Utilico Emerging Markets Trust (LON:UEM) Interview with Charles Jillings, Portfolio Manager, re recent trip to Latin America. https://vimeo.com/londonbroadc...

New research from Edison on Henderson Far East Income (LON:HFEL) (I hold). https://cdn.janushenderson.com...

Summary " Henderson Far East Income (HFEL) has consistently delivered on its
objective to provide a rising dividend. However, like many investors,
HFEL’s managers overestimated the potential for a post-pandemic rebound
in China. The trust’s resultant overweight to Chinese consumer and other
cyclicals led to a fall in portfolio revenues and underperformance in the
financial year ended 31 August 2023 (FY23). With a view to improving
future returns, HFEL’s board has since indicated an increased willingness
to use reserves when necessary to support dividend payments, which it
did in FY23. This reduces the requirement to focus primarily on high
income names to fund dividend payments, giving lead manager Sat Duhra
scope to move into other areas of the market where he can acquire wellpriced value names offering performance and yield, or the prospect of
dividend growth over time. Duhra has been quick to reduce the trust’s
exposure to China and increase positions into well-priced value names in
India and Indonesia. Early signs suggest this repositioning is paying off -
HFEL outperformed the market in the six months to end March 2024."

Hello Charles, you have Henderson Opportunities Trust (LON:HOT) down 79%, but looking at Stockopedia chart that does not seem correct.

Thanks for the replies, much appreciated, I enjoyed reading them all. It's a good community of PIs on this board, long may it continue.

I hadn't realised there had been a change of policy at Henderson Far East Income (LON:HFEL). Interesting but I will stick with Schroder Oriental Income Fund (LON:SOI) for now.

I'm hopeful the progress at Schroder Real Estate Investment Trust (LON:SREI) continues as the dividend is worth it. I still say the market doesn't like Tritax EuroBox (LON:EBOX) but I have no evidence to back that up other than a widening discount.

Ken, good to hear your health issues are progressing, long may that continue. You have have helped me so much with my thinking on trusts and dividends, I appreciate that. Like others on this board, I wish you well.

SSB

fwiw, one or two thoughts....

My portfolio has done well recently, I need to update my spreadsheet to understand performance year to date but I can see that I'm up versus the closing balance back in December. with the exception of Primary Health Properties (LON:PHP), any losers I have in my portfolio are on small single digits. Pleasing but worrying at the same time! Mainly because I still have cash to invest but also because I'm always thinking something will go wrong. Perhaps I'm benefitting from cutting my losers more quickly ? May and June are always big dividend months so I'm optimistic.

Charles, you mentioned emerging markets recently. I thought the following podcast interview with the managers of BlackRock Frontiers Investment Trust (LON:BRFI) was good. Looking at my iPhone podcast app, there is the option to read the transcript of this interview but that option is unfortunately not available on this link. There is an interesting discussion at the start on the AIC promotion and relegation between frontier markets, emerging markets etc and the comment is made that this process is actually far more arbitrary than retail investors understand. Some good points made on the fact that EM countries are no longer pure resource plays and dependent on the US dollar. I d find myself asking why I would take the risk for a 4% dividend.

https://tinyurl.com/2f3netyv

Ken, thanks for posting on the REITs again. The interest rate cuts are not materialising which makes Loan to Debt percentages and debt financing all the more important. I hold Primary Health Properties (LON:PHP) which refuses to increase in value but still pays out a 7% dividend yield. And Schroder Real Estate Investment Trust (LON:SREI) which has come off lows in SP terms, also pays out a 7%+ dividend and still on a massive 30% discount to NAV. I'm a little reluctant to invest more in property as I think there are sectors with better prospects. I keep an eye on some of your favourites though - Alternative Income REIT (LON:AIRE) and Aew UK Reit (LON:AEWU). I recall being impressed by an interview with Laura Elkins of Aew UK Reit (LON:AEWU). If I recall correctly, there is an element of improving properties arather than just running them and therefore actively trying to increase the NAV.

Even on average days now, Japan trusts in general tend to do well (I follow Nippon Active Value Fund (LON:NAVF) and AVI Japan Opportunity Trust (LON:AJOT) although I own Japan as part of my holding in AVI Global Trust (LON:AGT)). In addition, the UK Smaller Companies and UK Equity Income Sectors also seem to be coming to life a little. I'm happy with my recent purchases so far.

I sold Henderson Far East Income (LON:HFEL) a while back. No point in getting a big dividend if the SP is constantly declining. I bought Schroder Oriental Income Fund (LON:SOI) instead and whilst a much lower dividend, it's less volatile which is something I prefer. Again, the sector in general seems to be doing better recently than in prior years.

Again, right click and open image in new tab to see the detail.

One final thought for now.... I bought a small stake in HgCapital Trust (LON:HGT) a few months back when it was trading at a 15% to 20% discount to NAV. At the time, I thought it was either clearly undervalued by the market (and therefore a good buying opportunity) or there was something clearly wrong with it and I just didn't understand that.  Discount has since closed to 6% and it seems my first thought was the correct one. Only issue is I didn't buy enough of it! Next time.... :-)  

Feedback welcome.

SSB

Having another look Odyssean Investment Trust (LON:OIT) after getting Q1 2024 update through by email. 

• Top 10 positions as % of NAV2
  
  Elementis Industrials 15.5 
• NCC 12.9
• Gooch &Housego 6.9
  Ascential 10.5
• Spire Healthcare 5.9
  Ascential 10.5 
• XP Power 8.7
• Xaar 7.4
• Dialight 5.7
  James Fisher 5.0
   Benchmark 4.8
• Total 83.3%

Video presentation is here 

Henderson Far East Income (LON:HFEL) ( I hold)Half year figures show an improved NAV performance and as Ken mentioned recently the share price has picked up. Link here to the fund manager's comments on the half year figures. https://www.janushenderson.com... The fund yields 10.78% and price/NAV at at par near enough. Dividends have grown at  5 year average of 2.30%. Only concern Div is only covered 0.55% but the board have committed to at least maintaining it.

I am a long term believer in emerging markets ( might have been a bit early on buying Blackrock Latin American Investment Trust (LON:BRLA) ). This article from Scottish Oriental is I think well argued.https://www.scottishoriental.c... I do not hold Scottish Oriental Smaller Companies Trust (LON:SST) .

Sorry that it’s late to be posting this info now as Henderson Far East Income (LON:HFEL) goes ex the next (modestly increased) 6.1p and 2.6% quarterly dividend tomorrow. 

What many might have missed is that  since Management  changes along with new investments approach, Henderson Far East Income (LON:HFEL) has recovered strongly at long last. So much so that it has gone from being the worst performer in the sector by far to THE best performer in the sector over 1 month, 6 months and year to date. 

It’s up 5.4% over 1 month, and next best abrdn Asian Income Fund (LON:AAIF) and Jpmorgan Asia Growth & Income (LON:JAGI) 3%. Over 6 months Henderson Far East Income (LON:HFEL) is up 12% and next bestabrdn Asian Income Fund (LON:AAIF) 10%. Year to date Henderson Far East Income (LON:HFEL) is up 8% and next best Jpmorgan Asia Growth & Income (LON:JAGI) 5.3%. 

Their latest factsheet is also positive about dividends and fwiw I think a cut which already a low risk, is now very unlikely. Here’s the link including the key text on page 3:-

https://cdn.janushenderson.com...

So the current yield is still 10.4% even after the recent share price and NAV gains. The yield was 11.5% when Henderson Far East Income (LON:HFEL) was first covered in posts here. It’s a less risky buy now than it was then as there’s evidence to show that their investment performance is improving. 

Because Henderson Far East Income (LON:HFEL) is still the worst performer over 1 year (ahead of investment policy changes) it’s quite likely that the recent improvement has gone unnoticed. 

Following up recent REIT posts, here are the gains for the following Trusts from their 1 year lows. IF/once fairly convinced about the case for buying any of them, and trying to narrow down the choices, there’s a case for the REITs that are still near their 1 year lows as they could play catch up. 

E.g Aew UK Reit (LON:AEWU) 1 year low was just last week and today it jumped over4%. 
 

It’s Schroder European Real Estate Investment Trust (LON:SERE) that’s at its 1 year low right now. 

Most of the others bottomed last Autumn. 

Here are the gains from those 1 year lows:-

TR Property Investment Trust (LON:TRY) 20%  Now 310p. Dividend 4.8%

Alternative Income REIT (LON:AIRE)  20% Now 67p.  Dividend 8.5% 

Tritax Big Box REIT (LON:BBOX)  20% Now 150p Dividend 4.9% 

Tritax EuroBox (LON:EBOX)  12% Now 51p Dividend 8.7% 

Schroder Real Estate Investment Trust (LON:SREI) 10% Now 45p, Dividend 7.5% 

Aew UK Reit (LON:AEWU)  6% with most of that gain from the low last week, today. Now 87p. Dividend 9.4% 

Schroder European Real Estate Investment Trust (LON:SERE) It’s at the 1 year low now.   Now 61p  Dividend 9.4% 

I see India Capital Growth Fund (LON:IGC) are seeking to merge with a Abrdn Indian fund: https://citywire.com/investmen...

