Investment Trust- Thoughts (June 2025)
Investment Trust- Thoughts (June 2025)
Links to older monthly thoughts-reader request.
May 2025 April 2025 March 2025 February 25 January 2025 December. 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/
Plenty of performance data on that site.
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.
May 2025 Investment Trust monthly performance.
Top 10 Equity only
Seraphim Space Investment Trust (LON:SSIT) +41.7%
Manchester And London Investment Trust (LON:MNL) +23.6%
Augmentum Fintech (LON:AUGM) +22.8%
Schiehallion Fund (LON:MNTN) +17.6%
River UK Micro Cap (LON:RMMC) +13.4%
Weiss Korea Opportunity Fund (LON:WKOF) +13.4%
Polar Capital Technology Trust (LON:PCT) +13.2%
Molten Ventures (LON:GROW) +12.8%
Odyssean Investment Trust (LON:OIT) +12.6%
Canadian General Investments (LON:CGI) +12.2%
Bottom10 Equity only
Majedie Investments (LON:MAJE) -9%
International Biotechnology Trust (LON:IBT) -8.6%
British and American Investment Trust (LON:BAF) -6.2%
RTW Biotech Opportunities (LON:RTW) -3.9%
Nippon Active Value Fund (LON:NAVF) -3.7%
Biotech Growth Trust (LON:BIOG) -3.5%
Polar Capital Global Healthcare Trust (LON:PCGH) -2.7%
Digital 9 Infrastructure (LON:DGI9) -0.6%
Bellevue Healthcare Trust (LON:BBH) -0.1%
Athelney Trust (LON:ATY) -0.0
Top 10 All Trusts
Seraphim Space Investment Trust (LON:SSIT) +41.7%
Hydrogenone Capital Growth (LON:HGEN) +31.5%
VH Global Energy Infrastructure (LON:ENRG) +26.2%
Manchester And London Investment Trust (LON:MNL) +23.6%
Augmentum Fintech (LON:AUGM) +22.8%
Schiehallion Fund (LON:MNTN) +17.6%
Aquila European Renewables (LON:AERS) +16.5%
Geiger Counter (LON:GCL) +16.3%
Us Solar Fund (LON:USF) +15.7%
River UK Micro Cap (LON:RMMC) +13.4%
Botton 10 All Trusts
Aquila Energy Efficiency Trust (LON:AEET) -53.5%
VPC Specialty Lending Investments (LON:VSL) -44.2%
Syncona (LON:SYNC) -11.6%
Majedie Investments (LON:MAJE) -9%
International Biotechnology Trust (LON:IBT) -8.6%
Warehouse Reit (LON:WHR) -6.9%
SDCL Efficiency Income Trust (LON:SEIT) -6.3%
British and American Investment Trust (LON:BAF) -6.2%
Riverstone Credit Opportunities Income (LON:RCOI) -5.7%
Ecofin US Renewables Infrastructure Trust (LON:RNEW) -5.1%
Discounts fort some trusts remain high. Digital 9 Infrastructure (LON:DGI9) bottoms the list with a discount of 75%, though you would need to have faith in the reality of that. I hold. Hydrogenone Capital Growth (LON:HGEN) is on 70% despite rise last month. I remain optimistic that some action will be taken to reduce the discount and might buy more. I would for sure if there was yield, which there is not. Symphony International Holdings (LON:SIHL) is on 56%,LMS Capital (LON:LMS) on 56%,Ground Rents Income Fund (LON:GRIO) on54% and for reasons I am not clear SDCL Efficiency Income Trust (LON:SEIT) on a 52% discount, yields 14.4% and has a 5 year dividend growth rate of 15%. I hold and will buy more after doing further research to make sure not missed a negative. Molten Ventures (LON:GROW) is on 52%, they have a shre back in place and listening to the recent presenation looks like some holdings will be realised. I hold and looks cheap to me. Regional REIT (LON:RGL) is on47% with a yield of 7% I hold it and am down 29%. I am going to again make sure not missed a negative before buying more.
The Health/Biotech sector continues to lag. Not a field I am that knowledgable on but I have a nephew who works in that sector and it seems interesting things are going on. I cannot believe that some of the trusts do not offer value on a 5 year basis. International Biotechnology Trust (LON:IBT) is on a 10% discount and yields 5%. I do not hold it at the moment.
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286 comments
I’m replying on the June thread as it would be a shame to see the new July thread starting with disagreements about Investment Trust.buybacks.
Though generally disliking buybacks, I have an open mind and know that some are very successful. e.g Next (LON:NXT) buybacks have been a stunning success. They’ve halved the share count and all the while they were buying back (only when they considered the share to be good value) so the multi year share price uptrend continued.
My gripe is with the far too many ineffective Investment Trust buybacks like that waste of £2 billion on them by Scottish Mortgage Investment Trust (LON:SMT) as covered in my previous post. Can’t people including the Trust Managers and those who advise them to go for huge buybacks , see that spending all that money only to see the discount widen even further is a waste of a lot of money? Why not stop them once it becomes obvious they are not working???
Same applies to the VinaCapital Vietnam Opportunity Fund (LON:VOF) buybacks where again they haven’t resulted in a narrowing of that 20% discount, and where the Manager accepts that the buybacks haven’t worked and complains that he would much rather be investing that money. Exactly. Presumably there’s pressure from big investors to keep the buybacks goimg as despite those comments, the VinaCapital Vietnam Opportunity Fund (LON:VOF) buybacks are still continuing and still failing to work.
There are endless similar examples where multiple £millions are being spent on buybacks, which only modestly increase NAV and are failing to narrow discounts. NAV can be better increased via shrewd investment buys. If the discounts did narrrow I would concede that the buybacks were worth doing.
I agree about Boards/Managers looking at returns on assets employed. Aren’t too many buybacks failing on that criteria?
Investment Trust sector is going through a difficult time with hardly any new issues and with Trusts consolidations and bids seeing the number of Trusts declining too fast. Gone are the days new issues every month and with those new issues attracting buyers by issuing free subscription shares. A case for trying that again? Or something else. There seems a sense of the sector being asleep at the wheel.
Ken, The sector I think is going through a similar changes as in the late 1980's/early90's. Trusts need, in my opinion, have a USP. If they do not why should investors buy them given the other opportunities and research sites such as Stockopedia.
We will have to disagree on the value of buybacks and SMT.
Charles.
I know we’ll continue to disagree about buybacks, but I (and possibly others reading your reply) would like to know why you are happy with the £2 billion Scottish Mortgage Investment Trust (LON:SMT) buyback? Maybe there’s something positive that I’ve failed to see?
Also did you see this section from the Augmentum Fintech (LON:AUGM) update today and the wide agreement that though accretive to NAV, buybacks are not effective in controlling the discount?
That’s exactly my gripe about them when despite that, Trusts continue to do something where it’s patently obvious they are not working as intended.
Here’s the Augmentum Fintech (LON:AUGM) section on that.
“Share buybacks are one of the mechanisms your Board actively considers. When I consulted with several of our shareholders earlier this calendar year I made a point of canvassing views on share buybacks. There was widespread agreement that buybacks, while accretive to NAV, are not effective in controlling the discount. Accordingly, we only bought back 2,550,383 shares (1.5% of our issued share capital) in the financial year (2024: 4,687,567 shares, 2.7% of issued share capital) – and only as allowed under market abuse rules. All the shares repurchased by the Company are being held in treasury. The average purchase price was 104.9p per share, representing an average discount to the prevailing NAV per share after performance fee of 37.5% and adding 1.0p to the NAV per share. No shares have been bought back since March, up to the date of this annual report.”
SMT were under pressure. Not sure why they did it either as they have performed well over the years.
It is accretive to the NAV so there is benefit. But if there are not enough buyers for the shares the discount will remain. If that state continues they get bid for and shareholders benefit by the increased NAV.
