Equity Trustees to de-list PGG from ASX

Oksana Patron

3 May 2023

Equity Trustees together with Partners Group have proposed to de-list Partners Group Global Income Fund (PGG) from the Australian Securities Exchange (ASX) due to its continued trading at a significant discount to its net asset value (NAV).

In the announcement made to the ASX, both firms agreed that the fund would more appropriately operate in an unlisted format with monthly redemptions and subscriptions based on NAV.

However, the decision to de-list would require unitholder approval, with an extraordinary general meeting to be held “around July”.

“We anticipate that unitholders will be provided with an explanatory memorandum and notice of meeting setting out the details of the proposal over the coming weeks,” the firm said.

At the same time, Equity Trustees advised that for investors wanting to redeem their investment after the fund’s de-listing, liquidity would be generated by either using cash balances or selling assets to meet redemption requests.

It was also proposed that redemptions would be subject to a limit of 5% of NAV per month.

For an interim transition period of 12 months from de-listing an exit fee would be applied for the benefit of the fund, initially starting at 7.5% for the first four months, 5% for the following four months, and 2.5% for the final four months.

The ASX has given its in-principle approval for the de-listing, subject to conditions including that unitholders would be able to sell their units in PGG on the ASX for a minimum period before the fund is de-listed.