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Fortress offers share swap to clients who own Massy shares


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Fortress offers share swap to clients who own Massy shares

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BRIDGETOWN, Barbados – Fortress Fund Managers, a leading fund manager, has announced an investment option for its clients who own shares in Massy Holdings Limited.

This opportunity comes after the recent delisting of Massy Holdings Limited (Massy) from the Barbados Stock Exchange. In correspondence sent to its clients on February 16, Fortress made the exclusive offer to those of its clients who independently own shares in Massy.

“As you may be aware, Massy Holdings Limited (“Massy”) recently announced its intention to delist its shares from the Barbados Stock Exchange and for the shares to cease trading in Barbados.  As a result, Massy’s Barbados investors are now required to take action and have been offered two options with respect to their shares,” the correspondence reads. Those options are (i) opening a brokerage account in Trinidad either directly or via a broker in Barbados and transferring the Massy shares there for safekeeping and/or eventual sale; or (ii) requesting physical delivery of the shares in certificate form.

Fortress, in addition to these options, decided for the convenience of its investors to highlight a third one.  “As an accommodation for Fortress clients only, we would like to add a third option – swap your Massy shares into the equivalent value in shares of the Fortress Caribbean Growth Fund.”

Portfolio manager at Fortress, Chris Callender, explained that the option to swap shares has been in place for investors since the Caribbean Growth Fund’s launch in 1996.  It simply involves clients selling their shares to the Fortress Caribbean Growth Fund in exchange for shares of identical value in Fortress’ Caribbean Growth Fund. He added that the Massy swap would be accomplished efficiently with no brokerage commissions charged.

 “The only cost would be the nominal Barbados Stock Exchange fee which applies to all trades. The sale price would be based on the most current prevailing price in the main market for the Massy shares in Trinidad.  After the swap is completed, clients would then have a diversified, long term mutual fund investment of identical value without the need to move securities to Trinidad or take physical delivery of shares,” Callender said.

Highlighting other benefits of this offer, the portfolio manager said, “We recognise that many of our investors who might also be Massy shareholders may not be involved in the market at the same level as we are, so we made this offer to simplify their options.”

As at December 31, 2014 the Fortress Caribbean Growth Fund had generated an annual compound return of 9.1 per cent since its inception in 1996. Callender also said that Fortress would make the share swap as simple as possible. “Clients can simply contact our office by phone or email and we’ll walk them through the process. Our aim is really to make it as easy and seamless as possible – that’s one of qualities that we’re known for.”

Fortress currently has about three per cent of the Caribbean Growth Fund shares invested in Massy. “Fortress has owned Massy shares for quite some time and view them as very good quality. So through the share swap we’re open to acquiring an amount that maintains the Growth Fund’s position in the Massy shares in a range that we’re happy with,” Callender said.

When asked if there were any limitations to the offer, the portfolio manager said that it was available for a limited time and only to Fortress clients. (PR)

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