Another successful sale of an investment by Oakley Capital Investments (LON:OCI) confirms my view that private equity investment truts discounts do not reflect the underlying portfolio strengths-"The value premium on the transaction is equivalent to a c.25 pence NAV per share increase, representing a c.4% uplift in the NAV as at 31 March 2025. As part of the transaction, Origin is partially reinvesting in the combined business"
I hold OCI and Molten Ventures (LON:GROW) ,Augmentum Fintech (LON:AUGM) and Hydrogenone Capital Growth (LON:HGEN)
This is a reply to Peter T who asked last week about REITS. This post is just those in the “commercial property UK” sector and one from the “Commercial Property Europe” sector.
I’ve left till last, and then only covered briefly, the REITS that have risen substantially this year, where the easy gains have been had, and where upside though still likely, is almost certain to be much slower. Also buying any of them after their big share price gains means lower dividend yields now. And now that their discounts have narrowed the chances of bids for those are reduced.
Unfortunately there are no longer the screaming buys available earlier this year, but imo the following are still worth considering.
Custodian Property Income Reit (LON:CREI) .
Latest NAV was up 9.5% with share lagging that rise. There’s a 7.3% fully covered dividend. Disposals have all been above purchase price.
LTV is lower at an acceptable 27.9%. Anything above 40% is too high. (To save explaining again now just “Google” LTV).
Recent Results outlook comment included “the share price is well placed to re-rate and trend back towards NAV.”
Share price low this year was 68p and now 17% higher at 80p.
Schroder European Real Estate Investment Trust (LON:SERE)
Recent Results revealed a small (disappointing) fall in NAV. But LTV is a reassuring 18% as is 100% rent collection.
A big plus is that it’s one of the few REITS still on a very wide discount. That just might tempt a bidder.
Another plus is that Schroder European Real Estate Investment Trust (LON:SERE) don’t try and hide bad news ahead (as Regional REIT (LON:RGL) did ahead of their rescue rights issue to pay off a big loan they had downplayed). So investors know about the dispute with the French tax authorities about a €14.4 tax liability. SERE are confident they won’t have to pay this and have not made a provision for it. If they are right the share might well get a boost and anyway when this news first emerged the share fell heavily on one day to price this risk in.
A much bigger worry is that their biggest tenant Appledoorn which accounts for 6% of their portfolio and 18% of their rent income might vacate when the lease expires in Dec 2026. If that were to happen SERE have warned it would mean a dividend cut. But they will of course search for a new tenant or tenants to fill that possible void.
A plus is that “the Board are working on how to maximise value for shareholders and a further announcement will be made in due course.” Hmmmm…….INTERESTING.
There’s probably more upside potential than for Custodian Property Income Reit (LON:CREI) and that 32% discount prices in the known potential bad news. Well worth considering imo.
Share price low this year was 63p and only up a bit at 68p now.
Alternative Income REIT (LON:AIRE)
This is a small REIT with 20 properties. It’s on an 8.3% discount and 8.3% fully covered dividend.
Results in March revealed NAV at 82p, LTV 37% and 100% of assets let and 100% of rent collected.
The fly in the ointment is a £41 million loan due for repayment in October. They are refinancing this but it will be at a higher interest rate.
Share price low this year was 65p and now 17% higher at 75p.
Regional REIT (LON:RGL)
Discount is a very wide 47% and 7.3% dividend.
Gearing is still high at 74% but that’s well down from previous (pre the rescue rights issue that saved them) 127%!
LTV is still high at 42% but that’s down from 55%.
Borrowings even after a big loan paid off are still high at £315 million. Their loans are with 8 different lenders.
I’ve avoided this one for ages as too risky. But it is any riskier than those Renewable Energy Infrastructure Trusts with their opaque accounting? I’m tempted now for a modest risky fun punt.
Regional REIT (LON:RGL) have a record of over enthusiastic updates that have glossed over key negatives, but the Rights Issue has put them on a firmer footing now. I think Charles is quite confident.
The share price at 123p is up 20% from the year low.
The good quality Trusts that earlier this year were at sometime bonkers too low share prices and plugged here then, have now recovered and the obvious buy opportunity has gone for all of them.
e.g Supermarket Income REIT (LON:SUPR) up 30% from year low at 85p.
Aew UK Reit (LON:AEWU) …arguably the best quality Trust in the sector is only up 10% at 106p and latest NAV reported in yet another positive update last week is up to 110p. But the discount is tiny so the good news and high quality is priced in.
Schroder Real Estate Investment Trust (LON:SREI) is up 25% from the year low at 55p.
Warehouse Reit (LON:WHR) is up 50% from the year low thanks to current bid news. WHR being a likely bid candidate was covered by posters here.
I hold all these Trusts (have held some for years) except Warehouse Reit (LON:WHR) (taken the profit) and Regional REIT (LON:RGL) .
Differing thoughts on any of these, and interesting REITS I’ve missed? Please post.
Ken, I am confident aboutRegional REIT (LON:RGL) . but since I bought too early maybe misplaced. Something must happen surely- as I keep saying not adverse to corporate activity.
Thanks Ken - really appreciate the level of detail and for highlighting some ideas that are of great interest.
I did buy a small basket of REITs back in February i.e. SREI, SUPR and WHR (even topping up the latter after listening to the always-excellent Money Makers podcast (flagged here) following Blackstone's Radway Green valuation issue) so have done OK and was curious whether the REIT well had completely now dried up. It’s encouraging to see there are still a few opportunities to explore.
Thanks Peter. It’s good to read that you bought those REITS in February and in time for most and perhaps all of the gains since then. When posters here cover a wide range of Trusts it’s only occasionally we get to know if anyone follows up by buying any of them or already holds or whether or not they do well with any of them. So your post was a bonus from that angle.
It’s a shame that Aew UK Reit (LON:AEWU) looks fully valued as their Results last week were again excellent. Note in this Citywire article today that Aew UK Reit (LON:AEWU) are looking to issue new shares. Trusts can do this when trading at a premium …..or maybe Laura Elkin has another way in mind?
https://citywire.com/investmen...
Unlike too many Trusts, AEWU have not wasted money on buybacks to try and reduce the discount…too often only to see the discount stay stubbornly wide or even wider, despite the buybacks, instead of narrowing.
Aew UK Reit (LON:AEWU) haven’t needed to buyback anyway, as a long record of investing successfully with shrewd buys and disposals well above the purchase price, has lead to about the narrowest discount in the sector. (AEWU is also the best performing REIT I hold, and with dividends is up 150% since purchase).
Being able to issue new shares as Aew UK Reit (LON:AEWU) is looking to do, can be a big bonus. e. g the very successful Rockwood Strategic (LON:RKW) has taken advantage of the premium to issue 7.6 million new shares and this as well as good performance has seen NAV increase from £64 million to £96 million! I.e issuing new shares and investing that money wisely, can be far more effective than doing the opposite and shrinking the Trust with buybacks.
Disagree? Well what about Scottish Mortgage Investment Trust (LON:SMT) . They’ve spent £2 BILLION (yes BILLION) on buybacks. The discount was 4.5% when they started and had widened to 9% when they finished. I.e a waste of £2 billion. Had they invested that money successfully (and they’ve had superb performance in the past) NAV could have increased substantially AND that stubborn discount could have gone to a premium……enabling them to do like Rockwood Strategic (LON:RKW) did, and issue new shares, instead of wasting all that money buying back.
I think SABA had something to do with this Ken. Your very anti buy-backs , I am more accepting and assume boards/managers look on returns on asset employed. Not really in the managers interest as the fees reduce.
Hi Ken, re: "it’s only occasionally we get to know if anyone follows up by buying any of them or already holds or whether or not they do well with any of them. So your post was a bonus from that angle."
You may also like to know that Charles' comments about SEIT in his header led me to buy in on 4th June. I note your post of the 23rd on SEIT and that you bought at the same price but have some concerns. Has worked out well so far though.
So, thank-you Ken, Charles and all the other terrific posters here. It has opened up a new and fruitful investment avenue to me. Keep it going. Great stuff! Time now for "Investment Trust - Thoughts (July 2025)"
I should also add that I was poised to invest in SSIT but wasn't convinced by Mark Bogetts' interview on the Money Makers podcast on the 10th May. I think the expression is: Doh!
Peter, July will be up this morning
Investor Meet Company this coming week.
