in March or April 2015, current investors will be paid their share of the net asset value of the trust, minus the costs of liquidation.
The trust was designed to provide investors exposure to certain underlying BlackRock funds, but for some time it has only invested in the BlackRock UK Emerging Companies hedge fund.
The trust is currently managed by BlackRock’s Ralph Cox, who took over as sole manager after Richard Plackett gave up his co-manager role following his recent return from a sabbatical.
The future of the trust had been in doubt for the past few months due to its small size and the level of the discount the shares traded at relative to the net value of the trust’s assets.
The board had undertaken a consultation on the trust’s future and had announced last week that it was “considering proposals from a third party in relation to a different investment strategy”.
But that change in strategy has now been found to be unfeasible so the board has decided to liquidate the trust.