Gresham House Strategic PLC Conditional novation of IMA (5928T)

TIDMGHS

RNS Number : 5928T

Gresham House Strategic PLC

21 March 2019

Gresham House Strategic plc

("GHS" or the "Company")

Conditional novation of Investment Management Agreement with Gresham House Asset Management

Gresham House plc ("Gresham House", ticker "GHE") has this morning announced that it has entered into an agreement which proposes the formation of a 50:50 joint venture with Aberdeen Standard Investments ("ASI") relating to its Strategic Public Equity ("SPE") strategy. The formation of the joint venture is subject to a number of conditions. It is expected that the joint venture will establish a new fund, grow funds under management that employ the SPE approach and accelerate the growth of Gresham House's existing SPE strategy led by Graham Bird and Tony Dalwood.

As part of the arrangements, GHS has signed a novation agreement under which the existing Investment Management Agreement between GHS and Gresham House Asset Management will move to the joint venture once it is established.

There will be no changes to the terms of the investment management agreement. GHS will also continue to be managed by the same investment team using the same policies and processes. Consequently, the novation is not expected to have any impact on GHS.

GHS celebrated its third anniversary under Gresham House management in 2018. GHS's NAV per share total return from inception to 15th March 2019 was 30.8%, growing 12.5% ahead of the total return of its benchmark the FTSE Small Cap (ex-investment trusts). GHS was also the top-performing fund in its segment in 2018, and this strong performance has continued into 2019 with the NAV +5.1% YTD 2019. GHS continues to review opportunities to scale the vehicle and promote this top-performing fund on a larger platform and the joint venture with ASI is expected to assist in that development.

Commenting on the developments, David Potter, Chairman of GHS said:

"The announcement by Gresham House and Aberdeen Standard Investments is an encouraging and positive endorsement of the Strategic Public Equity Strategy and one which we welcome. We believe GHS will benefit in future from the growing profile this investment strategy is enjoying as a result of the proposed joint venture, from increased resources that the joint venture is expected to provide, and from the broad distribution capabilities of ASI."

For further information, please contact:

 
                                 David Potter 
 Gresham House Strategic plc      Chairman                07711 450 391 
Gresham House Asset Management   Graham Bird 
 Ltd                              Investment Manager      020 3757 5613 
FinnCap                          Stuart Andrews/William 
 Nominated Adviser and Broker     Marle                   020 7220 0500 
Attila Consultants               Charles Cook/Nita Shah   07710 910563 
 

Notes to editors

GHS invests primarily in UK and European smaller public companies, applying private equity techniques and due diligence alongside a value investment philosophy to construct a focused portfolio expected to be comprised of 10-15 companies.

The Strategic Public Equity mandate utilises the principles and practices of private equity to invest in influential stakes in UK smaller public and private companies which it believes to be undervalued. As such, the team has an engaged, active style of investing, working closely with management teams, to create shareholder value through strategic or operational initiatives, supporting a clear 3-5 year management plan to implement these initiatives.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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March 21, 2019 06:46 ET (10:46 GMT)