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Central Fund of Canada Limited Message Board

  • billofwest billofwest Oct 18, 2012 9:11 PM Flag

    CEF Prospectus

    "Under the Prospectus, the Class A Shares may be issued from time to time at the discretion of Central Fund, with an aggregate offering amount not to exceed U.S.$1,000,000,000. Central Fund will only proceed with any such offerings if they are non-dilutive to the net asset value of the Class A Shares owned by the existing Shareholders of Central Fund. Substantially all of the net proceeds of the offering will be used for gold and silver bullion purchases in keeping with the asset allocation policies established by the Board of Directors of Central Fund. Any additional capital raised by any such offering is expected to assist in reducing the annual expense ratio in favour of the Shareholders of Central Fund."

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    This explains the 32 cent drop today, in comparison with other PM closed end funds.

    Does anyone recall how long it was last time from the CEF Prospectus to the actual offering?

    Sentiment: Buy

14.05-0.080(-0.57%)Sep 23 4:01 PMEDT