DUKE CAPITAL LIMITED
Audited results for the 12 months ended 31 March 2025 (“FY25”)
30th Jun 2025 at 12:45pm BS
PACIFIC ASSETS TRUST PLC
Annual General Meeting
1st Jul 2025 at 12:00pm BST
SERAPHIM SPACE INVESTMENT TRUST PLC
Investor Presentation
2nd Jul 2025 at 11:00am BST
AUGMENTUM FINTECH PLC
Annual results for the year ended 31 March 2025 on 1 July 2025
3rd Jul 2025 at 10:00am BST
Looking forward to the update from Augmentum Fintech (LON:AUGM) - will there be an update on how they will approach narrowing the discount(I hold)
Not sure if this link to ii article will work but a brief summary of six of the high yield bond funds. I own several of them and they add some stability to the portfolio
https://www.ii.co.uk/analysis-...
Seraphim Space Investment Trust (LON:SSIT)(I hold) is having a strong price run upwards- have I missed a tip or news item?
I think there is greater awareness of the defence customer element in most of the holdings and the comparative PE / discount to high profile defence stocks.
Totally agree, I bought a few months back at a 30% lower price. I have traded it a few times over the year, but I think the market is wising up to the fact its investment strategy is unique amongst listed vehicles. It should, in my opinion, trade at or close to NAV. Above NAV and there will be share issues probably , but that again could be a positive to give the trust more funds to invest. I saw a mention of Eutelsat Communications SA (LON:ETL) on the daily board recently, planning to look into that. I have held FTC- but sold as the constant news stream felt a bit rampish by the company. But one I am watching.
SSIT is the sort of vehicle trusts should be, in my opinion. Specialist by sector or geographically. I fail to see the future for the main stream trusts with a broad investment policy and no USP. Which is why I find it hard to understand why the Private Equity trusts languish, despite some having decent returns.
Seraphim Space Investment Trust (LON:SSIT) This is a bit of a piece (issued this week) from D Stevenson of FT fame :
Sticking with familiar names in the funds world, we’ll conclude with Seraphim, a dedicated venture capital fund that invests in commercial space technology. Initially, I’d been a little wary of how it valued its private assets – many listed VCs had drastically reduced their book values. In contrast, Seraphim hadn’t cut valuations by a significant amount, pointing to robust numbers in its segment of the tech sector.
A year ago, I came around to this view and added Seraphim to my buy list and since then the stock has risen 35%. Yet even after this increase in the share price, it's still trading at a 27% discount to its NAV, which is not actually that terrible when compared to generalist VCs such as Molten but less understandable when you consider that Seraphim is now increasingly a defence play – and we all know what’s happened to defence related stocks in the last couple of years.
Cue the next chart below from Sharescope. The red line represents the share price of US defence tech darling Palantir, the green line represents BAE Systems, and the black line represents Seraphim Space Investment Trust. I will leave readers to draw their own conclusions.
What might be more challenging for some readers is this point about Seraphim being a defence play i.e wasn’t it supposed to be investing in commercial space applications relevant say to insurance companies and big Ag?
A few weeks ago, Seraphim released a white paper on the defence industry and space
Thanks Snowdrop
Hi, excuse the previous post, not done this very often.
First of all I’d like to express my thanks to all the regular contributors on this board which I find most informative.
I was looking at Graham’s article on PE IT and then ventured onto both Trustnet and AIC websites to compare various trusts.
On ,Trustnet the 1 yr return is 13.5% compared to IT Private Equity return of 1.5%. In most reporting periods ICG is in the first quartile ranking. Which seems good to me. I then look at the AIC figures and for 1 yr returns it is 14.2% compared to the AIC figure of 21.4%. In all accounting periods on AIC it does worse than the comparative index, which doesn’t give as rosy a picture. In addition trustnet has the discount at circa 42% AIC is 31.5%.
Grateful for any pointers on this.
You will find 3i (LON:III) massively distorts the "index " returns. I assume you meant ICG Enterprise Trust (LON:ICGT) , not one I have looked at. Looks like it has done OK over 5 and 10 years, I have held Oakley Capital Investments (LON:OCI) for a few years now, but I they are all slightly different and one winner can make all the difference- hence the crazy valuation of III. I would not touch it, but then I would not buy its holding, Action, on current valuation. I totally fail to see what the "moat" around Action is, but have not looked hugely into it.
Assuming you are referring to ICG Enterprise Trust (LON:ICGT) , this is one I have just recommended to another family member as an 'invest and forget' share. It has been a very steady performer for many years, 14.8% Total Return p.a. over 5 years, 200% total in 10. It is worth your reading their latest Q1 RNS of this Tuesday. In contrast to 3i (LON:III) , their largest exposure to a single company (Chewy) is under 3%. They are successfully refreshing their portfolio: in the quarter 45 Full Exits completed, at a weighted average uplift to Carrying Value of 15% and a 3.0x multiple to Cost.
They are hugely diversified by geography (sort of half and half US and Europe) and underlying businesses, investing by different layers of PE fund but also with primary access to direct opportunities presented to them by their own (very successful) 'mother' company Intermediate Capital (LON:ICG) . Virtually no gearing. Progressive divided AND buybacks, they are nevertheless growing while on a >30% discount to NAV, so sort of the opposite to 3i.
I am confident they can continue in this vein. Personally I like my divs at my age, but to me this is a no-brainer for grandchildren's JISAs. Less exciting than Oakley Capital Investments (LON:OCI) , which they also have (I agree with Charles about Oakley Capital Investments (LON:OCI) 's attractions, which we also hold), but to me it's the ultimate 'widows and orphans' stock to recommend, safer than any individual stock I can think of, as long as you're comfortable with leaving well alone!
For what it is worth here is a Gemini AI summary of Oakley Capital Investments (LON:OCI) . A pretty good reflection of why I hold it.
Oakley Capital Investments Limited (LSE: OCI) is a publicly listed private equity investment trust on the Specialist Fund Segment of the London Stock Exchange. It provides investors with liquid access to the returns of a portfolio of high-growth, unlisted European companies. OCI's primary activity is investing in the private equity funds managed by its investment adviser, Oakley Capital. The company's investment objective is to deliver consistent long-term capital appreciation in excess of the FTSE All-Share Index. OCI's portfolio is concentrated in the technology, consumer, and education sectors, with a focus on digitally-enabled businesses. A key characteristic of OCI is that its shares often trade at a significant discount to its Net Asset Value (NAV), presenting a point of interest for potential investors.
1. Corporate Overview and Business Model:
2. Investment Strategy and Portfolio:
3. Financial Performance and Shareholder Returns:
4. Recent Developments and News (First Half 2025):
5. Outlook and Key Considerations:
In conclusion, Oakley Capital Investments offers a unique proposition for public market investors: liquid access to a high-performing portfolio of European private companies. The strong track record of the investment adviser, Oakley Capital, and the growth-oriented nature of the underlying assets are key attractions. However, any investment decision should carefully consider the implications of the persistent discount to Net Asset Value
ICG Enterprise Trust (LON:ICGT)
Just listed to theSchroder European Real Estate Investment Trust (LON:SERE) (I hold)presentation regarding half year results. With a NAV of £1.05 still trades at a large discount. The board seem to be fairly confident the French tax bill will not have to be paid so no provision, though the Manager seemed more circumspect implying the €25m cash would not be invested until the matter is resolved. Dividend was maintained and is covered. I got the feeling the fund size is a negative factor, it was mentioned institutional investors tended to not invest die to size. Given also they are looking at resolving the discount I wounder if a merger is being considered to create a large company ? The Manager seemed reasonably confident about the existing portfolio.
Good morning Charles. Towards the bottom of your header text above you noted that you were going to check for negatives wrt Regional REIT (LON:RGL) before investing more. I wonder if you managed to have a look at this and what are your thoughts (RGL lettings update today)
I am an absolute novice in the IT area but you and the other knowledgeable members here (as well as Graham's recent PE post) have made me a bit of a convert. Keep up the great work. Much appreciated. Thanks.
Peter, I should have posted . I could find nothing to negative and am holding on hoping for a recovery over the next 18 months. The office sector does seem to be recovering as WHT becomes less popular.(My daughter has gone back to an office for 3 days a week following a job change and is loving it !) I will most likely buy more, just waiting for sale proceeds from an inherited property my wife got - due tomorrow as it happens.
