Hi Jane,
I wasn't aware of the run up in EFL but now that you mention it, wow! Almost +4% today on top of the action over the last week or so. Heavy volume too.
You probably made a good move by selling. This is what I was talking about earlier in this thread. Sell on the premium run up and move the proceeds to a discounted holding.The EFL market price has been moving very out of sync with the net asset value.
With regards to the proposed merger of EFL into ESD, back in Feb the BoD of both funds approved the proposal. Now it's up to a shareholder vote at the June 30th meetings.
More details are available in the N-14 filed March 28th.
Snipped:
| Q. |
Why is the merger being recommended? |
A.
Recent debt issuances by emerging market issuers have been
overwhelmingly fixed-rate in nature, causing Legg Mason Partners Fund
Advisor, LLC
(“LMPFA” or the “Manager”), EFL’s and ESD’s investment manager, and
Western Asset Management Company (“Western Asset”), EFL’s and ESD’s
sub-adviser, to believe that adherence to an investment
objective and investment policies that require 80% of EFL’s assets to
be invested in floating-rate emerging market debt is both impractical
to achieve and detrimental to EFL stockholders. In light of these
developments in the markets for
floating-rate emerging market debt securities and the beliefs of LMPFA
and Western Asset, the Board of EFL believes the merger of EFL into
ESD, a Fund that invests in a much broader range of emerging market
debt securities, would benefit EFL
stockholders by allowing them to continue to have exposure to emerging
markets through a Fund with more viable investment strategies.
Best,
Steve
