I own shares in PWI and Option 1 is Retraction. Also could you comment on the company as well as a investment.
Split share corporations often trade at a discount to net asset value. Because of this, companies offer investors the chance to sell their shares back to the company once a year, to try and keep this discount from getting too large (if the discount is too big investors will simply sell the shares to the company and new buyers will arbitrage this to keep the price from dropping further). The current discount is 7.8%, so fairly wide, but with an indicated yield of 10.43% and the relatively small size of the fund we doubt retraction will be utilized much by investors, considering also its one-year return of 26.47%. Under these structures, dividends can be halted if net asset value drops too much. In 2023, one dividend was missed in November but then started again the next month. But it is always a risk with split shares. We do not like its small size or fees (0.75%). But we have no issue with its securities holdings, which are global utilities and power companies. If owned we would be OK holding but we would not want to initiate a position here.