Great, thanks Charles. I bought some Regional REIT (LON:RGL) in mid-April so good to hear you found nothing negative and are looking to maybe buy more. The added colour regarding your daughter was also good to hear and made me smile.
I am also looking at Workspace (LON:WKP) I know it needs to get it's occupancy levels up but would be interested if those here have any thoughts on it. Currently bumping along above 400p. Ex-divi soon.
There is also CLS Holdings (LON:CLI) , which holds a portfolio of European offices. I hold a relatively modest position, which I'm looking to increase, as I think there may be a rerate off the back of property sales, much speculated on the advfn board and some of which have happened recently. The dividend was also rebased and its owned in large part (51%) by the Mortstedt family, though this is now in a charitable trust - further opening the speculation as to possible take over of the assets, said to be worth £2 as opposed to current share price of 68p. However, here as elsewhere, the fly in the ointment has been high loan to value - effectively, debt. While I imagine also, the costs of upgrades, plus the legacy issues of HFH, as mentioned by Charles. Yet at the end of the day, value investing is also risk taking, on the premise that Mr. Market can overlook where we can take advantage.
CLS Holdings - Sustainable Office Space
I know I've also mentioned this before, but WShak was a buyer in size quite recently, as well as in SDCL Efficiency Income Trust (LON:SEIT) where he must have done quite well. He has a value approach like mine, except with a great deal more granular understanding! So I have learned to take his purchases quite seriously.
Sorry to bang on about this, but CLS Holdings (LON:CLI) has just sold down two more property holdings, this time in Germany.
CLS Holdings PLC CLS sells two properties in Germany - ADVFN
The company states: The proceeds will be used to pay down debt, and with the recent completion of the sale of Spring Mews Student in the UK for £101.1 million, the pro-forma LTV will reduce from 50.7% at year-end to 47.0%.
The share price has formed a bowl since it April low at 60p, but at 72p is still only where it was at start of the year. Furthermore, for those with an eye on chart formations, the weighted moving averaging has just surged above the 200 for the first time since September last year, when it was around 90p. Pull out the two year chart and you will see it at 140p; 3 year at 210, though they have since severely cut the dividend. Bear in mind, obviously, that the current NAV is said to be around 200p. But if you believe they have their debt under control, it could be a great Euro property back-to-the-office play.
I hold.
Peter - you've probably seen 'todays' news from RGL about new leases and renewals - this was actually covered yesterday in the webinar (investor meets company), which is well worth a listen if you haven't already. Another interesting point they highlighted was that they are also now using their skills / resources to manage 3rd party property portfolios as well. This makes up around 10% of their income at the moment but they forecast / plan it to grow from here. I hold having bought recently.
Thanks Lincs. Haven't see the IMC for Regional REIT (LON:RGL) so will take a look tonight.
Thanks Brucie5 I'll add CLS Holdings (LON:CLI) to the list to look at over the w/e
PeterT.
I don’t follow Regional REIT (LON:RGL) closely these days and sold at a loss ages ago. The share price is down 85% over the last 5 years. I’ve had a Quick Look at their statement today and (as they always have!) they talk a good story. But there’s little on voids or disposals….the latter important in reducing the still very high debt. They brag about the dividend, but that’s after previously cutting it heavily!
It could be worth looking at now but it’s riskier than most of the Commercial Property REITS. Risky punts sometimes pay off. Below is a reply to Charles about Regional REIT I posted here on June 5th:-
“Charles. I haven’t looked at Regional REIT (LON:RGL) for a while but it has a long record of wildly over optimistic updates and underachieving. Debt was out of control but they got away it by a whisker with a rescue rights issue this time last year, along with a 1 for 10 share consolidation. Debt is still high but the rights issue has put Regional REIT (LON:RGL) on a somewhat sounder footing. Note from the section you pasted that the usually over optimistic Managers admit that “the fruits of their efforts may not translate in to our financial statements until 2026.”
You might get a better reply from someone who holds, and/or unlike me has kept an eye on recent news from RGL, but aside from the possibility of a bid aren’t there much better and less risky alternatives in the REIT sector?”
Noted. Many thanks Ken. Would Aew UK Reit (LON:AEWU) be steadier choice? (I've recently bought Regional REIT (LON:RGL) as noted in my response to Charles but am looking for others)
PeterT.
I’ve just lost a reply to you. I’ll try again tomorrow sometime.
Unfortunately you are looking at REITS after some big share price gains for some of them (covered by various posters here ahead of those gains). Those gains were either recovery from ridiculously oversold prices (e.g Supermarket Income REIT (LON:SUPR) ) or bids, like the current one for Warehouse Reit (LON:WHR) .
You asked about Aew UK Reit (LON:AEWU) . I’ve held it for 5 years now and performance has been excellent along with a big dividend. BUT that’s reflected in the now small 4% discount to NAV. Well worth considering if the share price dips.
Aew UK Reit (LON:AEWU) was also bought for the virtual IT portfolio posted on this thread at the beginning of each month by number33 at the same time as my own buy. That portfolio also holds other REITS. If you haven’t seen it, the portfolio also contains a wide range of other Trusts.
See this link for the performance etc of all the REITS including Aew UK Reit (LON:AEWU) in the UK Commercial Property sector.
https://www.theaic.co.uk/aic/f...
Schroder European Real Estate Investment Trust (LON:SERE) reported today. The Results looked ok but I haven’t had time to look properly yet. The discount is still wide at 30%. Might attract a bid or alternately perhaps it’s another consolidation target.
See this link for a lot more on Schroder European Real Estate Investment Trust (LON:SERE) . I’ve held it for years but unlikevAew UK Reit (LON:AEWU) performance has been poor….though the 7.3% divided is useful.
Telegraph Questor column tipped TR Property Investment Trust (LON:TRY) . It doesn’t appeal to me and the dividend is unexciting but a few here hold and might if they see this, post why.
More another time.
Not renewables or PE Trusts from me for once! I was satisfied with Real Estate Credit Investments (LON:RECI) results this morning. They seem confident. This is not growth stock, more a 'bond proxy' based on relatively short-term lending to commercial real estate, moistly UK but also Europe. Price is up recently, but still 9.3% yield and c. 12% discount to NAV.
Tritax Big Box REIT (LON:BBOX) Warehouse Reit (LON:WHR)” TRITAX: The listed property company has struck a deal to buy listed rival Warehouse Reit in an all-share deal that values the group at £485.2 million. The deal trumps a £470 million, 109p-a- share offer from US private equity firm Blackstone, which Warehouse Reit recommended on June 4.”
SDCL Efficiency Income Trust (LON:SEIT) results looked OK to me at first scan. Dividend roughly 1x cash covered and not only maintained but increased very slightly. I bought some more at the open.
I'm not entirely clear though whether the dividend is cash covered pre or post maintaining capex. I.e. is this a sustainable level of dividend, or a melting ice cube level of dividend? Any thoughts welcome!
The dividend cover is POST maintaining capex. I have just come off the results call, and I can see why Jonathan Maxwell came over as a little depressed. NAV maintained after substantial audits and Onyx sale process. RCF refinanced. Onyx has acquired debt at their own level sufficient to finance their growth ambitions. No effects from Trumpism confirmed, projects all continuing as they deliver reliable energy outcomes cheaper than the grid. Dividend cash cover should increase over this coming year, primarily from prior year capex generating energy solutions to sell. Driva in Stockholm beginning to branch out into other areas of energy service without need for TopCo funds... But he looks depressed probably because, despite all the reassuring delivery, his management company SDCL has had to agree, like others, to reduce their fee to 50/50 NAV/Share price. That is a current bonus to shareholder free cash flow, of course, but at this price represents a fall of about 22% in income, for a team that has actually delivered exactly what they sold in 2018.
Personally, we already hold 'full' positions in various family funds, but I will recommend them to all to consider topping up. I actually hope they do NOT get bought out, as I can't see how to replace this worthy and worthwhile business model delivering what businesses worldwide increasingly recognise they want, at last.
