Australian (ASX) Stock Market Forum

Proposed Merger of CD Funds 1,2,3,4

Joined
11 October 2022
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I am concerned re the proposed merger of these funds. The Responsible entity states that the principal reason for the merger is because many investors are concerned that the shares (CD1,2,3 are listed on ASX) are trading at a discount to NAV. I bought my shares because the underlying strategy was to have invest, hold/develop shares in small to medium USA companies (or private equity funds that do) sell and return within a targeted 10 years, then wind up the fund. The current proposal will completely change this strategy with the responsible entity retaining dividends and expanding what will become an evergreen fund. Given recent history with other stock managed by this RE (eg. URF, NEW) I can't see this merger ending in anything but a destruction of the value of these shares.
Is anyone else concerned?
 
Joined
20 July 2021
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i avoided this group of funds ( and URF ) , mainly because i thought the future was more in Asia ( especially India )

but will watch in case other groups of funds do similar ( or worse , a fund manager i hold takes on this fund in the future , and all the latent baggage )
 
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