Hydrogenone Capital Growth (LON:HGEN) -I hold. Research from Marten & Co-(Paid for) . I tend to agree that the fund is very undervalued and it is one of my holdings bought because I am a fan of Hydrogen rather than anything else. I have also invested in a small unquoted welsh Hydrogen car company Riversimple through crowd funding. Another one that may have to seek a merger or be taken over. I did email them asking what their thoughts on solving the discount were- but no reply. https://quoteddata.com/researc...

If your interested in Georgia Capital (LON:CGEO) this report on Capital Markets in Georgia might be of interest. Written byTBC Bank (LON:TBCG) a LSE listed bank in Georgia. https://tbccapital.ge/static/f...

These shows should be of interest…

We have two FREE events this week with something for everyone!

Starting off with Mello Investment Trusts and Funds today, Tuesday 23rd April, at 1pm.

1:00pm Emma Bird, Head of Investment Trust Research, Winterflood Securities presents “Discounts: Risk or Opportunity?”

1:30pm Company presentation by JPMorgan Asia Growth & Income plc

2:00pm Company presentation by Literacy Capital

2:30pm Company presentation by International Biotechnology Trust

3:00pm Andrew Latto presents Global Investment Returns 1900-2023

For more information, click here: https://melloevents.com/mitf-2...

Register for FREE here: https://us06web.zoom.us/webina...

Mello Results Special on Thursday 25th April at 1pm.

Programme:

1.00pm Company Presentation by Gelion plc

1:40pm Update from SIGnet

1:50pm Company Presentation by Team Internet

2:30pm Results Round Up

2:50pm Company Presentation by Journeo

3:30pm Results Round Up

3:50pm Company presentation TBC

4:20pm Company Presentation by Zinc Media

4:50pm Update from ShareSoc

5.00pm Company Presentation by accesso

5:40pm Results Round Up with Paul Scott

6,00pm Company presentation by The Property Franchise Group

For more information, click here: https://melloevents.com/mrs-25...

Register for FREE here: https://www.tickettailor.com/e...

This may be of interest given the recent discussion:

‘Complex’ trusts? How to answer Hargreaves’ test

Hopefully the URL works, if not - it is currently on the front page of Citywire.

cheers,

Hipgnosis Songs Fund (LON:SONG) Sold my holding this morning. Whilst higher bids might come I think there is a risk of it getting into a legal quagmire. So took the profit.

It’s a while since there have been posts on Investment Trust REITS. The hoped for share price gains haven’t happened yet thanks to some disappointing inflation figures here and in the US delaying the interest rate cuts that should increase the appeal and share prices  of REITS again.

While we wait for that upside, the disappointing lower share prices so far this year mean another chance to cash in on some big dividend yields. 

A stand out buy opportunity imo is Aew UK Reit (LON:AEWU). The previously narrow discount has widened to 17% and that widening has enhanced the share price weakness. Share price is down 17% to 84p this year. AND it’s now at a 3 year plus low too. The yield (AEWU was the only REIT that didn’t cut the dividend during the covid falls) is now 9.7%.

This is the best AEWU buy opportunity since I bought along with others in the sector late in 2020.  I locked in a 13% yield when buying at 63p. I post this not to brag (I buy duffs like we nearly all do) but to point out the attraction of locking in a 9.7% yield. I’ve already had around 50% of my stake back just from dividends. 

 Unless interest rates don’t come down, as in 2020 , there should again be significant share price gains ahead. Aew UK Reit (LON:AEWU) peaked at 130p. The dividend is barely covered  but AEWU up till now has coped with this via small asset sales usually above what they paid. 

Another I’ve held since 2020 Alternative Income REIT (LON:AIRE) also looks tempting. Discount is 19% . Share price 67p. It has held up better than AEWU so is not such an obvious bargain. It’s down 7% year to date and 2% over 1 year. Dividend yield is 8.7% and they increased it (but possibly only temporary increase) last November. 

Here’s the aic link for the UK Property Trusts. 

https://www.theaic.co.uk/aic/f...

There are also 2 REITS in the Commercial Property EUROPE sector I hold that look very tempting at current prices. They are Tritax EuroBox (LON:EBOX) (again!) and Schroder European Real Estate Investment Trust (LON:SERE. 
 

UK investors tend to focus on the UK REITS and perhaps miss spotting perhaps even better European focus bargains. 

Tritax EuroBox (LON:EBOX) 48p has fallen all the way back almost to THE low of last autumn.   It’s down 18% so far this year and down 23%  over 12 months. The dividend is 110% covered and the yield is 9%. Discount is huge at over 40%. EBOX used to trade at a premium to NAV so a good chunk  of the 65%  share price fall from  123p   peak is simply because of that approx 50% change from premium to 40% discount. 

Schroder European Real Estate Investment Trust (LON:SERE) 61p is another I’ve held since 2020 but unlike the others is now below my buy price (compensated by getting on for 4 years of big dividends including specials). Key reason for the share price fall is again that much wider discount. Discount is 41%! Dividend is 9.5%. It’s down 13% this year and 26% over 12 months and looks a bargain! 

Here’s the aic link for the Europe Property Trusts:-

https://www.theaic.co.uk/aic/f...

Contrary opinions etc very welcome. 

There is a Mello Trusts and Funds show this Tuesday at 1pm if any of you would like to watch and ask questions. It is completely free to join just register on the webpage  Mello Investment Trusts & Funds, Tuesday 23rd April 2024 – Mello Events

Here is the programme

1:00pm Emma Bird, Head of Investment Trust Research, Winterflood Securities

1:30pm Company presentation by JPMorgan Asia Growth & Income plc

2:00pm Company presentation by Literacy Capital

2:30pm Company presentation by International Biotechnology Trust

3:00pm Investment Trusts and Funds Panel

Hipgnosis Songs Fund (LON:SONG) See reports that Blackstone have made an increased offer. No surprise as I posted when I bought SONG I thought they would bid to hide the mess. It will be interesting to see where this ends up. Impressed with Robert Naylor- made some money in Round hill Music and now this. Hopefully he will become Chairman of Gresham House Energy Storage Fund (LON:GRID) and sort this out !

I bought 3 trusts this week. My timing wasn't brilliant but I am hampered by my work where buys and sells go through Compliance. The process often takes much longer than I would like but as a result of this, I tend to focus on long term value and dividends. Rome wasn't built in a day.

Damian Cannon mentioned Caledonia Investments (LON:CLDN) a week or so back. I already had a small holding but I wasn't thinking of adding to it until I saw the unaudited NAV update RNS on April 8th. Good update and a decent spread of assets across public companies, private capital and funds. The discount has moved around quite a lot over the last year and is towards the bottom of that range (ie: widest). 

As Damian mentioned, the discount is unlikely to close completely due to the large holding owned by the Cayzer family who use the trust as a way of creating multi-generational wealth. I am in good company! The first link is the unaudited NAV RNS and the second link is the strategy outlined on the Caledonia web site. I hope this is a long-term holding. 

https://tinyurl.com/57w6sab2

https://tinyurl.com/mrxuuytw

I also added to my holding in AVI Global Trust (LON:AGT) which focuses on family run companies, private equity trusts and Japanese smaller caps. The discount on the trust is around 8% but I recently read that the discount to the underlying holdings is actually nearer 40% (much the same calculation as Migo Opportunities Trust (LON:MIGO) and TR Property Investment Trust (LON:TRY)). This recent IC interview with the trust manager is a good explanation of what the trust offers. The important point around value not becoming obsolete is key. I delayed on clicking on 'buy' for this because the SP has increased over most time periods but this has been due to the strength of the underlying holdings rather than any significant reduction in the discount. 

https://tinyurl.com/398s5c3n

I liked the 2 proposed buys from Andrew McHattie discussed in the final 8 minutes of the Money Makers podcast of 23 March: Aberforth Smaller Companies Trust (LON:ASL) and BBGI Global Infrastructure SA (LON:BBGI). He was asked which trusts he likes the look of given we were approaching the end of the tax year when the interview was conducted. He had a list of 6 but only mentioned these two.

For BBGI Global Infrastructure SA (LON:BBGI), this Kepler report is useful. In summary, mkt cap of 930m, NAV of 1bn and so trading at a discount of 11%. Yield of 6%. I need to do more research on this one.

https://tinyurl.com/2ur3vvfb

Assets held by BBGI Global Infrastructure SA (LON:BBGI) are listed on page 3 of the 2023 interim report. And importantly, valuation methodology confirmed on pages 19 to 24.

https://tinyurl.com/mrxwpu4r

I also liked the following Kepler article on UK small caps.

https://tinyurl.com/2cysxfhn

I went for Aberforth Smaller Companies Trust (LON:ASL) because of the >1bn mkt cap. Wealth mgt companies should be more attracted to something like Aberforth Smaller Companies Trust (LON:ASL) than the smaller investment trusts as they can own a decent portion and it will move the dial for them.

