Investment Trust- Thoughts (August 2025)

1st Aug by Charles Mitchell

210 comments 7107 reads

Investment Trust- Thoughts (August 2025)

Links to older monthly thoughts-reader request.

July 25 June 25 May 25 April 2025 March 25 February 25 January 25 December 24.

November October September August July June May April March February

For more information on Investment trusts visit:

Association of Investment Companies.

https://www.theaic.co.uk/
Free to sign up. On the site you can create portfolios, screen and compare Investment Trusts by Geographic region, Sector , Yield and more. A few Trusts who are not AIC members have limited data.

Jonathan Davies's website https://money-makers.co/.

You can also sign up(Paid membership) for insights on Investment Trusts from him and others. Weekly email and podcast .

Citywire do a daily Investment trust email. Free, does have sponsored content but keeps you up to-date with Investment Trust news.

https://citywire.com/investment-trust-insider

Trustnet have an Investment trust section. https://www.trustnet.com/

Kepler Trust intelligence produce reports for Investment trusts

Edison cover Investment Companies and do a monthly Investment trust round up. You can sign up for free.

https://www.edisongroup.com/equities/investment-companies/.

You can sign up for newsletters/fact sheets from most of the Investment Trusts on their websites.

For ETF's I use https://www.justetf.com/uk/. You can screen buy region, sector and see performance comparisons.

July2025 Investment Trust monthly performance.

Top 10 Equity only

Athelney Trust (LON:ATY) +18.2%

Manchester And London Investment Trust (LON:MNL) +16.2%

Biotech Growth Trust (LON:BIOG) +16.2%

Crystal Amber Fund (LON:CRS) +16%

Barings Emerging Emea Opportunities (LON:BEMO) +15.6%

British and American Investment Trust (LON:BAF) +13.3%

Vietnam Enterprise Investments (LON:VEIL) +13.3%

Fidelity China Special Situations (LON:FCSS) +13.2%

RTW Biotech Opportunities (LON:RTW) +12.8%

International Biotechnology Trust (LON:IBT) +12%

Bottom 10 Equity only

Augmentum Fintech (LON:AUGM) -9%

Schroders Capital Global Innovation Trust (LON:INOV) -5.9%

Majedie Investments (LON:MAJE) -3.9%

JPMorgan Emerging Europe Middle East & Africa Securities (LON:JEMA) -3.5%

Sure Ventures (LON:SURE) -3.5%

Shires Income (LON:SHRS) -3.4%

Bellevue Healthcare Trust (LON:BBH) -3.2%

Onward Opportunities (LON:ONWD) -3%

Jpmorgan Uk Small Cap Growth & Income (LON:JUGI) -3%

abrdn New India Investment Trust (LON:ANII) -2.9%

Top 10 All Types

Athelney Trust (LON:ATY)…

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Graham Wells

29th Aug

Hi Charles,

Unfortunately I wasn’t able to join the call. Did you have any success with asking Tim if it could be recorded? Or is anyone able/willing to provide an account of the main points? I realise this may entail some work for someone but it would be a great shame if more investors weren’t able to learn more about Augmentum Fintech (LON:AUGM) and possibly invest.
I spoke to Tim last year at the AIC conference and I asked him when they were likely to realise/divest some of the portfolio and he said probably 2026. Don’t know if he was asked about that again and if he still feels that’s the case?

Thanks, Graham.

Charles Mitchell

He said he would record, I have asked if he did and share. Maybe it has to be vetted by compliance first. I tried to highlight key points above. He did say he wants to run with Tide, but if offered £120m for the holding would have to consider it. As I recall figure might of been higher, he believed in running winners and Tide is one. Others on call might have some input. My impression is Tide could be worth pretty much the current market cap of AUGM in 2-3 years.

KevinS1

I think Charles's points above cover the main points from the meeting.

Prior to the meeting I was concerned about their discount and also their Mkt Cap - they are way too small to attract any significant corporate activity.

I still think this is a major risk/concern, but I was encouraged by where we are in the cycle and the overall opportunities within the PF. I would hope it wouldn't take too much for the discount to come down from its >40%.

I think this might work out OK over the next couple of years, but it could take a while before any return is seen. I am considering increasing my holding and making it more of a medium sized holding.

Tim is down to attend the AIC conference and he is going to look into making Mello in Nov.

