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Morningstar, Inc. Commentaries

CEF Update: News You Can Use

Jul 1, 2014
Click here to access CEF Update: News You Can Use

Share Offerings

H&Q Healthcare Investors (HQHand H&Q Life Sciences Investors (HQLboth completed rights offerings, which gave existing shareholders the option to purchase additional shares at a ratio of three-to-one. The Healthcare Investors fund raised $189 million, while the Life Sciences fund raised $70 million. We’re surprised to see these funds raise additional capital while the shares of both currently trade at discounts to net asset value. In general, we think it makes more sense for funds trading at a discount to take active measures to buy back shares rather than issue new ones. 

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Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.