The top 10 holdings get good ratings from Stockopedia (although Wincanton (LON:WIN) is currently in the process of being taken over).

Unfortunately, the remainder of the ISA is likely to go into TR25 gilt which will get me a return of sorts (depending on inflation). But it will mean no cash sitting idle in my ISA which I like.

SSB

My China correspondent has been in touch to share latest news from their point of view. Current snapshot appears to be continuing negativity and concern over pro-Russia/anti Western rhetoric levels. 

Property sector not really getting any significant support - more a case of trying to manage the continuing fall out so that the regional/provincial governments don't come under too much pressure. Still lots of empty properties/unfinished developments.

Youth unemployment is a massive and an ongoing concern. Something needs to be done but nothing is - so controls remain extremely tight, especially on all things Western, internet access, etc. Pretty much as you would expect.

There is a growing sense that Xi will look to increase production and export his problems. China likely to push US/EU to the limit and cry foul every time we protest at 'dumping'. WTO will be invoked, etc. Belief is West will back down or current leaders will lose elections and new leaders will take time to assess/action. Seen as Western weakness against long term Chinese thinking. 

EV car exports will be pushed hard. Even with 100% tariffs they will be great value (apparently). Joint ventures in Europe, like Japanese did years ago, may be the model. Because they leapt straight past trying to compete in the ICE car market they have a huge advantage here, even before scale benefits are taken into account (like Tesla v the rest). And the scale of their market is beyond our comprehension. A neighbour of mine worked in the Midlands car industry for many years. He commented the other day that even in the 70's the UK needed to produce 2million cars a year to maintain a competitive scale. My, how long ago those levels of production seem. (2023 SMMT figures show c900,000  cars produced in the UK with over 78% exported).

Also increasingly aggressive/belligerent tone in the media. Desire to break dollar trading hegemony. Word is Russia, China, etc have been buying lots more gold to shift balance of reserves from USD. This can probably be verified or otherwise elsewhere. Could this move to include a re-evaluation of their stance on Taiwan? Or just more assertive/disruptive behaviour towards neighbours in South China Seas? Implementation of their ownership of the 'Seven - dot' claimed territory. RT available on TV in China - how I miss it!

He also commented that UK Mainstream media agonise over every Inflation/ONS/OBR pronouncement each month, debating every 0.1% move in this and that but we pay no attention to, or make little allowance for, major seasonal events in China, like the virtual 2 week shut down for their New Year return to rural heartlands. I'd just say the benefits of 24 hour rolling news and economic banalysis are over rated.

Overall not inclined to pick up any of the China Funds following this update. I think Ken has a better strategy with his focus on Mining/Commodities. And Vietnam. Hope some of this is useful. 

Gresham House Energy Storage Fund (LON:GRID) I hold this in my wife's ISA- bought for the "yield". Since they have now cancelled the dividend so removed the main objective of providing income the logical step is to have the company wound up or sold. The board and managers hae failed in their prime objective. If anyone else holds would be interested in views. I have contacted the company through their PR firm- not satisfactory but was the only way to immediately contact them.  I had previously emailed them expressing concerns about cutting the dividend. I had thought maybe it would be kept at some level as they had engaged in a share buy back- which has also now been stopped. 

Those of us convinced of the strong investment case for Vietnam have perhaps underplayed the corruption issue. It was the key cause of the big 30% Vietnam market fall when the big banking fraud news surfaced in the Autumn of 2022. That fall turned out to be a very good buy opportunity. 

The Vietnam market has been very weak recently, following the news of the ruthless way the Government are dealing with it. These falls might continue short term but imo are unlikely to last as long or be anywhere near as big as they were in 2022. That’s because this time it’s the tackling of the issue that’s behind the falls and not the corruption itself. 

Vietnam is 77th on the World corruption index out of 180 Countries and India is according to that  index less corrupt than India…on a PE of 24 (which is even higher than US) compared with 14 for Vietnam.  

VOF did cover this in their last Results, albeit rather out of the way! But their conclusion is also reassuring. Here’s the relevant section:-

“On-going anti-corruption efforts: The high-profile arrests of business leaders and senior political figures in 2022 and the early part of 2023 triggered a series of perhaps unintended consequences, both in the stock market and for the perception of Vietnam amongst some in the international investor community, as investors do not welcome uncertainty. Fortunately, there have not been any further significant arrests of business leaders, and investigation continues with the case involving former property tycoon, Madame Truong My Lan of Van Thinh Phat and Saigon Commercial Bank who is now accused of embezzling USD12.5 billion according to state investigators.

Overall - and long-term - we view that these investigations, arrests, and punishments that are occurring will be net positive for the country, and for the market, firmly sending out a message that in Vietnam, wrong-doing will not be tolerated. Nevertheless, in the short-term, these events can have short-lived but sharp impacts on the market.”

Glad to see Hipgnosis Songs Fund (LON:SONG) has been bid for, rather as expected.

I know it is a lost cause but does anyone with Investment Trust expertise have any idea of what the assets at Asian Energy Impact Trust (LON:AEIP) might be worth following the managed wind down and asset sale recently announced?  The share price has collapsed further in the last few days and I note from a March analyst report (Shore) that the debt held by the Indian solar project which has caused the meltdown exceeds the NAV of Asian Energy Impact Trust (LON:AEIP) in total.  Unless the debt is assumed by a potential buyer (if any out there) does this imply shareholders will get nothing if it has to be repaid?

Positive news for Vietnam:

HANOI, April 16 -

Apple Inc. CEO Tim Cook said on Tuesday in Hanoi the U.S. tech giant wanted to boost its investment in Vietnam, state media reported.

Cook made the statement at a meeting with Vietnamese Prime Minister Pham Minh Chinh during his visit to Vietnam, a key manufacturing hub for Apple.

Separately, in a statement released on Monday on its website, Apple said it would increase its spending on suppliers in Vietnam, where it has created some 200,000 jobs.

Vietnam will set up a working group to support Apple's investment in the country, Prime Minister Pham Minh Chinh told Cook during the meeting.

Apple did not respond to a request for additional comments about its planned spending.

Cook arrived in Hanoi on Monday for the two-day visit during which he met suppliers, students, content creators and users of Apple products.

(Reporting by Khanh Vu and Francesco Guarascio; Editing by Kanupriya Kapoor)

fwiw, I posted the following on Law Debenture (LON:LWDB) manager Laura Foll back on the 10 March over on Ken's BARG site. Maybe I need to listen to the following again:

IC interview with Laura Foll of Janus Henderson. Laura is involved in 3 investment trusts:

Law Debenture (LON:LWDB)

Lowland Investment (LON:LWI)

Henderson Smaller Companies Investment Trust (LON:HSL)

Enjoyable listen, my notes below.

https://tinyurl.com/pyv5uutw

# Law Debenture (LON:LWDB) just published results. Very different trust because there is an embedded operating business which provides approx 1/3 of operating margin (and therefore good dividends). This enables the trust part of the investment vehicle to generate a lower risk yield.

# The point at which a company cuts a dividend can be an interesting time to take a look because it could be a recovery share eg: Marks and Spencer (LON:MKS) and Rolls-Royce Holdings (LON:RR.).

# Babcock International (LON:BAB) specialist defence market work, benefitting from geo-political tailwinds.

# Rolls-Royce Holdings (LON:RR.) now successfully taking costs out. SP increase has been driven by earnings + free cash flow upgrades rather than re-ratings.

# UK dividend “addiction” mentioned by IC interviewer. LF response is UK market has shifted to be more like the US post-Covid ie: total return.

# Not sure what LF means when she says 45% payout ratio for UK market now versus 70% pre-covid ?

# Many UK dividends have been re-based.

# Financials are driving a lot of dividends in the UK: Beazley (LON:BEZ) is one of the leading insurance companies in cyber security with good returns in the US. 3% ordinary dividend is not much to get excited by but there should be either a buyback or special dividend. Barclays (LON:BARC) is returning 50% of it's market cap (I'm sure I heard this right).

# Red flags on income stocks: eg GSK (LON:GSK) couple of years back.

# Marshalls (LON:MSLH) Profit Before Tax down 50% but the payout ratio it now operates makes LF’s job easier because she does not have to consider it might happen,

# Trust structure is an advantage over open ended funds. SSB: we know this!

# 2 potential valuation discounts being applied to UK market: is it structural ie: is the UK market broken ? Or is it cyclical ? SSB: hopefully the latter!

# De-equitization of UK market is “shocking”. 10% of UK operating companies went last year! Policy required to reverse this trend.

# Law Debenture (LON:LWDB) holds 88% UK shares which is historically high.

# Brick manufacturers could come good if/when interest rates are cut.

# Law Debenture (LON:LWDB) holds 150 stocks, Lowland Investment (LON:LWI) holds 100 stocks and Henderson Smaller Companies Investment Trust (LON:HSL) holds 80 stocks.

# LF wary of themes. Instead, she looks for diversification. Some investors tells Janus Henderson they hold one investment because it is an easy, long-term approach for total return. Therefore, LF looks to make sure there is diversification and share prices don’t move in synch with one another.

