The ruling may lead to abnormal share price movements in the period following the ruling, as a result of which Van Lanschot Kempen Investment Management has taken this decision to protect investors in the fund against potentially adverse effects.
In the event of a positive ruling by the Supreme Court for SNS compensation claim holders, the fund will remain closed to new entrants and/or leavers until payment of the determined compensation. It is expected that the payment will be made within thirty days, as this is the legal deadline for payment of the compensation in this procedure. If the Supreme Court rules negatively or postpones the ruling, the Phoenix Fund will reopen on January 30 for daily purchases and sales.
The temporary closure is due to the significant size of the holdings in the fund combined with their non-tradability during the payout process. In case of a positive ruling, the compensation payment will have a clear positive effect on the price of the fund. This decision was taken to protect the current participants in the Phoenix Fund against possible mispricing, dilution and/or unexpected price reductions of the underlying assets.
The Phoenix Fund has been invested in the SNS compensation claims as a distressed debt fund since 2013. These positions are expected to increase significantly in value following a positive ruling by the Supreme Court. This is the first time in the existence of the fund that Van Lanschot Kempen Investment Management believes that a temporary closure is necessary. Van Lanschot Kempen Investment Management, as manager of the Phoenix Fund, sees it as its duty to protect the current participants in the fund as best as possible during impactful situations such as this.