Tag Archives: MSF

July CEF odd lot tender offers

While the JAKK and CACC tenders haven’t yet completed a bunch of new tender offers with odd lot provisions have already been announced for July. They are for closed-end funds, and instead of a fixed dollar value per share you will get a percentage of NAV. Since they are all trading at a discount this creates an opportunity with positive expected value, but you do have market risk while holding the position. Because of that I’m going to wait till the last moment before buying, since I don’t expect that the discount will significantly change between now and the close of the tender offer.

The following funds have announced a tender offer:

Fund Ticker NAV Last Price Offer Deadline EV ($)
MS Eastern Europe RNE 15.92 14.41 98.5% July 10 126
MS Emerging Markets MSF 14.90 13.58 98.5% July 10 109
MS India Investment IIF 16.18 14.63 98.5% July 10 129
Turkish Investment TKF 15.01 13.66 98.5% July 10 111
Latin American Discovery LDF 15.08 13.95 98.5% July 10 89
China Fund CHN 23.77 21.51 99.0% July 23 200

Total expected value for all the closed-end fund tenders is 764 dollars before transaction costs, or an ~8.4% return on a ~$9,000 dollar position that you have to hold for just a few days if you want to play it safe (although I actually think you don’t need to wait before the trade settles before you can tender, so you could buy on the last day).


Not long any of the funds, but will buy between now and the deadlines.