CHICAGO--(BUSINESS WIRE)--Pekin Singer Strauss Asset Management, investment advisor to Appleseed Fund (NYSE: APPLX, APPIX) and high-net-worth individuals, is supportive of shareholder proposals put forth by Polar Securities and is encouraged about an exchange offer by Sprott Asset Management to acquire outstanding units of Central GoldTrust (NYSE: GTU).
Both solutions are superior to the status quo because they should significantly reduce Central GoldTrust’s current net asset value discount by implementing a physical redemption feature, explained Adam Strauss, co-CEO of Pekin Singer Strauss, Central GoldTrust’s largest unitholder.
Pekin Singer Strauss first purchased Central GoldTrust in 2010 and currently holds more than 1.2 million units through its separately managed accounts and Appleseed Fund, a go-anywhere value mutual fund where Central GoldTrust is a top holding.
Sprott Asset Management, an alternative asset manager, announced April 23 its intention to offer units of Sprott Physical Gold Trust and Sprott Physical Silver Trust in exchange for units of Central GoldTrust and Silver Bullion Trust, both of which offer a physical redemption feature.
“The Polar Securities shareholder proposals are worth supporting because they would likely eliminate most or all of the current net asset value discount on Central GoldTrust shares by implementing a physical redemption feature for Central GoldTrust units. We voted our shares in favor of Polar’s proxy proposals and in favor of Polar’s proposed trustees,” said Strauss.
“For similar reasons, an exchange offer by Sprott would also enhance unitholder value,” he added. “Sprott Physical Gold Trust, which our investors also own, already offers a physical redemption feature. Like Polar’s proxy proposals, an exchange offer with Sprott Physical Gold Trust would similarly eliminate the current net asset value discount on Central GoldTrust units.”
“We join with Polar Securities in welcoming Sprott’s exchange offer and hope it will be evaluated by the board of trustee candidates being nominated by Polar,” said Strauss. “Given Polar’s large ownership stake in Central GoldTrust, these individuals will be better positioned to consider Sprott’s offer more objectively.”
About Pekin Singer Strauss Asset Management
Founded in 1990, Pekin Singer Strauss Asset Management is a leading investment manager that seeks to generate superior returns over time by pursuing a disciplined value investing approach which minimizes investment risk with clients’ capital. The independent, employee-owned firm is committed to maintaining the highest standards of ethics and objectivity and to serving as its clients’ trusted advisor. For more information, visit www.pekinsinger.com. Pekin Singer Strauss Asset Management is registered with the SEC as an investment adviser.
Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Investments in commodities may be affected by overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes and international economic and political developments. Commodities are assets that have tangible properties, such as oil, metals, and agricultural products. These instruments may subject the Fund to greater volatility than investments in traditional securities.
As of 03/31/2015 Appleseed Fund invested 11.3% of its portfolio into Central GoldTrust (NYSE: GTU).
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-800-470-1029. Distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN 46208. (Member FINRA)