Thanks for the reply about the dividend cover and maintaining capex raggedtp. I couldn't make the call due to being at work, so thanks for the report on the call as well.
The plus case for SDCL Efficiency Income Trust (LON:SEIT) has been well covered here. This post is putting the negatives, for more balance. I’m not disputing the plus case well argued here by other posters.
I’m not as confident about SDCL Efficiency Income Trust (LON:SEIT) as most here.
I had sold at a loss at 57p after seeing negatives, including the too high debt in a previous update. But bullish posts here tempted me to buy again at 45p along with figuring that a 14% dividend made it worth the risk.
A number of reasons for still having doubts.
1. The now delayed sale of Onyx. Various reasons or excuses are given for that in the section I’ve posted below. Note too that last sentence…I.e it could be many more months for news on this.
Since the disposal of UU Solar for a small premium early in the year, the Company has been unable to complete disposals in the intended time frame, not due to a lack of effort or asset quality, but because of a challenging market backdrop. Investment trusts are often viewed as forced sellers, which depresses achievable valuations. This is particularly true for US renewables, where uncertainty around potential tariff escalations and shifting policy has further dampened buyer appetite in an already cautious market. This has made it extremely difficult to secure acceptable valuations or complete disposals within a reasonable time frame.
Having initiated a formal sales process of Onyx, led by a leading M&A adviser in 2024, the Company received a good number of initial bids in January 2025. Selected bidders were then taken through to the second round for management presentations and due diligence. The process was nearing a conclusion with final bids expected in April 2025, when market uncertainty driven by the prospect of US tariff conflicts reached heightened levels. As a result, these parties were unable to make final bids in line with our timetable.
The sales process has since been modified to include alternative options that are designed to release cash and reduce debt from Onyx and its operational assets. We hope to update shareholders in the coming months.”
2. Big question about how much Onyx is really worth despite “significant capital Invrstment during 2024 in Onyx.”
This is another issue with these Trusts; that substantial investment some of their holdings need,
3. Any proceeds from the sale of Onyx will be used to pay down debt….that’s good. But also to start a buyback programme. That’s bad imo. Trust after Trust have been buying g back heavily to reduce the big discounts only to see the discount stay just as wide or widen even further!
4. DEBT. This looks a real concern. Debt level has increased even further to £626 million (that increase mostly because of further funding for Onyx and RED-Rochester. If the price they finally get for Onyx disappoints as the delayed disposal suggests it will, it could be a lot of money spent for very little returned.
5. And note this!
“Whilst TOTAL DEBT LEVELS ARE CLOSE TO THE COMPANY’s GEARING LIMIT (my capitals) this is being closely managed. But how is it being closely managed? They don’t explain.
So theres a clear chance of a shock share price hammering bad news update ahead.
Despite all this and other doubts, I’m going to risk continuing to hold. There is a potential big plus point near the end of the statement. After bemoaning the high discounts and lack of investor support for so many of the Renewables Infrastructure Trusts in the always important “Outlook” section, they then say this
“We are considering all strategic options to deliver value for shareholders.” They are going to say more on this in “the coming weeks.” Note the “weeks” for this potential good share price lifting news, compared with “months” for news on Onyx sale.
Other Trusts might well be doing and thinking the same. I.e high chance of sector consolidation and bids ahead. And doesn’t this, along with such big dividend yield while we wait, make some of these Trusts well worth holding?
Many thanks for this Ragged. Someone is misjudging the value proposition here quite badly, and you give me further grounds for believing that on this occasion, it may not be me! Not sure if I'll be adding though, since I already hold quite a few.
Market seems to be reappraising the risk at SDCL Efficiency Income Trust (LON:SEIT) ? Up 5.5% today, which puts it back where it was last December. It's also broken well up over its 200sma. Times like these I wish I had more confidence in my own convictions! At 4% of the Bruciefolio, I'm still 12% down on my book cost, which is about the value of the dividend!
Not sure you were wrong Brucie in not being more confident about Sequoia Economic Infrastructure Income Fund (LON:SEQI) ahead of this bounce, bearing in mind some of the negatives (to counter the also strong positives posted here) I covered in a post yesterday. By selling at a loss on those doubts at 57p I’m only in profit now (after buying again at 46p) thanks to the positive market reaction to their Results.
Don’t know whether you also still hold Henderson Far East Income (LON:HFEL)? If you do isn’t it reassuring that because it continues to trade at an undeserved premium they are able regularly to issue more shares? This issuing of new shares while at a premium means they are raising more cash for new investments. IF and it’s a big IF, they invest that money well, NAV performance could at last improve.
Note that the very successful Rockwood Strategic (LON:RKW) trading at a deserved premium has increased the NAV from £64.3 million to £96.6 million and increased the share count by 24.5% thanks to issuing new shares while trading g at a premium . (See paragraph 5 from the Highlights section I’ve pasted below).
Highlights
- NAV Total Return performance in the twelve months to 31 March 2025 of 21.0% to 248.79p/share*, which compares to a decline in the FTSE Aim All-Share of 8.2% and a rise in the FTSE Small Cap (ex-ITs) of 3.4%.
- The Total Shareholder Return in this period was 20.8%*.
- NAV Total Return performance in the three years to 31 March 2025 of 54.5%, which compares to a decline in the FTSE Small Cap (ex-Investment Trusts) of 6.6% and a decline in the FTSE Aim All-Share of 34.6%. The Total Shareholder Return in this period was 78.6%*.
- Maintained price of shares at an average premium to NAV of 2.9%*.
- Significant investor demand resulted in issuance of 7.6 million new shares, increasing the share count by 24.5% and, alongside performance, growing NAV to £96.6m from £64.3m. NAV has grown 135.6% in the last three years.
- Recognition of the strategy's success through multiple industry awards, including Best UK Smaller Companies in Investment Week's Investment Company of the Year Awards; Best UK Small Companies Trust in the Citywire Investment Trust Awards 2024; and Best for UK Exposure in QuotedData's Investors' Choice Awards.
Well, I decided to sell out of my smallish holding in Sequoia Economic Infrastructure Income Fund (LON:SEQI) today after only holding it a small time.
There are many different views on this trust - many of them well written on here - but I just felt that there were as many risks as there were opportunities and decided I would look elsewhere - luckily made a 7-8% profit on my two holdings.
I had already sold out of Henderson Far East Income (LON:HFEL) a few days ago.
I am now looking at some bond/income funds to hold some cash in for a few months until I decide to potentially make a withdrawal from my pension. Plenty of things to look at across both funds & trusts, so I might come back with a few thoughts in the next few days - likewise if anyone has any good idea please let me know.
Interesting, thanks, Ken. I did reduce my Henderson Far East Income (LON:HFEL) from overweight, but still retain about 2.5% position. Rockwood Strategic (LON:RKW) does look good but sadly falls outside my income remit. Markets are being kind to us all, I suspect, even the longsuffering Bruciefolio, which is now up over 10% YTD.
I'm very happy BTW with holding and adding Sequoia Economic Infrastructure Income Fund (LON:SEQI) , though I think you meant SDCL Efficiency Income Trust (LON:SEIT) .
I also suspect that CLS Holdings (LON:CLI) may be due a rerate given its heavy discount, reduced dividend and willingness to address the large debt.
Finly, I notice Liontrust Asset Management (LON:LIO) reported this morning, paying the current dividend, while sensibly rebasing future payouts. A punt, surely on recovery of UK shares, but also any move out of passive funds towards active managent styles. Could be one to watch.
Speaking of Sequoia Economic Infrastructure Income Fund (LON:SEQI) I see it also reported today. Dividend covered once, but says it's well positioned for lowering interest rates. Wishful thinking? Still looks like a solid infrastructure debt play. I hold.
Great write up posted today by Oakbloke on SDCL Efficiency Income Trust (LON:SEIT) - well worth a read.
Yes - I saw that last night. I did question my sell which i mentioned above, but I still see a few risks I am not comfortable with. I may regret it, but sleeping easy at night is important and whilst the risk scale on here may not be huge my principal reason for using IT's is to diversify and reduce risk - if I want to go higher on the risk curve I usually plump for a single-co stock - got a few of those.
