NEW YORK, June 1, 2012 /PRNewswire/ -- Western
Investment LLC, a long-term stockholder of Macquarie Global
Infrastructure Total Return Fund Inc. (NYSE: MGU), today criticized
the Fund's Board of Directors for breaking its implied promise
to control the Fund's discount to net asset value, or NAV, and its
recent misleading statements and half-truths. Specifically,
in MGU's letter to stockholders dated May
18, 2012:
- The Board criticized Western Investment's proposal that the
Fund reduce its persistent and excessive NAV discount by conducting
tender offers or open-market share repurchases. The Board
claims these actions would increase Fund expenses, but conveniently
ignores the proven benefits to stockholders including possibly
increasing the NAV and earnings per share substantially in excess
of any increased expenses and increasing returns. In fact,
despite the persistent discount to NAV, the Fund has never
repurchased any of its shares.
- The Board claims the Fund's returns have been "very positive,"
yet chooses to show returns over only a short-term period
handpicked by the Board which followed a sharp and drastic decline
in the Fund's share price. The Board does not mention that
since inception, the Fund's returns have been abysmal, lagging all
similar funds and relevant indices. Since its initial
public offering in 2005, the price of the Fund's stock has
decreased from $25.00 to $16.61 as of May 31,
2012.
- The Board claims that the Fund's discount has been "steadily
narrowing." While the discount may have narrowed, it remains
excessive and continues to rank near the bottom of all U.S. listed
closed-end funds. We strongly believe the recent small
narrowing of the discount is likely due to Western Investment's
public disclosure of its investment in the Fund.
Unlike the members of the Board and management, who own a
minimal amount of shares of MGU, Western Investment is the largest
stockholder of MGU, owning 9.9% of MGU's outstanding shares.
Western Investment is an investor specializing in investing in
closed-end funds and has proven over many years to be an ethical
activist investor for all stockholders. Western Investment
has taken a stance in connection with 36 closed-end funds since
2004, with all activism situations resulting in significant
pro-stockholder action by the issuer. Western Investment is
proud of its public record, and proud of the role it has played in
creating value for stockholders. In every situation,
Western Investment's settlement has benefitted all stockholders
equally -- the opportunity to sell shares at a lower discount.
Western Investment has never accepted a benefit that was not
equally available to all stockholders.
Arthur D. Lipson, managing member
of Western Investment, stated, "As long-term stockholders in MGU,
we are extremely disappointed with this Board's continued failure
to act in the best interests of stockholders and its continued
retention of undemocratic election rules designed to entrench the
incumbent Board and eliminate the voice of stockholders, as well as
its latest efforts to hide its failures by manipulating the
data. We have long been concerned with the continued and
excessive discount to net asset value at which MGU trades, the
Board's commitment to deplorable corporate governance policies and
what we believe to be policies designed to maximize fees for
management rather than returns for stockholders."
Mr. Lipson continued, "We believe Fund stockholders need an
independent voice on the Board, someone who is focused on
protecting stockholders' investment in the Fund and on taking
action that will lead to maximum value for investors. We urge
stockholders not to be fooled by the Board's false and misleading
attacks. Vote on our GOLD proxy card for our truly
independent director and for the elimination of undemocratic
election rules in proposal 2. If elected, Western Investment's
highly qualified, independent director nominee will work on behalf
of all stockholders to maximize the value of stockholders'
investment in the Fund."
CONTACT: Arthur D. Lipson,
(801) 568-1400
SOURCE Western Investment LLC