# Takeover valuations and prices are different between peer to peer versus private equity. The latter tend to generate much lower valuations and therefore also lower takeover prices with private equity knowing certain fund managers are in outflow, need the cash and will vote for the takeovers.

# Valuation (NAV) matters. SPs just move around. SSB: we knew this as well but always good to be reminded of it.

Hello - have we covered the India Capital Growth Fund (LON:IGC) here and what happened to make it drop so much a few weeks back.

Apologies if we have, but am interested in researching it a bit more to see if it offers decent value.

Schroder UK Mid Cap Fund (LON:SCP) looks interesting at current levels if you would like exposure to UK mid-caps. Looking at the top ten there are some familiar names present with all of them being companies that I'd be happy to own directly (and some of which I already do): 

Holding name                        %
Inchcape PLC                        4.3
4imprint Group PLC         4.0
Man Group PLC                  3.9
Computacenter PLC        3.8
Dunelm Group PLC           3.6
Spectris PLC                          3.6
Cranswick PLC                    3.6
Telecom Plus PLC              3.5
QinetiQ Group PLC         3.2
Grafton Group PLC         3.2

Right now the discount is hovering around 15% which is pretty much the bottom of the channel seen since the pandemic. If the UK economy, and stock market, is going to recover this year as interest rates normalise then this seems like a decent place to park some funds.

I thought the list of most bought investment trusts (listen from 15 minutes) from Jan 1^st to Mar 15^th in the ii podcast link below was interesting. Focus is very much on income. It is not said in the podcast but I am pretty sure this list is in order of most popular first.

I have provided the HL link for each (I know this is not the official site for investment trusts but the way the charts for each trust are displayed makes it very obvious whether a trust is a bargain at the moment ie: is a trust trading at a larger discount to NAV than the previous 12 months).

fwiw, I have also provided my view on each.

Alliance Trust (LON:ATST). AIC sector: Global. Up +60% over 5 years holding 60% US tech names and 10% Japan. 

https://tinyurl.com/3zcj9twa

City of London Investment Trust (LON:CTY). AIC sector: UK Equity Income. Trading on a rare discount. Almost 5% yield. But I prefer Edinburgh Investment Trust (LON:EDIN) for the higher quality holdings. 

https://tinyurl.com/bduycstu

Scottish Mortgage Investment Trust (LON:SMT). AIC sector: Global. I am thinking of buying small amounts of this when I buy larger holdings in dividend paying shares and trusts. And maybe there is another opportunity to get this at a reasonable discount (currently 10%). I would have to revisit where Scottish Mortgage Investment Trust (LON:SMT) are with their private holdings versus the mandate but I do know they value 100% of those holdings every 3 months. This trust's SP is responsive to interest rates. Got to be said: you don't buy this for dividend income! 

https://tinyurl.com/uhjr66eu

F&C Investment Trust (LON:FCIT). AIC sector: Global. Similar to Alliance Trust (LON:ATST). Mkt cap of 6bn! Didn't know that. But not a bargain and paying a yield of only 1.5%. Move on.

https://tinyurl.com/5yb3r65v

Jpmorgan Global Growth & Income (LON:JGGI). AIC sector: Global Equity Income. I like this trust. Top 10 holdings account for approx 45%. Good conviction. But 70% US names and 28% tech makes me nervous. I can't buy it at the moment. But I may buy it one day! 

https://tinyurl.com/msk4bp56

Greencoat UK Wind (LON:UKW). AIC sector: Renewable Energy Infrastructure. Bounced from a 20% discount to NAV up to a 16% discount. 7% yield. AIC web site says 8% dividend growth over the last 5 years. I would have to do more research on dividend cover, revenue reserves and Loan to Value but I do like this trust and have thought of buying it a number of times. Presumably lower interest rates would help the valuation.

https://tinyurl.com/5mxywn4h

Murray International Trust (LON:MYI). AIC sector: Global Equity Income. Bruce Stout is the long term manager. But he is retiring. He came across as a safe pair hand when I heard him speak at the AIC Conference last year. Putting that to one side, I quite like this trust just for the yield. Only 4.7% but the AIC site says the cover is 1.06 times. US is 25% of the trust but the remainder is spread across multiple countries. Also, I don't see any high PE names from the US in the top 10. Tech is 23% of the trust but I notice semiconductors is a recurring theme which I think is a smart place to be. Hardware will come and go but the underlying tech and software will remain commercially relevant. Current discount of 12% versus a 12 month average of 5%. I could quite happily buy this next week. Any thoughts ?

https://tinyurl.com/5bvesrke

Personal Assets Trust (LON:PNL). AIC sector: Flexible Investment. "Flexible" is a strange sector as it covers a multitude of different asset classes. I hold Capital Gearing Trust (LON:CGT) as I always thought Peter Spiller spoke a lot of sense and bond should go up in price as inflation and interest rates come down. But it has been a poor performer. And so we come to Personal Assets Trust (LON:PNL): it is the type of trust I would buy if I wanted to go travelling again for a year and I didn't want to look at my account every few days. I know that very little would happen and the managers are focused on keeping the SP positive versus inflation. But it's not for me here and now. There may come a time though if I fancy a bit of sun on my back :-) 

https://tinyurl.com/4ke89pw9

Renewables Infrastructure (LON:TRIG). AIC sector: Renewable Energy Infrastructure. I bought a small holdings in Renewables Infrastructure (LON:TRIG) last year. It's been disappointing but again that is probably down to inflation (and interest rates) not coming down quickly enough. A yield of 7% is worth having whilst I wait. But I have just noticed every "performance" stat is negative. These exclude dividends of course but disappointing all the same versus say a gilt or even an interest paying one year cash account.

https://tinyurl.com/4rzjdb4p

Edinburgh Investment Trust (LON:EDIN). AIC sector: UK Equity Income. I bought back in 2020/21 when James DeUpaugh took over the mgt of this trust from Mark Barnett so I am biased. One of my larger holdings. It's done well. I was thinking of switching to City of London Investment Trust (LON:CTY) but prefer the underlying names in Edinburgh Investment Trust (LON:EDIN). 

https://tinyurl.com/3a9d3c8h

Podcast link below. For the above list, listen from 15 minutes.

https://tinyurl.com/2v7u333b

SSB

And Investment Week are also on the case: https://www.linkedin.com/posts...

without wishing to claim any credit, after I posted on LinkedIn the editor there asked to connect with me. Just shows the way the world works: their coverage would have come from city grandees talking off the record 20 years ago, now it is much more reflective of the experience of PIs as reported through social media

Cannot understand why Supermarket Income REIT (LON:SUPR) is down nearly 6% this morning. Most recent announcement was related to scrip dividend alternative but surely announcing payment of dividend in cash can’t have this negative effect? Current yield is over 8% and pretty much covered I believe.  Supermarkets  aren’t going anywhere and will  surely continue to pay rents - they even stayed open in the pandemic! Yet Supermarket Income REIT (LON:SUPR) is on a discount to NAV of over 16%. Any thoughts would be appreciated.

AJ Bell (LON:AJB) Just read this in City wire. I hold both shars and use AJ Bell for my SIPP and ISA's for myself and wife. I have emailed them asking for comments and advised them if this continues I will be looking at other platforms. I do not want to have to call in to deal- why should I when these are freely traded listed securities.

"AJ Bell has added to the outcry over retail brokers restricting investors from buying out-of-favour investment companies on the grounds that they are poor value.

The share-dealing platform has confirmed to Citywire that Chrysalis Investments (CHRY) and Bluefield Solar Income (BSIF) were among listed funds where online trading had been stopped after they failed fair value assessments conducted on behalf of the broker."

Just caught up on a Feb 2024 BlackRock Frontiers Investment Trust (LON:BRFI) presentation. I hold. It does not aim to be an income fund, but is yielding over 4.0% due to strong earnings growth in the underlying portfolio. It gives exposure to countries which no other fund does- many do not have a ETF either. 

Below is screen grab of the geographic split.

The presentation can be found here.

School night so very short post from me: lots of buying by directors and those associated with directors in investment trusts today.... AVI Global Trust (LON:AGT), Renewables Infrastructure (LON:TRIG) , Nippon Active Value Fund (LON:NAVF) , CC Japan Income and Growth Trust (LON:CCJI) , TR Property Investment Trust (LON:TRY) and Blackrock Throgmorton Trust (LON:THRG) . No doubt related to new ISA funds for the 24/25 tax year.

Anyone any experience /thoughts on £CVCG.  Exposed to floating rate corporate credit in US & Europe so falling interest rates may impact returns however earning yield in the teens according to their corporate video and annual yield 8% + paid quarterly. Seems to have decent ownership within stockapedia community and directors steadily by small chunks. Never going to multibag but yield looks interesting

Below is a post I did last November aimed at any newcomers to Investment Trusts and with suggestions and examples of how to create a balanced portfolio of around 15 Regions or Countries or sectors. So the post below might still be useful for any readers of the posts on this thread wondering where to start! 

The Trusts highlighted were not tips. They were Trusts I thought good value at that time but the suggestion was also to look at the other Trusts in that sector or Region. 