Jon F

30th Aug

Hi Charles,

Thanks again for organizing. It was indeed an interesting call.

One further point Tim made was that he was open to email and invited any follow up questions. If I noted his email correctly, it was Tim@augumentum.vc

Thanks again, particularly for time slot which was my suggestion (and apologies to those that couldn't make it because of the time!)

Jon

Augmentum Fintech (LON:AUGM) Tim Levene apologises, he forgot to record the call. I suggested we repeat in 12 months and see what has changed!

ken mitchell

Can’t resist replying to a few recent posts here, even though main focus is I’m still in hospital with several spine fractures (don’t know how they occurred)and one swollen on to spinal nerve, that have rendered me immobile for several weeks. Spine xray today will show whether normally straightforward vertebroplasty operation/procedure this week was a success.

Don’t feel an urge to sympathise……as kind though it is when that happens it clutters up what should be an Investment Trust bulletin board and imo this bb is at its best when firmly on topic.

So …..getting back on topic!

First re the merits or otherwise of a forever portfolio that should be able to look after itself in the event of our demise and partner or whoever with little knowledge. I think it works!

Example?

Take a look at the virtual portfolio posted here by number33 at the start of each month. It has a lot of flaws and since starting in 2016 too many poor buy and sell decisions! Yet note this. It has more than doubled and first doubled in no time several years ago. I.e the stake could have been taken out by halving everything once the portfolio had doubled to run the remainder risk free of losing any of that original stake.

Our portfolios now have so much regular income coming in every month along with some holdings that have tripled or more that it too should look after itself now. Obviously with big ups and downs according to markets behaviour but doesn’t the regular income, even in the event of some Trusts and shares cutting dividends protect sufficiently?

Unlike some contributors here I have sold nearly all our renewables/green Trusts… and broken the forever rule with these. . Don’t trust them, and find them too opaque. I used the proceeds to top up quality mainstream Trusts like City Of London Investment Trust (LON:CTY) , Merchants Trust (LON:MRCH) , Aberdeen Asian Income Fund (LON:AAIF) BlackRock World Mining Trust (LON:BRWM) , CQS Natural Resources Growth and Income (LON:CYN) (now paying huge dividend at my buy price) VietNam Holding (LON:VNH) VinaCapital Vietnam Opportunity Fund (LON:VOF) Fidelity China Special Situations (LON:FCSS) , Jpmorgan China Growth & Income (LON:JCGI) and quality shares like Aviva (LON:AV.) (got some for just 245p several years ago) Phoenix group (LON:PHNX) Rio Tinto (LON:RIO) BHP (LON:BHP) and others, instead.

Note what looks like the BRAG of reporting that Aviva (LON:AV.) top up at extreme low price. That’s my key method that works. I buy the big panic dips so most of the portfolio is bought at bargain prices. They go even lower for a while sometimes, but buying as low as we can surely reduces the risks?

e.g I posted during the Trump tariff panic dip in April about topping up opportunities for the likes of BlackRock World Mining Trust (LON:BRWM) …now 40% higher, and the Vietnam Trusts, like VietNam Holding (LON:VNH) also 40% higher now and though riskier, the Chinese Trusts Fidelity China Special Situations (LON:FCSS) (now 50% higher) and Jpmorgan China Growth & Income (LON:JCGI) . There are far fewer obvious bargains now after the strong market rally, so even if posting regularly here, I wouldn’t have many new ideas to check out. Perhaps Pharma/Biotech Trusts in time but even International Biotechnology Trust (LON:IBT) Managers are hinting there’s no rush.

Plenty to ponder there! Not all by any means will agree with my favoured methods.

Finally for other Mike Walters bb stalwarts now posting here, it’s SO good to read your posts, including Grecian (George54 here) now too. This is a great thread when on topic and so many thanks to Charles in setting it up. What a stalwart!

Ken, glad to see you post. I hope you recover soon. Charles

Thanks Charles. I should have waited for the new September thread, so will copy it to there now.

Thanks Charles,

I will look into Augmentum Fintech (LON:AUGM) again and do some more research with a view to taking a starter stake when funds are available.

Graham.

Graham, I am about as confident in this one as one can be. The NAV has not performed badly, it is more the discount. I cannot see any banana skins and Tim has a large vested interest in getting the share price up.

