Ann: Change in substantial holding, page-39

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dealmein

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01/08/23

14:48

Post #: 69101659
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Originally posted by otherperspective: ↑

@col69

I think the answer is pretty straightforward. According to the latest funds report dated 30th June 2023, M&G Recovery Fund had a Mesoblast holding valued at approx £35m (3.1% of the fund) making it the 8th largest holding in the Recovery Fund. As the price rose in anticipation of the PDUFA date it must have represented close to a top 5 holding. All the other top 10 holdings in the Recovery fund are basically blue chips, so I presume the investment team there is obviously very keen on Mesoblast as an investment… or it would not be so overweight. There are, however, percentage holding limits in most funds, so I expect when it got close to 5% they must have been forced to trim the holding . Just sensible portfolio management …nothing sinister at all. Perhaps a more sobering thought is how much further the share price might have run up without this selling. Typically for M&G, as supportive shareholders who have backed virtually every placing , they appear to be top slicing on rising prices reflecting the rising concentration risk in their portfolio. It should also be noted that the last 12 months have seen many UK smaller companies funds receiving redemptions owing to rising interest rates …but I think that trend is levelling off as we are close to a peak in the UK. OP

https://www.trustnet.com/factsheets/o/hvw0/mg-recovery-i-acc-gbp

Please do not rely on the accuracy of any fact or opinion in the above post when making an investment decision . Much of this post is conjecture .

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Thanks for that post otherperspective, it calms my nerves now having a reason for the decline in share price. No doubt this selling by this fund has also triggered others into selling due to the declining share price people have got twitchy.

MSB Price at posting: $1.09 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

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