Buy-back offers at closed-end funds

1 closed-end fund has an offer to buy back shares open right now.

96 offers have finished in the last two years, with results on file for 94 of them.

In a buy-back the fund offers to buy some of its shares at close to the full value of its holdings. You decide whether to take part, by the date shown; if you do nothing, you keep your shares.

Your broker's letter may call this a "tender offer".

Open right now

Results of finished offers

Earlier offers, now closed

A letter about a buy-back came in the post - what now

The letter means the fund has offered to buy back some of its shares, usually at close to the value of its holdings. When the shares trade below that value, as closed-end fund shares often do, the offer is more than the market pays. Your broker sent it because you hold the fund. Nothing has happened to your shares yet.

You have three choices: offer all of your shares, offer some of them, or do nothing and keep them. There is no penalty for doing nothing. Some brokers charge a fee for handling the offer - ask yours.

If more shares are offered than the fund will take, everyone is cut back in proportion, so offering all of your shares gets you the most; a holder who wants to stay in the fund can buy shares back on the market afterwards. Some offers take every share from holders of fewer than 100 shares before cutting anyone back; the offer document says whether this one does. Where the fund filed its results, its page says what happened to holders in its last buy-back - in many of the offers we have on file the fund bought only a small part of what was offered.

The fund's date is the last day it accepts shares. Brokers usually need your instruction a business day or two earlier - ask yours for its own cut-off. If you miss the date, you keep your shares.

The price is set at the end, from the value of the holdings on the last day, and the cash arrives through your broker within a few days after the offer ends.

Look your fund up on this site: its page shows whether an offer is open, the date, the terms and the original document, and you can add the date to your calendar from there. This is information, not advice.

The full guide, with how to answer through your broker

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