The Phoenix

Charles I just wondered if yourself or any other readers have an opinion on LSL Property Services (LON:LSL) ?

Going off Stocko figures tad over 4% yield covered over 2 x on future earnings estimates, they are buying back shares, according to perplexity AI they have roughly 32 mil net cash and future profit forecasts of £29 mil against a £280 mil market cap.

I have a bit of kit at work where I can take a deeper dive into current holdings , Some firm called Brandes Investment Partners holds 16%.

Negatives off the top of my head the usual more working from home and demand for town centre retail space ever shrinking.

Regards

Andy

Not one I have ever looked at. Anything to do with mortgages scares me off as do estate agents- I have little idea what is going on in the sector. Sorry cannot help with this. Does seem to have plenty of cash, though Net assets seem low.

sevenccc

31st Aug

Andy LSL Property Services (LON:LSL) is one I like and hold. Topped up recently as the price came off recent highs. Mix of Estate Agency, now franchises and helping margins improve, Surveying and Financial Services for residential. I think it is fair value compared to Property Franchise (LON:TPFG) and also keep an eye on Mortgage Advice Bureau (Holdings) (LON:MAB1) as providers of similar services to the same demographic. Housing market normalising post Stamp Duty boom and bust earlier this year. Savills estimate a little over 1m home moves this year against normal 1.2m for UK. They expect it to trend up but that may depend on what brilliant schemes the Treasury boffins force on dear Rachel this Autumn. From memory I think Property Franchise (LON:TPFG) were slightly more optimistic in last commentary.

I think it's worth 12-14x next year's EPS, so 350p+ against current 272p. Just my view. Operating margin moving up strongly now Estate Agency side is franchised. Should be up to 16%+ for this calendar year.

OldSchool05

Charles, thanks for posting how the call went. Unfortunately during work so couldn’t make it.
if Augmentum Fintech (LON:AUGM) Get £120m for their holding in Tide, that would be double its current NAV valuation (of around 65m) and more than 80% of the current market cap (of £145m). That would be a pretty sharp injection to the share price. Do you think that level of £120m is based on the $1bm mentioned in the recent private interest reported by Sky?

I don't think so. I”A sort if we were offered £120m now we would have to think about it. But I got the feeling there is perceived value for the holding at a lot more than the current value, he said several times run your winners.

Vauthion

Charles, a belated thank you for arranging the call with Tim Levene. Very illuminating and time well spent.

Brucie5

1st Sep

Welcome back, Ken. Concerning the Forever Folio strategy, aka *Natural Income*, apparently, I'm interested to know how much of the income needs to be reinvested, to keep growing. My requirement, and I believe, others like me, is to live off the dividend. I'm presuming there are two possible ways of doing this: either accepting lower dividend/higher growth for at least part of the folio, or maximising dividend in order to have some extra to reinvest. I recently discovered TMF Mayne runs an online folio, and claims to live off the dividends. Though in his case, discrete companies with lower dividends. He very rarely sells. The inclusion of ITs such as those you mention of course widen the net, making it less likely that you'll take a big hit, and more likely that you'll benefit from sectoral bull markets somewhere (at least as much as the opposite!). Unlike you though, I'm not ready to write of green ITs just yet.

Get better soon.

Hi Brucie5,

If I was looking to a forever folio strategy, I would be looking to include IT's such as 3i Infrastructure (LON:3IN) . Assuming that the base position when starting to live off the dividend is adequately covered, then this trust has such a good long term track record of growing NAV and growing the dividend above inflation. It is only a starting dividend of around 4% but is committed to grow that dividend at around 6% per year.

I would much rather set out on a yield that looks sustainable (one to live off) of say 4% and then sleep happy in the knowledge there is a strategy by the Manager to keep it growing.

Thanks for the info and reply Sevenccc

Good point, yes. Trouble with buying 3i Infrastructure (LON:3IN) is that it's a bit like the Irish joke, "I wouldn't start from here". And without denying your greater point about it's forever qualities, I also have quite a bit of infrastructure. Would you prefer it to Murray International Trust (LON:MYI) or Merchants Trust (LON:MRCH) , for example? Or Temple Bar Investment Trust (LON:TMPL) ...

Investment Trust- Thoughts (August 2025)

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Charles Mitchell

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