News
GILD Arbitrage to postpone redemptions and subscriptions until May 5th 2009
GILD Fund Management, the management company of GILD Arbitrage Risk Capital Fund, has decided according to law and fund terms to postpone the redemptions and subscriptions of GILD Arbitrage fund units as of the end of October 2008 until May 5th 2009, that is six redemption periods of the fund. Fund investors and Estonian Financial Supervision have been notified about the decision.
"This decision was made due to the current situation on the global financial markets that makes it impossible to determine the NAV (Net Asset Value) of the fund to be used for redemptions and subscriptions without facing the risk of treating some investors unfairly. Due to market turbulences the range of NAV is too wide to determine the fair value and in the long term perspective we do not want to act too hastily in realizing the potential of our fund investments. We are convinced that postponing redemptions and subscriptions is the best action possible to protect and maximize the return for our investors. It is also good that during these turbulent times we can give the existing portfolio of GILD Arbitrage our full attention," explained Tõnno Vähk, fund manager for GILD Arbitrage.
Vähk added that redemption and subscription into the fund will be resumed as soon as the fund manager can establish the fair NAV.
GILD Bankers together with GILD partners, employees is the largest long-term investors of the fund covering 9 percent of investments in the portfolio.
During the next six months the fund managers will continue to work with the current investment portfolio of GILD Arbitrage. However, fund manager has decided to postpone collecting management fees for the period as these are also connected to the NAV of the fund.
GILD Bankers is the leading Baltic investment bank active in Emerging Europe. The core services of GILD are management of alternative funds, investment banking and private banking. Baltic countries are the home markets of GILD, but the area of activities and investments extends to the CEE and CIS region.
GILD Arbitrage is a public closed-end risk capital fund with a total of assets close to EUR 100 mln. GILD Arbitrage has around 300 investors. Average annual net return of the fund since inception is 23%. In 2008 as of the end of September the net return is more than 11%.
For additional information, please contact:
Kadri Kütt
Communication Manager
GILD Bankers
+372 56 800 467