I already have a few alternative investment IT's that are doing there "thing" so adding another was probably a mistake and I should have topped-up elsewhere.
I do like the Oakblokes write ups - they come thick and fast and are usually very in-depth - don't know how he finds the time.
I agree. Nothing at all wrong with ICG Enterprise Trust (LON:ICGT) , timarr. That is the other one we have in grandchildren's JISAs as long-term, sleep-at-night, total return holdings. I am comfortable in their ability to produce an average 12% return p.a. over 5 years.
Hi timarr & Ken,
Thanks for your responses, much appreciated. It's good to hear the thoughts of others on this board.
Trying to revert on some of the sensible points you both raised....
My own portfolio is doing well. Much helped by your posts on the MW board Ken so thank you for persevering. This investor finally listened! Aviva (LON:AV.) has been a real winner from both a SP and dividend perspective. I keep a 'life to date' dividend spreadsheet and Aviva (LON:AV.) is in the top 3 so I've got to be happy about that.
As far as Legal & General (LON:LGEN) is concerned, maybe the reasons why the SP has not taken off are because the balance sheet is much more complicated with almost certainly lots of derivative contracts to account for (after all it is a wealth mgt rather than insurance company) and the current CEO is relatively new. I think I'm right in saying the previous CEO was in place for 10+ years and investors knew what to expect.
I missed out on M&G (LON:MNG) again recently. I'm an idiot because I made a mental note after the Japan carry trade sell-off last August to buy as soon as the SP dipped below 190 pence but I didn't and now the SP is up above 250 pence so my loss. And now it may re-rate and trade at a higher price going forward. Well done to anyone who has done well on this one. I think it's a quality name to hold.
I liked what Graham had to say about Record (LON:REC) on Friday and read the final results myself. It's a much lower mkt cap than I would normally buy and Stockopedia says the dividend cover has fallen but apart from that, I like it as a lot of the revenues seem to be repeats and Record (LON:REC) has become a well recognised SME in FX hedging. I do recall though that the previous CEO was selling shares and I'm not sure where that has gotten to.
https://tinyurl.com/ykvek6cv
I'm a big fan of 'boring' stuff these days. My second biggest winner over the last few years has been Tesco (LON:TSCO) simply because I was looking for a safe(ish) yield back in 2020/21 and bought a lot of these. The yield has decreased but only because the capital gains have gone up! But I will have to sell at some point because a PE of 14 or 15 is starting to look expensive for a low margin supermarket. The ROCE surprises me though, higher than I thought it would be.
I have 2 shares / trusts that I'm under water on: Primary Health Properties (LON:PHP) because I bought too early in late 2021. Dividends have halved my paper losses on this so not too bad but it's a reminder to me not to rush into anything too quickly. And BlackRock World Mining Trust (LON:BRWM) as every piece of news on China seems to move the price of commodities, especially iron ore. But copper is the real driver as far as I'm concerned as electrification continues globally and the price is increasing all the time. Again, BlackRock World Mining Trust (LON:BRWM) dividends have been really good and keep me invested. I do wonder about increasing my holding for the long term. I think dividends are also in my top 3 but the large final dividend was more than halved this last time around.
AVI Global Trust (LON:AGT), Caledonia Investments (LON:CLDN) and HgCapital Trust (LON:HGT) are all in profit but I keep a close eye on them as the underlying assets either take some time to understand or are illiquid. This is where looking at the IFRS 13 disclosure in the annual report is important (at least for me). What does IFRS 13 do ? It takes the balance sheet listed out by assets and liabilities and re-states the same balance sheet in terms of liquidity under 3 levels:
Level 1: assets that are liquid and easy to value based on publicly quoted market prices. SSB eg: anything on the main listing of the London Stock Exchange.
Level 2: assets that are harder to value and can only partially be taken from quoted market prices but they can be reasonably extrapolated based on quoted market prices. SSB eg: I am guessing here a little but say certain shares listed on AIM. I've heard Christopher Mills say on podcasts that certain positions in North Atlantic Smaller Companies Investment Trust (LON:NAS) or Oryx International Growth Fund (LON:OIG) have been difficult to build because the supply is limited. If these shares are difficult to buy on a normal days, guess how easy or difficult they are to sell on downturns in the market ?!
Level 3: assets are difficult to value because the inputs into the price are unobservable ie: there is little or no market activity for the asset or liability being measured. SSB eg: a lot of private equity falls into this category because very few people can understand the true value of new ideas, new tech etc, after all, it's the future. there are read across from public markets but again, assumptions are made when determining private equity valuations.
Anyway, boring accounting lecture over! But something to bear in mind. And it was your reference to Vietnam that reminded me of this Ken. My thinking only but I just feel the market doesn't truly understand the underlying 20% to 30% of the private equity positions in VinaCapital Vietnam Opportunity Fund (LON:VOF) and the discount reflects this. I could be wrong (it's been know before!) but that is why I always preferred VietNam Holding (LON:VNH).
Talking of Vietnam, I signed up for The Weekly Vietnam podcast so let's see if it's any good. I listen to tons of different stuff on the way to and from work. Money Makers and Under The Banyan Tree are the only 'must listen' every week. Everything else comes and goes and that works well for me so I keep doing it.
timarr, thanks for the feedback on the REIT holdings, I try to hold positions with low LTV ratios. Yields can be cut so easily that I prefer to take a conservative approach. I probably miss out on some great dividends but I sleep reasonably well. Again, I'm struggling with the renewable energy trusts. If I had to go for one, it would Greencoat UK Wind (LON:UKW) but only because it's got history and I think I'm right in saying a high percentage of the assets are working and earning rather than under construction. Would I prefer to pick up something in the infrastructure sector ? Maybe International Public Partnerships (LON:INPP) ? Not sure. more research required.
Andrew McHattie on last week's MM podcast said he liked Templeton Emerging Markets Investment Trust (LON:TEM). Large mkt cap, small(ish) yield so a buy has to be based on potential capital gains. Again, I'm not sure about this, it's got a number of similarities with Schroder Oriental Income Fund (LON:SOI). Anyone like TEM ? Plus and minus points ?
One more thing: I was surprised by how well Rockwood Strategic (LON:RKW) has done. It's top of the UK small cap performance table for 5 years (which is roughly the time Richard Staveley has been the manager of this trust according to the AIC). I like the sector and own Aberforth Smaller Companies Trust (LON:ASL), again for the large mkt cap and the decent performance. But Rockwood Strategic (LON:RKW) easily beats it over 5 years! Well done Ken and anyone else holding this!
But compare both Rockwood Strategic (LON:RKW) and Aberforth Smaller Companies Trust (LON:ASL) to Blackrock Smaller Companies Trust (LON:BRSC) which has had terrible performance! Pretty much the same performance as a UK gilt!
SSB
A few further points following up your post.
Please post anyone if disagreeing with this but for BlackRock World Mining Trust (LON:BRWM) for all of us holding it, isn’t it best only to buy more on dips (like the recent one to 415p).
Doesn’t green demand combined with supply shortages almost guarantee a big and sustained Mining bull market ahead? But shorter term it’s China, and currently events in the Middle East etc that are driving the prices of the big miners……so isn’t there clear short term risk? But doesn’t the long term case look so strong that it justifies cashing in (if not already up to our maximum stakes) on dips?
btw……..the dividend yield varies from year to year largely depending on yields from their major holdings and will increase substantially in up years for the sector. e.g Rio Tinto (LON:RIO) paid about 20% in 2022.
Re Vietnam and the private Companies in their portfolio holding back the share price and also why the discount is so large. Yes. That seems to be how investors are seeing it. I.e seeing it as you do. But read this short section from a past MIDAS tip to see that they have a great record with the private Companies they held that went on to become major Vietnam companies. Hence I’m very happy continuing to hold VinaCapital Vietnam Opportunity Fund (LON:VOF) .
Here’s that section from MIDAS (I don’t rate Mail MIDAS writers but that doesn’t detract from this section). Sadly though, Andy Ho, quoted in that article died suddenly last year. Maybe his loss is also behind the recent dull performance.
“In many cases, Ho begins to invest in firms when they are still privately owned. Extensive checks are carried out on these businesses to ensure that growth plans are robust and sustainable.
If an investment ensues, Ho and his team often take board positions so that they are actively involved in the companies’ development. Over time, these firms are either sold, at which point VOF receives a share of the proceeds, or they list on the Vietnamese stock market, at which point VOF becomes a major shareholder.
The approach has delivered consistent rewards. Today, 80 per cent of the quoted companies in VOF’s portfolio began as private investments, which have been transformed into major corporations.
Construction group Hoa Phat, for example, was a private company valued at $400million (£315million) when Ho first invested in the business in 2007. Today the group is one of the top ten listed firms in Vietnam, worth more than $5billion.”
Greencoat UK Wind (LON:UKW) . Stupid me probably ….but Wind Trusts don’t appeal simply because they are so reliant (presumably) on….WIND! What am I missing by avoiding them?
I don’t hold Rockwood Strategic (LON:RKW) but do check out their major holdings for potential new buys. This Trust is so successful that surely a lot of investors will be doing this. I.e a bandwagon effect. e.g I bought Capita (LON:CPI) as great 1 year+ lockaway recovery share. Now that Rockwood Strategic (LON:RKW) also see it as a recovery share and have been adding, the price has recovered far sooner than it might have done if not getting commentary by RKW.
Finally, thanks for your generous comments about my posts on MW and influencing your switch (I think,from memory) from early stage hope shares to the sort of shares and Trusts resulting too in your great posts now. What we all want to see now is a lot more Investment Trusts and sectors starting to perform very well again, even without bids to lift their prices.
Well, Ken, about Greencoat UK Wind (LON:UKW) you are missing out that the wind is very reliable over time. See https://www.metoffice.gov.uk/research/climate/maps-and-data/location-specific-long-term-averages/uk. Greencoat UK Wind (LON:UKW) has 49 generating assets, quite widely spaced onshore and offshore UK, with plenty of inflation-linked contracts enabling them to pay a dividend increasing with RPI. In crude terms, the wind could be considered more reliable than commercial property, although the assets themselves can't easily jump in value.
And by the way, https://www.proactiveinvestors... Greencoat UK Wind (LON:UKW) will have a tailwind right now. Wish I'd bought more at 114!
Investor meet Company meetings next week.
MOBIUS INVESTMENT TRUST PLC
Investor Presentation
24th Jun 2025 at 11:00am BST
EUROPEAN ASSETS TRUST PLC
Annual General Meeting
24th Jun 2025 at 3:00pm BST
NEWRIVER REIT PLC
Investor Presentation
24th Jun 2025 at 11:00am BST
UTILICO EMERGING MARKETS TRUST PLC
Investor Presentation
25th Jun 2025 at 10:00am BST
ROCKWOOD STRATEGIC PLC
Full Year Results
25th Jun 2025 at 10:00am BST
SEQUOIA ECONOMIC INFRASTRUCTURE INCOME FUND LIMITED
Annual Results to 31 March 2025
26th Jun 2025 at 10:00am BST
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
Annual Results
26th Jun 2025 at 12:00pm
And on PE Trusts, I have sold down some of our Oakley Capital Investments (LON:OCI) on concerns of them being held back by Time Out, although I admire their very firm strategy.
But then, I increased in CT Private Equity Trust (LON:CTPE). While Hamish Mair may not be there forever, you just need to see a couple of his presentations to know you are buying a nice cup of Ovaltine, comforting and sensible and oh, outperforming the FTSE All Share pretty much always (https://www.trustintelligence....). It is hugely diversified, does co-investments as well as fund PR managers. It is a brilliant Steady-Eddy and really should not be at a 35% discount, when it also stands at 6.2% yield with an upward-only ratchet that has a 1.5year reserve. If a reliable 10% p.a. is OK for you, take the Ovaltine and have a relaxing sleep!
And my racier one is Apax Global Alpha (LON:APAX) , because I don't understand how it deserves a 40% discount to a relatively diversified NAV with a global strategy around boringly essential businesses, with a 5.5p div per 6 months. Tell me, I'm mad, but if this fails its discontinuation vote eventually most of its holdings could, if necessary, be picked up by other Apax funds, I believe, for immediate value accretion to them. Look at https://www.apaxglobalalpha.co...and https://www.apaxglobalalpha.co...
Opinions very welcome.
Interesting Ragged, will look at Apax.. I am rather more positive on OCI and not so concerned about Time Out.
Hello, all. Thoughts on renewable energy/infrastructure this week:
I am perhaps a little frustrated not to have been in Downing Renewables & Infrastructure Trust (LON:DORE) this morning, as, on reflection, a takeover from its 25% shareholder was ever more likely. I think those of us concerned about deeply discounted alternative ITs should be looking harder at their major shareholder lists. A 'subscale' Trust like this is in the firing line, and high-div, high-discount players are all 'in play' really. (At least my small, speculative holding in bombed-out Liontrust Asset Management (LON:LIO) gets a bit of an uplift from it...)
I watched the NextEnergy Solar Fund (LON:NESF) presentations this and they have to be involved in sector consolidation this year, either by taking one over or Next Era Capital organising a buy-out. They are essentially starved of growth capital in any meaningful form, but happy to maintain the div (not increase, mind). I'm not bothered, as 11.6% in annual return is fine for me as a bond proxy anyway. And a first quarter of higher-than-average insolation will help that. But the frustration of Manager and Board are clear.
And the Gore Street Energy Storage Fund (LON:GSF) results were reassuring if not spectacular. At least Trump has not scotched the ITCs available for them to sell ("Big Rock is nearing an agreement for the sale of ITCs."). A 1p final div is confirmed and 3p more when Big Rock ITCs are sold. This is understandably delayed, and now Dogfish and Big Rock are commercially deployed, they should be generating income to underwrite at least 6p of div for next year, if not 7p. We will continue to hold, hoping for 7 in 2026, but again, if that is not forthcoming and the discount lingers, I think its days are numbered. This would be a shame, as anybody involved in clean energy now accepts that large batteries unlock efficiency for solar and wind.
I think most of these Trusts have had a small bump up this morning because of the the Downing Renewables & Infrastructure Trust (LON:DORE) takeover. But I don't actually want the capital gain. I didn't want Atrato ROOF to be taken private last year. At this rate there won't be a way for PIs to invest in renewables, which might make them think it doesn't matter or is only for 'fat cats' and therefore to be opposed.
Hi raggedtp
I dipped in and out of NextEnergy Solar Fund (LON:NESF). All of the renewables trusts are having to sell assets to fund other projects as they can't raise funds while trading at serious discounts to NAV. However, I felt NESF was selling the crown jewels to fund the dividend, which made me uneasy. It'll be bid for on Monday, you mark my words ...
I also hold Apax Global Alpha (LON:APAX) which looks too cheap. As Graham pointed out this week some of the PE funds do look bargain basement, although the only other one I hold is ICG Enterprise Trust (LON:ICGT) - also cheap. Haven't looked at CT Private Equity Trust (LON:CTPE) , will take a look.
timarr
Ceiba Investments (LON:CBA) Has anyone looked at this in depth ? Trading on a huge discount, but as it invests in Cuba and the USA under Trump has put it back on the State sponsor of Terrorism block, things look gloomy. High inflation, creaking financial systems, the young emigrating and tourism down. Gemini concluded " In summary, Cuba's economic situation is dire, marked by severe shortages, high inflation, and a struggling tourism sector. While there are efforts to boost tourism, particularly from new markets, the persistence of internal structural issues, US sanctions, and external factors make a rapid and sustained improvement in tourism numbers highly uncertain."
So looks one to avoid, unless there is a positive out there. All I could find was an increase in visitors from China and Russia?
I had never heard of it until your mention yesterday. Had a quick looked and decided to run a mile - very niche, and whilst I appreciate the discount is huge I am not sure what the catalyst is for reducing this and/or getting any growth in the NAV.
I tend to be quite conservative in my choice of investments with just a few small punts for spice, but IT's aren't normally where I get my spice and this would be a little left-field for me.
Kevin, I agree can see nothing to suggest an improvement unless it was wound up and not sure who the buyer for uban assets would be- Chinese or Russians maybe?