November 2023 was an excellent time to build that portfolio. So none of the Trusts covered have fallen (or given sleepless nights) but quite a few are little changed from those prices last November. So those and others in their sectors not yet bouncing are still worth checking out.  The biggest winners are up around 30%.

I’ve added the prices at the close yesterday to compare with the price last November. 

Here’s that November 2023 post:-

“Using Investment Trusts to invest all round the World, as well as UK.

This is very brief on detail and just as a starting point.

I use Investment Trusts to invest all round the World and to cash in on far better performing markets and not only lousy for too long UK.

Stockopedia figures for Investment Trusts are mostly irrelevant/inappropriate for Trusts and only of use for shares. And Stocko figures exclude must knows like NAV and discounts to NAV etc.

The MUST place for info is the official Investment Trust website aic. Trustnet is also very good.

This link link is the aic link for UK Commercial Property Trusts where there are some exceptional bargains on big discounts and paying big dividends.

https://www.theaic.co.uk/aic/f...

Just click on each individual Trust for a wealth of information. And from the above link it’s easy to access all the aic sectors.

e.g this link for the ASIA PACIFIC sector and Pacific Horizon Investment Trust (LON:PHI) and all the other Trusts in that sector. 

These are Trusts I like (and hold all except 2) in each of the following sectors. Best obviously to check each Trust in the sector for yourselves.

ASIA PACIFIC Pacific Horizon Investment Trust (LON:PHI) £5.35 (Now April 8th 2024 £5.96 and up about 12%) 

BIOTECH International Biotechnology Trust (LON:IBT) £5.74 (Now £6.38) 

COMMODITIES BlackRock World Mining Trust (LON:BRWM) £5.40 (Now also £5.40 but it dipped to £4.94 recently).

COUNTRY SPECIALIST. VietNam Holding (LON:VNH) £2.87  ( Now  £3.80 and up over 30%) 

and VinaCapital Vietnam Opportunity Fund (LON:VOF) £4.48 .(Now £4.69…..so way underperforming VietNam Holding (LON:VNH) for now. Plenty of posts on this thread on why). 

VIETNAM LOOKS A GREAT INVESTMENT TRUST OPPORTUNITY SECTOR for this rapidly growing Country. Current discounts likely to go to premiums when Vietnam becomes more widely understood and is upgraded to full Emerging Market status and not just current frontier market. Make sure you read the very good Monthly Manager updates!

EUROPE Fidelity European Trust (LON:FEV) £3.55 (Now £3.93). 

GLOBAL Monks Investment Trust (LON:MNKS) £9.45 (Now £11.42)  and Scottish Mortgage Investment Trust (LON:SMT) £6.87 (Now up 25% to £8.62)

JAPAN Fidelity Japan Trust (LON:FJV) £1.63 (Now £1.78). 

PROPERTY UK COMMERCIAL.

Loads to look at. Aew UK Reit (LON:AEWU) 95p  (Now still 95p) has a great record. Supermarket Income REIT (LON:SUPR) 80p  (Now 76p) was ludicrously undervalued until big jump at end of last week.Now just very cheap instead of bonkers too cheap!

PROPERTY EUROPE COMMERCIAL

Tritax EuroBox (LON:EBOX)  51p  Now also 51p) stands out. It rose 12% on Thursday and Friday as was way oversold. Still very cheap.

TECHNOLOGY

Polar Capital Technology Trust (LON:PCT)  £22.70  (Now up 30% at £8.62p) 

and Allianz Technology Trust(LON:ATT) £2.60 (Now also up 30% £3.52p).

UK.

There are SO many to choose from in the 4 UK sectors. Check out the Top 10 holdings for each Trust. I prefer those holding shares I like too (especially so if holding small companies covered in daily Small Company updates here) and also Trusts with conviction portfolios with a high percentage in their Top 10.

The cautious might want to check out the aic “dividend heroes.” These are Trusts increasing their dividends for multiple years. e.g City of London Investment Trust (LON:CTY) £3.86 with increase for 57 years in a row! (Now £4.05p) 

And Merchants Trust (LON:MRCH) £5.07 (Now £5.32p).

Happy hunting! Remember Investment Trusts are currently on the highest discounts to NAV for many years. I.e There are a lot of bargains right now.” 

Purchased AVI Global Trust (LON:AGT) today- I have looked at this for a few months. Focussing on under valued assets is a strategy I like at the moment. Long term performance has been good and they currently hold some interesting situations in top 10- Princess Private Equity Holding (LON:PEY) Hipgnosis Songs Fund (LON:SONG) Patheon Nv (NYQ:PTHN^I17) . News Corp (NSQ:NWS) they reckon is well undervalued and have a holding in D'leteren which looks an interesting play on a vehicle glass repair and replacement company.  

I also hold SONG directly- the situation has to be resolved in my opinion by a takeover by Managers/Blackrock. Or else it could get very messy.

This is the reason  I buy trusts as a part of our portfolio's- they have exposure to companies I could not hold or research as well as they can do.

Latest GT fact sheet is here.

Charles and Donald.

I’ve had a look at ADVFN bb for Amedeo Air Four Plus (LON:AA4) and Chrysalis Investments (LON:CHRY) to se that now AJ Bell are refusing to let their clients buy some Investment Trusts including Chrysalis Investments (LON:CHRY) and Amedeo Air Four Plus (LON:AA4. I hold both of them. 

This nonsense needs to be nipped in the bud NOW! Otherwise it’s going to get to the stage where ordinary investors give up on Investment Trusts!

As you both have direct experience working in the sector could one or both of you or anyone else PLEASE contact aic asap about this. Also the likes of Jonathan Davis/Money Makers. He might decide it merits coverage in their weekly podcasts. 

I tried but both emails were returned as undeliverable and right now I just haven’t the time for health reasons to get in to a possible series of emails with aic so I’m not going to try again. 

Feel free to use and send as much of the  content of my post about this as you want to after Hargreaves refused to let me buy DG19.  I’ve pasted that post below. It only needs these latest examples added to it. 

“ This is scandalous imo.

I want to buy Digital 9 Infrastructure (LON:DGI9) but can’t because Hargreaves Lansdown insist on the investor passing an examination first, and for reasons I can’t fathom, I’ve failed on one question.

It’s sheer stupidity that I can buy a hopeless share at big risk of going bust like Superdry (LON:SDRY) but can’t buy a pooled Investment like DG19 without this farcical test. Pointing out that I was a very experienced investor in Investment Trusts fell on deaf ears.

This needs exposing. Nonsense like this puts small investors off Investment Trusts. Trusts are already finding it hard to get new issues away and there are ever fewer Trusts and if this continues there will be fewer investing in those left.

Is it worth notifying DG19 Management as this is the last thing they will want surely?

Also perhaps getting aic involved too? And the likes of Jonathan Davis? 

Below is the unnecessary and often irrelevant info sheet Hargreaves provide ahead of the questionnaire. Much of.it is irrelevant gobbledygook!

“Why are some investments complex?

Infrequent opportunities to sell or high exit charges: Complex investments can often be difficult or impossible to buy or sell. Some may have dealing restrictions; for instance you may only be able to deal monthly or less frequently. For other investments which have specified maturity or redemption dates, investors may be unable to sell their investment during the life of the product meaning it can be difficult to gain access to your capital before maturity. Where you can sell, there may be high charges for early redemption.

Prices not publicly available: The price of some investments are not publically available or published regularly, or they may be in a currency in which investors cannot deal and could potentially be subject to additional costs when trading.

Where an investment can only be traded with one counterparty – for example the issuer of derivatives that an ETC/ETN is using to track the price of an asset – investors may be reliant on that counterparty offering a fair and correct price.

The investment is a derivative or it embeds a derivative: Some complex investments do not hold assets. Instead they use complex derivatives to match the return of an underlying investment or index. Derivatives carry a number of risks including magnifying the price movement of the underlying investment. There may also be extra costs to the investor through 'roll over' options. This is where derivatives held by the complex investment expire and new ones are bought.

Should the issuer of a derivative become insolvent, investors could lose their entire investment regardless of the performance of the underlying asset that the derivative is tracking. This is known as counterparty risk. This loss is unlikely to be covered under the Financial Service Compensation Scheme (FSCS) and investors may not be able to complain to the Financial Ombudsman Service (FOS).

Convertible risk: Issuers may have the right to forcibly convert from one type of investment to another, for example from a bond or preference share, to an ordinary share. This may be done at a time which is not favourable for investors. The price of a convertible investment is linked to the price of the investment into which it could be converted and may move sharply around the conversion dates. It is also likely investors in convertible shares will be converted into an investment ranking lower in the order of priority for repayment should the issuer go into administration.

Limited or very complicated product information: An investment can often be complex due to a lack of information regarding its structure and risks. Often where details are provided, they may be very complex as they are written with professional investors in mind.”

Here’s the question I apparently got wrong. What IS the correct answer?

“Complex investments can carry counterparty risk. Which of the following is the most accurate description of counterparty risk.

