The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Portfolio rationalization: PVML offers home for orphan equities

UK boutique warehouses and bulks up fund managers' troublesome unwanted shares, offering a return within three years

A universal problem facing fund managers is how to dispose in a cost-efficient way of underperforming and unmarketable stocks that clog up their portfolios. Ideally, they want to do this without making losses for their investors. At present, managers have little option but to dump the unwanted stock through a dealer – the problem being that the dealer has little incentive to get the best price for the stock. One UK boutique, however, has an answer. Progressive Value Management (PVML) takes the holdings from the fund manager at mid-market price, and puts them into a Guernsey-registered fund. In exchange for the holdings, PVML issues the fund manager with shares in the fund. It then sets a timetable of two to three years to liquidate the fund, returning the cash to investors as the stocks are sold.

"Often these stocks can be a significant proportion of a portfolio by number, but under 5% in terms of value. It's not just small and fledgling companies that have failed to grow. It can be larger companies whose market capitalization has decreased," explains Robert Legget, co-founder of PVML.

"It's therefore not in the interest of the fund managers to spend time evaluating these companies, attending AGMs and trying to bolster performance.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree