If nothing changed except E&P was replaced by Pengana /...

If nothing changed except E&P was replaced by Pengana / Grosvenor (or a similar competent manager), the CD Fund discounts would pretty quickly close by 10-20%. That's about the size of the discount solely being placed on E&P's stewardship of the CD Funds.

Smart shareholders shouldn't cop this loss. Our initial job is to get rid of E&P. The first step was the humiliating defeat of E&P's merger proposal by a majority in ALL CD Funds - including CD4 (who stood to benefit in most ways except being stuck with E&P).

E&P now has the clear message we will block all attempts by them to turn the currently self-liquidating funds into their captive capital they can squeeze fees out of indefinitely. Major shareholders will continue campaigning to highlight E&P's (and the Directors) failings. The reputational consequences will pile up. Have a look at EP1's share price!

Much more diligent and professional stewardship is needed to maximise value. So the next step is to replace E&P and the Directors. Pengana Capital will come back and I wouldn't be surprised if others joined in. It may take time though.

There is still an overhang of Dixon Advisory clients who were inappropriately sold into these in-house funds that has to rotate to investors who fully understand what they're buying and really want it. So in a takeover/merger, taking a haircut on NTA is somewhat inevitable given the lopsided buyer vs seller ratios.

Nevertheless, I'm much happier waiting for the distributions at NTA than selling at a massive discount. The lure of the captive capital should reward the patient.