1The loss of money due to the default (insolvency) of the derivative issuer.

OR

2 loss of money due to rolling over future contracts.

OR

3. inability to sell an investment on a stock marketSent from my iPad.”

They let me retry 3 times so I gave a different answer and failed again. The third time I gave the only answer left and still failed!

And finally here’s why I failed:-

“Unfortunately you can't continue

Based on your answers you are unable to buy general complex investments

You may revisit the key risk information section and retake the test, or exit to return to your portfolio overview.

The questions you answered incorrectly are:

• Which of the following are possible risks of investing in complex investments?
• Complex investments can carry counterparty risk. Which of the following is the most accurate description of counterparty risk?

So I retook it and gave a different answer but failed again. They let me retake it again so I gave the only other answer left but STILL failed!!

And as a result of all this nonsense I can’t buy DG19!”

Inspired by a couple of comments on the ever excellent Money Makers podcast I wrote a piece on sub stack about corporate governance in the IT sector and why directors need to focus on retail investors. Please read, share, comment etc. I think we need much more pressure on boards to merge, cut costs and, if persistent discounts cannot be eradicated and ETFs offer a comparable alternative, wind the things up. Just because a manager raises money once doesn’t give them the right to a lifetime annuity in the form of annual fees.
https://open.substack.com/pub/...

Final one that seems interesting to me is RIT Capital Partners (LON:RCP) given its long-term track record and recent fall to a 30% discount to NAV. Investor uncertainty isn't unreasonable given the wide range of investments held by the fund but the board seem to have plans to address the situation: https://quoteddata.com/2024/03...

So this seems like an interesting special situation which should recover as private investments are reduced and share buybacks continue.

Another one that looks interesting is Henderson Smaller Companies Investment Trust (LON:HSL) which focuses on shares outside the FTSE100. So a fairly wide pool to select from which ensures almost no overlap with my direct holdings. The principal attraction here is the unusually wide discount of 15% to NAV which feels to me unwarranted. You're also getting a yield above 3% which is helpful but not sufficient to make this an income investment.

Top ten holdings are:

Decent full year trading update from Caledonia Investments (LON:CLDN) today with NAV up 7.4% over the year. I rather like this trust as it's really the Cayzer family investment vehicle which explains the 57 years of dividend growth. What's also attractive is the near 40% discount to NAV despite the portfolio successfully investing in three separate pools: Public companies, Private capital and Funds. Unfortunately the large holding of the Cayzer family means that scope for buybacks is limited but beyond that I like the approach being taken by the investment managers.

Wishing you well Ken !!

First time i've dipped into this monthly thread and must say its very good, with some top table posters contributing, so many thanks Charles for the effort in setting it up and keeping the interest going.

I'm gradually switching out of single stocks into shaping an 100%  investment trust portfolio moving forward.

I'm a way better investor than when I started but equally I don't year on year do much better than the top line fund managers.

As such after being in the game for twenty years I'm thinking its time to accept I'm not going to be one of the five per cent high flying private investors but if I can put together a trust portfolio that chugs along at 10-15% per annum I will be more than happy.

The intention is to rebalance monthly and it should mean that rather 15-20 hours of research per week I can decrease it substancially freeing up more time to do other things as I head to late 50's and becoming aware more of the time clock beginning to run down.

On a final note Ken I remember when the Mike Walters site was near the end you were having health problems so I really wish you all the best and hope the horrible sepsis can finally be knocked on the head once and for all.

Regards Andy

Allianz Technology Trust (LON:ATT) Interesting presentation via ShareSoc about this trust. https://youtu.be/iu-4Q7onaoQ?s...

Not a trust I have looked into but will now.

Thanks to Charles and Ken for responding on my post from last weekend, always good to hear other people's views. Unfortunately, unless it's a quick post, I only get to do proper reading and writing at the weekend. Work and family keep me busy and I am always behind on my investments. At some point, I will spend more time but that is unlikely to be until I go part-time!

Charles, I've come to the conclusion that a small buys into Scottish Mortgage Investment Trust (LON:SMT) or Polar Capital Technology Trust (LON:PCT) when I make larger purchases into value and dividend paying trusts may be the way to try to get some exposure (much smaller than my value and dividend paying holdings it has to be said).

Ken, thanks for your post on the resource sector, much appreciated. I see BlackRock World Mining Trust (LON:BRWM) is up 8% over the last month. I didn't cut my holding when the price drifted last year so nice to see it recover a little. The dividends over the past few years have been great. My only concern is the report in the WSJ regarding the likely sale by the Norway Sovereign Wealth Fund of their stake in Rio Tinto (LON:RIO). If only one fund selling then okay, no dramas. But if there is pressure on multiple funds to do this then I may take more notice. We will see.

I thought the following was a good summary of the Tritax Big Box REIT (LON:BBOX) acquisition of UK Commercial Property REIT (LON:UKCM). I seems that maybe the price is a little on the low side although it will be interesting to see if Tritax Big Box REIT (LON:BBOX) can get good sell on prices for the 39% of 'non-logistics' assets (retail, offices, hotels) that are part of the UK Commercial Property REIT (LON:UKCM) NAV.

https://tinyurl.com/2s45fkds

I agree with Lincs on BBGI Global Infrastructure SA (LON:BBGI). It looks a good trust to pick up at a 10% discount. All of the assets are operational. I think the following link is the same as produced in Lincs' post.

https://tinyurl.com/5x6j5pbj

AVI Global Trust (LON:AGT) double discount stands at 44% according to this Kepler article. I own the trust and would like to add on weakness. It is a pure value play invested in private equity, Japan and family owned businesses if I remember correctly. Joe Bauernfreund comes across well and has also been buying shares in both AVI Global Trust (LON:AGT) and AVI Japan Opportunity Trust (LON:AJOT).

https://tinyurl.com/bdeu2apm

I never know what to make of the healthcare and biotech sector. I used to like what the managers at International Biotechnology Trust (LON:IBT) said but the SP really hasn't done anything over the last few years and hearing that the sector is in a bear market wears a bit thin after a while regardless of how true it might be.

https://theaic.turtl.co/story/compass-april-24/page/1

fwiw, I liked the following article. It's all pretty basic stuff to Stockopedia subscribers but a good read all the same.

https://tinyurl.com/5d9kschd

SSB

Pershing Square Holdings (LON:PSH) There has been a lot of discussion re fees charged. Here is the March statement. So NAV increased 3% after the fees- which are substantial were paid. I hold and am more than happy with the fees given the returns achieved.

Canadian General Investments (LON:CGI) been following this for a while and not purchased. Was reminded by the Ian Cowie mention in the AIC compass I received today and bought a few. I have no US exposure and am belatedly looking to gain some. I find it hard given the valuations of some US stocks but I guess as the Manchester and London manager said recently in a couple of years todays prices will look cheap. Time will tell.

Henderson Far East Income (LON:HFEL) ( I hold). Lates Insight "Postcard from Asia: India and Indonesia" https://www.janushenderson.com... NAV performance has picked up +9% over the last 3 months with a yield of 10.95%.

Utilico Emerging Markets Trust (LON:UEM) have just released their late portfolio news. (I Hold) https://www.uemtrust.co.uk/new...

Thanks for the replies. I’ve followed up Charles’s suggestion including pasting my post here to  her. So it included all the ludicrous H/L gobbledygook too. 

The operative at Hargreaves tried to be helpful but didn’t even seem to know what an Investment Trust is!

I hold Gresham House Energy Storage Fund (LON:GRID) and am disappointed to the share price slide, despite the buybacks happening that the board have not clarified the dividend target for this and next year. It does seem Boards are oblivious to shareholders- well show no concern for informing the smaller private ones. I can find no direct email so have contacted the PR firm suggesting they contact the board with regard to an urgent announcement concerning this. Maybe the journalist David Stevenson who is a Senior Independent director of GRID and writes about trusts for Citywire would like to focus on this company and its shareholders. 

This is scandalous imo. 

I want to buy Digital 9 Infrastructure (LON:DGI9) but can’t because Hargreaves Lansdown insist on the  investor passing  an examination first, and for reasons I can’t fathom, I’ve failed on one question.

It’s sheer stupidity that I can buy a hopeless share at big risk of going bust  like Superdry (LON:SDRY) but can’t buy a pooled  Investment like DG19 without this farcical test. Pointing out that I was a very experienced investor in Investment  Trusts fell on deaf ears. 

This needs exposing. Nonsense like this puts small investors off Investment Trusts. Trusts are already finding it hard to get new issues away and there are ever fewer Trusts and if this continues  there will be fewer investing in those left. 

Is it worth notifying DG19 Management as this is the last thing they will want surely?  

Also perhaps getting aic involved too? 

Below is the unnecessary and often irrelevant info sheet Hargreaves provide ahead of the questionnaire. Much of.it is irrelevant gobbledygook! 

“Why are some investments complex?

Infrequent opportunities to sell or high exit charges: Complex investments can often be difficult or impossible to buy or sell. Some may have dealing restrictions; for instance you may only be able to deal monthly or less frequently. For other investments which have specified maturity or redemption dates, investors may be unable to sell their investment during the life of the product meaning it can be difficult to gain access to your capital before maturity. Where you can sell, there may be high charges for early redemption.

