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Fund management

Mutual Fund Restructuring

Fund management · Value

the case studyChallenge, approach, result.

1the challenge

Challenge: A multi-billion-dollar fund was trading at a high discount to net asset value costing the shareholders millions. A hostile institutional investor was mounting a proxy fight to take over the board.

2the approach

Diagnosis: Qualitative and quantitative research revealed relatively simple issues with the structure of the fund that frustrated investors. They also didn’t understand the strategy.

3the result

Result: The fund was restructured to better align with the needs of investors. In less than a year the discount to net asset value was cut in half. The restructuring foiled the hostile takeover.