RE:RE:RE:Termination Extension AnnouncementDF has a Special Retraction Privilege every five years to allow shareholders to exit their investment at NAV. This is hugely beneficial since investors are not forced to sell into the market at low prices in the event funds are required.
The last retraction was in 2019, and the next one, after this year's, will be in 2029. This is how the process works:
Unless the markets have a massive crash, preferred shareholders can retract their shares for their nominal $10.00 value. They cannot get more than this. Class A shareholders will get the unit NAV on November 29th less $10.00. So it the unit NAV were to close at $15.00 on that date, Class A shareholders would get $5.00. Of course, the NAV closed slightly above $15.00 yesterday, but it could change drastically by the redemption date.
Shareholders need to call their broker more than a month before the retraction date to advise them of their desire to tender their holdings. I would call in early October to make sure you don't miss the deadline as it varies among brokers.
Note that if DF is trading at a premium to the NAV, it would make little sense to tender your shares because you would be getting a higher price on the market so long as the NAV remains the same on the retraction date.
Morrisan wrote: Thanks, AnEducator.
Can you explain the process around a retraction price, in a bit more detail? How does it work practically? Has Quadravest ever done this with DF? Appreciate it.