Prices not publicly available: The price of some investments are not publically available or published regularly, or they may be in a currency in which investors cannot deal and could potentially be subject to additional costs when trading.

Where an investment can only be traded with one counterparty – for example the issuer of derivatives that an ETC/ETN is using to track the price of an asset – investors may be reliant on that counterparty offering a fair and correct price.

The investment is a derivative or it embeds a derivative: Some complex investments do not hold assets. Instead they use complex derivatives to match the return of an underlying investment or index. Derivatives carry a number of risks including magnifying the price movement of the underlying investment. There may also be extra costs to the investor through 'roll over' options. This is where derivatives held by the complex investment expire and new ones are bought.

Should the issuer of a derivative become insolvent, investors could lose their entire investment regardless of the performance of the underlying asset that the derivative is tracking. This is known as counterparty risk. This loss is unlikely to be covered under the Financial Service Compensation Scheme (FSCS) and investors may not be able to complain to the Financial Ombudsman Service (FOS).

Convertible risk: Issuers may have the right to forcibly convert from one type of investment to another, for example from a bond or preference share, to an ordinary share. This may be done at a time which is not favourable for investors. The price of a convertible investment is linked to the price of the investment into which it could be converted and may move sharply around the conversion dates. It is also likely investors in convertible shares will be converted into an investment ranking lower in the order of priority for repayment should the issuer go into administration.

Limited or very complicated product information: An investment can often be complex due to a lack of information regarding its structure and risks. Often where details are provided, they may be very complex as they are written with professional investors in mind.” 

Here’s the question I apparently got wrong. What IS the correct answer? 

“Complex investments can carry counterparty risk. Which of the following is the most accurate description of counterparty risk. 

1The loss of money due to the default (insolvency) of the derivative issuer. 

OR  

2 loss of money due to rolling over future contracts.

OR

3. inability to sell an investment on a stock marketSent from my iPad.” 

They let me retry 3 times so I gave a different answer and failed again. The third time I gave the only answer left and still failed! 

And finally here’s why I failed:- 

“Unfortunately you can't continue

Based on your answers you are unable to buy general complex investments

You may revisit the key risk information section and retake the test, or exit to return to your portfolio overview.

The questions you answered incorrectly are:

• Which of the following are possible risks of investing in complex investments?
• Complex investments can carry counterparty risk. Which of the following is the most accurate description of counterparty risk?

So I retook it and gave a different answer but failed again. They let me retake it again so I gave the only other answer left but STILL failed!! 

And as a result of all this nonsense I can’t buy DG19! 

Does anyone have a view on Real Estate Credit Investments (LON:RECI) . Price is falling but all the latest from the company seemed positive. Yield now plus 10%

Spring newsletter from Oakley Capital Investments (LON:OCI) (I hold). Follow this link https://mailchi.mp/oakleycapit...

Strategy question – multiple different viewpoints welcomed from the wise collective.

Fidelity Special Values (LON:FSV)  was bought for me by my stockbroker and was one that I kept when I transferred everything into my Barclays SmartInvestor ISA last year. Its aim is to find UK companies which are undervalued or where the potential has not been recognised by the market. According to the AIC website, its total share price returns have been: 9.4% over 1yr; 15.1% over 3 yrs; 24.9% over 5 yrs; and 97.9% over 10 yrs. I’m happy with that return, plus it has low ongoing charges of 0.7% and a dividend yield of 3.07%.

I recently looked at the full list of companies it owns, not just the top ten, and it contains about 10% companies that I hold or have held, plus more that have been on my watchlist – so it feels like it fishes in very much the same pond in which I stockpick.

My first thought was a sort of smug vindication – they and I are clearly on the right lines and I can carry on my course to a fabulous capital growth future by both doing it myself and having Fidelity in my corner.

My second thought was that there’s an overlap and therefore lack of diversity. I should sell Fidelity as it’s doing what I’m doing and use the money for an investment trust that complements my stockpicking.

My third thought was that it would be a lot less work to just let Fidelity get on with it and not go to the bother of stockpicking – I could sell the shares and pile the money into Fidelity.

I’m now in indecision paralysis.

My investments are in roughly a third global tracker, a third investment trusts and a third shares that I stockpick.

Any suggestions?

I sold out of my renewable holdings Foresight Solar Fund (LON:FSFL) & NextEnergy Solar Fund (LON:NESF) earlier in the year - lost about 15% on both, but felt they still had a way to drop and with a lot of uncertainty around interest rates and their model I felt it was better out than in.

I found the following article quite interesting with regards to Gresham House Energy Storage Fund (LON:GRID) which has had a horror show for the last few months - down about 75% I think, but to be fair National Grid has not helped, but there  might be some light at the end of the tunnel for it.  It pulled its dividend back in Feb, so don't take the Stocko div figures into account.

Anyway, an interesting one to do more research on and see if it holds a recovery story.

https://www.itinvestor.co.uk/2...

The author (Stuart Watson) writes the very detailed reviews of all of the IT's on Money Makers and is very good.

I bought Chrysalis Investments (LON:CHRY) in January after excellent  posts from Donald Pond. In case anyone hasn’t already seen it, there’s a good thread  here on Chrysalis started by Donald:-

https://www.stockopedia.com/co...

Hardly anyone agreed with my enthusiasm for Amedeo Air Four Plus (LON:AA4. They’ve announced the next quarterly dividend which is, as expected, 2p. That’s a yield of 4.8% just for that dividend and it’s 19% annual yield. The share seems to have bottomed now.  Share goes ex dividend on 11th April and pay day 30th April.

As posted before including on a separate Mining sector thread, the chances of a long and sustained Mining bull market are high. The big doubt is when it will start. The sector has been strong recently and not impossible that it’s already started. 

BlackRock World Mining Trust (LON:BRWM) NAV was up 13p today at £5.73p compared with £5.60 yesterday. Share price is only modestly above recent £4.94p low at £5.31p. Looks a great lockaway. Dividend yield may well have bottomed and the lower the investor buy price the better the yield. 

Digital 9 Infrastructure (LON:DGI9) . I sold but after reading Donald Pond’s post on the separate “DG19 falling knife or opportunity” thread am very tempted to buy it back. IF aic NAV figure of £1 (compared with share at just 22p) really is realistic then regardless of the short term negatives covered by Donald, buying now could pay off in time. 

Again in case anyone hasn’t seen it here’s that Digital 9 Infrastructure (LON:DGI9) thread.  Scroll to Donald’s post there at 3.30 today. 

https://www.stockopedia.com/co...

VinaCapital Vietnam Opportunity Fund (LON:VOF) I know I’m like a stuck  record on Vietnam and this Trust but it still looks so worthwhile bothering to check it out. NAV is up  to £6.06 today and up 52p so far this year, The share price at £4.68 is only up 12p this year, with main reason for the lag being the widening discount to NAV. 

Sold my poor investment in BH Macro (LON:BHMG) which has been a bad 18 month holding and bought Chrysalis Investments (LON:CHRY) which I have been following for a while. AVI stake was a factor, plus Donald Pond's excellent note "Chrysalis - about to become a butterfly (again)". Citywire just issued a report saying AVI now hold 8.4%.

BlackRock World Mining Trust (LON:BRWM) is looking very good at the moment - although these things can turn on a sixpence.

Discount has now (due I think mainly to a bank holiday and not catching up to the US) gone out to over 9% by my calculation.

If you think commodities have a way to run then this looks good at the moment - a 9% discount on BlackRock World Mining Trust (LON:BRWM) is unusual in my experience.

I hold.

Supermarket Income REIT (LON:SUPR) The company have announced that the managers have basically a 2 year pay off in various scenarios. Not sure if the Trust feels a possible takeover is being considered- given the discount is only 13% and yield only just above the latest purchase of a Tesco store which yields 7.5% which is being funded by borrowings through the current revolving credit facility not sure what the huge attraction would be. I have held the shares but the disappointing share price did not justify holding on for the yields. The managers do talk a great story- but  I have just rather lost confidence in anything other than the yield providing a return-to be fair the dividend would appear pretty safe. 

"

The Company also announces that it has entered into an amended and restated investment advisory agreement (the "Revised IAA") with its investment adviser, Atrato Capital Limited (the "Investment Adviser"), and its alternative investment fund manager, JTC Global AIFM Solutions Limited.

The principal amendments to the existing IAA relate to the termination provisions of the agreement and seek to reflect the original commercial intentions of the Board and Investment Adviser. The Board has agreed to make these amendments to provide clarification for all parties in the event of a takeover, delisting or liquidation (a "Relevant Event"). As described below, the Revised IAA allows for a payment in lieu of written notice to the Investment Adviser following a Relevant Event, limited to the equivalent of the fees that would have been due over the existing rolling two-year written notice period. The two-year written notice period was agreed in July 2021 (RNS Number: 2849F), in conjunction with a reduction in the investment advisory fees.

