Should be fun to watch this trajectory.
The SEC has given Third Avenue the injunctive relief it totally didn’t need to close its collapsing high-yield bond fund and dump its assets into an illiquid liquidating trust and then turn it back into a mutual fund unique in the industry insofar as you can’t redeem from it.
So, no, Third Avenue shareholders, you can’t have your money back and you can’t really sue. But perk up, Buttercup, all’s not lost. The SEC has extracted for you the right to see just how badly your investments are doing on a daily basis.
The deal with the SEC means investors will continue to be blocked from withdrawing their investments in the fund and may not receive all their money back for months, if not more, as the fund slowly sells assets and returns cash.
But the investors, who are expected to receive a first cash payment today, now will be able to see updated, daily net-asset values for their holdings, something they wouldn’t have been able to obtain had the assets remained in the trust. Third Avenue won’t charge a management fee as the fund’s assets are sold.
So that’s nice. Merry Christmas.