Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.
(Sharecast News) - FTSE 250 (MCX) 23,353.82 -0.04%
Energy solutions-focused investment trust, SDCL Efficiency Income Trust (SEIT), has recommended shareholders to vote in favour of a proposed wind-down following a period of a persistent share price discount to net asset value, causing shares to plummet on Tuesday.
As announced in April, SEIT's board said that the sustained discount to NAV, its gearing position and lack of access to equity capital meant that the "status quo was not sustainable". Major shareholders also voiced clear support for an orderly return of capital, the company said.
Shareholders are now being asked to vote on the wind-down objective and policy, and the cancellation of the share premium account, among other things.
If approved, SEIT will cease making new investments outside of the existing portfolio and will focus on the "orderly realisation of its assets, seeking to balance timely returns of cash to shareholders with the objective of maximising value".
Any initial proceeds from asset realisations would first be used to repay borrowings before any cash returns to shareholders, SEIT said.
In light of the proposed wind-down, the company decided not to declare a fourth interim dividend for the fiscal year to 31 March.
"The board has considered carefully the alternatives available to the company and unanimously concluded that the proposed wind-down is in the best interests of shareholders as a whole," SEIT said.
Rathbones shares were sliding on Tuesday after it said a skilled person review following engagement with the Financial Conduct Authority had identified areas for improvement in its UK Wealth Management business, including the implementation and embedding of Consumer Duty and aspects of compliance, oversight and assurance.
The FTSE 250 wealth manager said it would carry out a two-year programme to address the review's recommendations and conduct a targeted review of some clients to assess whether they had received good outcomes.
It also announced a voluntary pause of up to 12 months on onboarding new enhanced due diligence clients, and a pause on accepting inflows into general investment accounts from some existing EDD clients, affecting about 4,700 clients, or 4% of the total.
Rathbones said it expected related costs of £60m net of expected insurance recoveries over two years, while ceasing investment management fees on cash balances from 1 July is expected to reduce 2026 underlying pre-tax profit by about £9m.
"We are committed to operating to the highest standards on behalf of our clients," said chief executive Jonathan Sorrell.
Rathbones separately appointed Angela Seymour-Jackson and Kathryn Purves as independent non-executive directors, subject to regulatory approval, with Purves joining from 1 July and Seymour-Jackson from 1 October.
Chair Clive Bannister said they would bring "extensive experience across financial services, with deep expertise in commercial, governance, risk oversight and leadership across listed and private equity-backed businesses".
Frasers Group was hit by a downgrade to 'underperform' from 'sector perform' at RBC Capital Markets, while Currys was boosted by an upgrade to 'outperform' from 'sector perform' by the same outfit.
FTSE 250 - Risers
Edinburgh Worldwide Inv Trust (EWI) 291.00p 3.94%
Partners Group Private Equity Limited. (EUR) (PEY) 8.60p 3.37%
Chemring Group (CHG) 513.50p 2.90%
IntegraFin Holding (IHP) 362.50p 2.55%
Baillie Gifford US Growth Trust (USA) 339.00p 2.42%
W.A.G Payment Solutions (EWG) 104.20p 2.36%
Currys (CURY) 153.70p 2.33%
Johnson Matthey (JMAT) 2,140.00p 2.30%
QinetiQ Group (QQ.) 451.80p 1.75%
Lancashire Holdings Limited (LRE) 632.00p 1.69%
FTSE 250 - Fallers
SDCL Efficiency Income Trust (SEIT) 35.00p -23.91%
Rathbones Group (RAT) 1,624.00p -16.80%
Frasers Group (FRAS) 716.00p -4.91%
WH Smith (SMWH) 418.60p -4.89%
Ceres Power Holdings (CWR) 574.50p -3.77%
Harbour Energy (HBR) 242.60p -3.35%
Raspberry PI Holdings (RPI) 841.25p -3.27%
Wetherspoon (J.D.) (JDW) 648.00p -3.07%
Pagegroup (PAGE) 122.30p -3.01%
Diversified Energy Company (DI) (DEC) 976.00p -2.98%