In particular, the Revised IAA:

· clarifies that fees relating to the period following a Relevant Event are calculated on the basis of the last available net asset value prior to the Relevant Event;

· gives the Company the right, in addition to its existing right to terminate on two years' written notice (where notice would be required to be worked), to terminate the agreement following the announcement of a takeover, a possible takeover or a delisting. Such termination would take effect upon the Relevant Event becoming effective and the Investment Adviser would, on that date, receive a payment in lieu of written notice (such that notice would not be required to be worked) equal to fees for a period of two years less the time since the notice was given or (if earlier) since the date on which any earlier termination notice was given; and

· clarifies that if there is a liquidation or similar event in relation to the Company, and the Investment Adviser terminates the agreement with immediate effect (as it has always been entitled to do), the Investment Adviser would immediately receive a payment in lieu of written notice (such that notice would not be required to be worked) equal to fees for a period of two years less (if applicable) the time since any earlier termination notice was given.

"

Life Science Reit (LON:LABS) I recall when it launched thinking this was a good idea-the demand for labs seemed to be greater than the supply. However I did not invest as I could not quite understand the investment strategy. Sadly for those who did invest my caution was warranted. Very disappointing results re the dividend. Personally nothing would induce me to invest now- I note they now state dividend will reflect earnings . 

Hi Charles, ditto other people's sentiments re this thread. Really enjoyable and so many different trusts discussed.

fwiw, one or two links, thoughts and the usual unanswered questions from me! In no particular order:

Renewables Infrastructure (LON:TRIG) continues to sell assets at prices higher than 31.12.23 NAV but the SP keeps sliding! Now on a 22% discount to NAV. 7% yield is covered but AIC web site says revenue reserves are zero. What I have learnt in the past is that the AIC do not always populate 'revenue reserves' if the number is not easily available from annual reports. Any thoughts ? I have a small holding currently at a loss to my buy price but the dividends keep rolling in. 

https://tinyurl.com/mu9dyuh5 

Kepler article on BlackRock World Mining Trust (LON:BRWM).

https://tinyurl.com/3y7uaw2z

What caught my eye was the following:

Chairman of the board David Cheyne said: “Inflationary pressures are easing in the US and UK and inflation is expected to return towards target in 2024. Remaining COVID-19 pandemic era supply disruptions are also fading and the Chinese government has moved forward with a series of stimulus measures to turn round its ailing economy which should support commodity demand. The energy transition to a low carbon economy is also set to increase demand for materials in the supply chain for low carbon technologies, including copper, steel and lithium, which is a positive tailwind for selective parts of the mining sector.” 

I have kept my pretty much all my holding even though HL says the SP is down 21% over the last year. Copper is the key for me. It is in short supply and the time taken to get new mines up and running is significant. Does China have significant reserves built up ? Maybe but it's western nations that are demanding it more now for electrification.

Charles, you have said in the past Tritax Big Box REIT (LON:BBOX) is one of your core holdings. I understand the acquisition of UK Commercial Property REIT (LON:UKCM) is going through at a 10% premium to NAV. I looked up the UK Commercial Property REIT (LON:UKCM) assets and they look pretty decent from a web site perspective (nothing compares with seeing stuff in real life). Tritax Big Box REIT (LON:BBOX) is currently trading at an 11% discount to NAV with a covered dividend of 5%. 

It seems the UK Commercial Property REIT (LON:UKCM) assets will only make the combined NAV better in terms of quality: 

Aubrey Adams, chairman of BBOX said: “The Board of BBOX believes the Combination has compelling strategic and financial rationale for both BBOX and UKCM Shareholders. UKCM has assembled a high-quality logistics-oriented portfolio with a South-East and Midlands focus and significant embedded rental reversion potential, all characteristics which are complementary to BBOX’s current portfolio. The Combination grows BBOX’s exposure to “last mile” and urban logistics assets which have the potential to enhance returns of the existing portfolio. This Combination represents a continuation of the highly successful strategy that BBOX has delivered since IPO and which over recent years has included acquiring selected “last mile” and urban logistics assets.

Any particular views on the combined entity going forward ?

https://tinyurl.com/drmb6yfh

2 trusts that I would like to top up on at some point are HgCapital Trust (LON:HGT) and AVI Global Trust (LON:AGT). On HgCapital Trust (LON:HGT), I read a recent CityWire article (apologies, I can't find the link) that said the average PE is 26. That seems full to me but the trust keeps selling holdings at above NAV so maybe not too over the top.

On AVI Global Trust (LON:AGT), the discount has narrowed but lots of the holdings are trading on wide discounts to NAV, especially the private equity and Japan trusts so the headline discount (very much like Migo Opportunities Trust (LON:MIGO) and TR Property Investment Trust (LON:TRY)) is not the end calculation that private investors need to understand. 

Monthly update read well and the trust manager has recently bought. Joe Bauernfreund was interviewed by MoneyWeek recently and provided a useful summary of Japan over the last 30+ years. I like the Japan theme and also the big holding in Oakley Capital Investments (LON:OCI). Not on such a steep discount these days but I like the value approach. I already own and may add. fwiw, Pershing Square Holdings (LON:PSH) gets a mention in the attached link.

http://tinyurl.com/yxjfyxu9

fwiw, I have noticed that Nippon Active Value Fund (LON:NAVF) typically goes up on bad days. No idea why.

I liked the following articles by George Ensor: 

Why buy UK small caps ? Because they're as good as S&P500.

http://tinyurl.com/3cnvkz7w

4 things we need for the big small-cap recovery.

http://tinyurl.com/84xh2vrd

Finsbury Growth & Income Trust (LON:FGT), I have posted about this a few times on Stockopedia but still not bought it. Focus is on a concentrated portfolio of mainly UK listed companies with high margins and ROCE. Investing in companies making high use of AI is also frequently mentioned.

http://tinyurl.com/bddkh2u4

Trust managers also recently released a 30 minute video. 

https://www.youtube.com/watch?v=cDmSMadolzA

Perhaps I should also just take the plunge on Finsbury Growth & Income Trust (LON:FGT) given it's good underlying quality stats and the fact Warren Buffett is buying Diageo (LON:DGE).

I was surprised by the announcement this week from Scottish Mortgage Investment Trust (LON:SMT). If these guys can't find somewhere decent to invest money then no one can. Will the buybacks work ? Not sure but I quite liked the announcement, simply for the fact that Scottish Mortgage Investment Trust (LON:SMT) are upbeat on the cash generation of their existing holdings. 

Maybe I should cut my (small) losses on Capital Gearing Trust (LON:CGT) and Caledonia Investments (LON:CLDN), and invest the proceeds into Scottish Mortgage Investment Trust (LON:SMT) at a 15% discount for the next few years ? Accept there will be some ups and downs along the way. I have too many boring holdings anyway :-)

A discount has opened up on City of London Investment Trust (LON:CTY). In fact the biggest discount in 10 years. Yield of 5% with 0.44 years of that covered by revenue reserves. I could be tempted to switch my Edinburgh Investment Trust (LON:EDIN) holding over to City of London Investment Trust (LON:CTY).

Finally, I notice the stats in the most recent AIC Compass update: "And for those who like buying at discounts, there’s some interesting research that my colleague, Nick Britton, has done which shows that investing when discounts are more than 10% can lead to better returns in the following years. The difference based on historic data is quite significant – annualised returns of 13.6% over the next five years when investing at a double-digit discount, compared to 9.3% when investing at a discount narrower than 5%. That’s more than four percentage points difference"

We knew that already right ?! Just nice to see  some stats confirm it.

https://theaic.turtl.co/story/compass-march-2024/page/2/3

Thoughts on any of the above welcome.

SSB

Hi Charles, thanks so much for keeping this thread going, and growing.  

Georgia Capital (LON:CGEO) A PE frontier fund focussed on Georgia. The main holding is Bank of Georgia (LON:BGEO) -about 33% of the fund asset value. Bank of Georgia has just purchased Ameriabank- a large bank in Armenia. CGEO trades at a discount of 55% to NAV- and you can see the NAV every 15 minutes on their website. https://georgiacapital.ge/inve...

I hold the fund. Biggest risk is obviously Russia starting another invasion- but unlikely at the moment in my opinion. But it is a risk and there is some unease at the number of Russians who fled Russia after the war with Ukrainian started and moved mainly to the capital Tbilisi. 

I am keen on frontier and emerging market funds- personally think  the risk is outweighed by potential returns given shifts in international sourcing of goods .I also hold BlackRock Frontiers Investment Trust (LON:BRFI) , Blackrock Latin American Investment Trust (LON:BRLA) , iShares MSCI Mexico Capped UCITS ETF USD (Acc) (LON:CMX1) and iShares MSCI Turkey UCITS ETF USD (Dist) (LON:ITKY) . 

India performed poorly last month as a shakeout of local Private investors took place. It seems to have stabilised now and a rally is anticipated. Macau Property Opportunities Fund (LON:MPO) was down- a fund I have dealt in pre covid and did well. Whether Macau property prices will recover is the question- the fund is winding down. I am monitoring it.