I vaguely remember looking at this about 10 years ago and concluded it was a bit too murky and niche, even if it looked optically cheap. Would be sceptical that value ever gets unlocked on this one, but you never know.
I read the update from Syncona (LON:SYNC) this morning with interest. I have taken a small position today as they are planning to take clear action to realize value for shareholders given the persistent, wide discount and falling share price. Following struck me
The Board plans to:
"move to an orderly realisation of its portfolio assets, with a view to achieving a balance between returning cash to shareholders in a timely manner and maximising value".
"also exploring options to accelerate realisations, which may include a sale of a small portion of its interests in certain of its portfolio companies at a modest implied premium to the current share price and at a discount to NAV."
There is a growing trend towards management action at a number of Trusts which have performed badly or sit on large persistent discounts.
I have done quite well recently by taking small, less than 2% of portfolio, positions in Trusts which are subject to heightened management action. Such as Harmony Energy Income Trust (LON:HEIT) and Gore Street Energy Storage Fund (LON:GSF) in the renewables sector, and Hydrogenone Capital Growth (LON:HGEN) in the growth capital sector. It's been a time to be nimble, in and out of Trusts that are making strategic changes
Old School, I will be following you in buying SYNC. Looks a a reasonable prospect of upside and with Wellcome (30% shareholder) behind it I have confidence in a decent result of the wind down.
Looks like another decent set of results from Cordiant Digital Infrastructure (LON:CORD) with NAV on a continuing upward trend for this core plus infrastructure outfit. Share price up on a down day so market seems to like. It pays a lower divi than many infra trusts but I guess that is the price you pay for the better growth prospects. As may have been said before this seems run very effectively - the polar opposite of Digital 9 Infrastructure (LON:DGI9.
Fidelity Index World and New Capital Swiss Select are both hold by us in ISAs with Hargreaves Lansdown. Fidelity Index world is listed by Yahoo Finance; New Capital Swiss is not: they do list an American version. I am trying to coordinate Stockopedia folios with my own Google Finance spread sheet which automatically updates all our 100 stocks (except a Hungarian one) but not funds. I can do that manually with my spreadsheet but Stockopedia does not allow for manual introduction of a fund or stock they don't know, Furthermore Stockopedia won't recognise ADRs. As we have two U.S.-based accounts (one a Roth IRA recognised by treaty and HMRC regs as tax-free in both countries because funded with after-tax U.S.-source wage income) it's a nuisance to create an artificial equivalent for the U.K. or European stock which will never exactly coincide with the ADR even when we set up a synthetic share quantity and price. The usefulness of Stockopedia folios is thus limited.
I gave up on Stocko PF's - and now use Sharepad which is way more versatile for all stocks & funds - including most mainstream overseas stocks.
I have ShareScope as well but have yet to get much value from it: it will take time to get used to it. I've had Seeking Alpha for years and made large gains for 2 years with their Alpha Picks but the US market changed strting 6 January and I moved out of most US stocks, saving a 10% forex loss. For the UK my first stop is Paul Scott on Subst*ck. The advantage of Stockopedia is that it scores momentum and other ractors comparably to SA (which does not rate non-US stocks) so the learning curve is less. In a rising market the cost of these services is trivial. Neither UK firm knows how to deal with ADRs and both miss many funds which limits the value of their portfolio tools since we have brokers and investments inside and outside the UK. Even when there s a UK stock or fund that Hargreaves trades ShareScope & Stockopedia don't necesssarily cover it and don't respond to queries.
ShareScope has huge functionality and I used it for 2/3 years. However, I've ended up dropping it and using Stockopedia instead and find my results have improved significantly since. I suspect a lot is down to your temperament, but the amount of data on ShareScope, particularly in realtime, led me to overtrade and often lose sight of the woods for the trees. I find it much easier to think clearly, set a strategy and stick to it with Stockopedia.
I similarly use sharepad and find it great for virtually all my holdings. I love the graphs and annote the graph for each stock I hold in various portfolios. I draw a line to represent buying price and a different colour to indicate selling price. Also add written details of dividend rate I receive, frequency of dividend and amount I have invested ( at buying price). I can see at a glance what each stock is doing and am able to scan through all my holdings relatively quickly. I also find it great to help me time purchases / sales using some of the available indicators.
It’s good to see Graham Neary’s increasing interest in Investment Trusts. Guess most here have seen his post on PE Trusts?
https://www.stockopedia.com/co...
Unfortunately some of the poster replies seem to be giving inaccurate figures and information about fees with some extraordinarily high figures got from ii in one reply. Maybe those figures are correct?
I’m not clued up on fees so can’t correct any inaccurate info there, but could someone here who is, post there to correct if there is any off putting information on fees?
Apax Global Alpha (LON:APAX) is one I hold across portfolios on account of both dividend an d discount.
Apax Global Alpha | The AIC
It was also the subject of this updated note from Oakbloke back in May this year:
APAX relax - The Oak Bloke
I'm glad to see some mention of it in Graham's note on PE.
Fees can be the usual annual plus the bonus percentage if a certain return is achieved. I tend to ignore them and just accept part of the costs of investing in a sector unavailable to all but the wealthiest P.I
Thanks Charles, but I was referring to this post from PeterT on that thread. He wants to know if the charges are really THAT high. So, are they? And if they aren’t then isn’t it going to put people off investing in Investment Trusts seeing such high charges? Here’s his post.
“Thanks for this Graham.
Am I right in thinking there are very high annual fees involved with holding many of these and, if so, do you have a view on this?
Just checking on Interactive Investor it shows : LMS 7.12%, JZCP 6.67%, SIHL 4.85%, BOOK 2.79%, CTPE 2.81%, PEY 5.43%, APAX 3%, NBPE 4.16%, PPET 1.6%, OCI 8.84%, ICGT 1.92%, PIN 0.63%, HVPE 0.54% & HGT 5.82%.
(I hold PIN)”
I see- thought it was an odd question from you !!
Migo Opportunities Trust (LON:MIGO) From Citywire "This change will see a new price structure introduced, with the annual management fee falling from 0.65% to 0.35% and a new performance fee of 15%, once a hurdle has been met.
Overall fees payable by the company in any year will be capped at 2.5%, of the lower of MIGO’s market capitalisation or its net asset value (NAV). AVI has committed to reinvest 25% of any performance fees paid into MIGO shares."
They also apparently will cap market cap at £150m. They plan to reduce number of holdings and become more activist.
I have never held MIGO and would avoid now. I can pick trusts on a large discount , a performance fee of 15%, whatever the benchmark, is madness for investing in listed Trusts and at a max of £150m they will have a small pond to fish in and be active.
Had just read this myself and was about to cut and paste the link;
https://citywire.com/investmen...
I had avoided Migo Opportunities Trust (LON:MIGO) for many years as its performance is very poor - 1/3/5yrs = -1%, 11%, 55% TR.
Nick Greenwood the long-term manager (who is now moving on) talks a very good game in all the interviews I hear him on Money-Makers, but his performance leaves a lot to be desired. Too many trusts in the PF, spread too thinly (which I guess you could also throw at me and my performance :-)), but I think it needs to be a bit more concentrated with more conviction to make a difference.
MIGO - They're going to find it hard to reduce a lot of those smaller, illiquid holdings - I would wait until that is out of the way before considering this one.
Stunning Results update from Rockwood Strategic (LON:RKW) today. It’s deservedly trading at a premium enabling them to issue new shares and substantially increase the NAV as a result of investing that money successfully. See this section from their highlights section today:-
“ Significant investor demand resulted in issuance of 7.6 million new shares, increasing the share count by 24.5% and,alongside performance, growing NAV to £96 .6 million from £64.3 million.” (WOW!)
Here is the first part of the Highlights section:-
Highlights
- NAV Total Return performance in the twelve months to 31 March 2025 of 21.0% to 248.79p/share*, which compares to a decline in the FTSE Aim All-Share of 8.2% and a rise in the FTSE Small Cap (ex-ITs) of 3.4%.
- The Total Shareholder Return in this period was 20.8%*.
- NAV Total Return performance in the three years to 31 March 2025 of 54.5%, which compares to a decline in the FTSE Small Cap (ex-Investment Trusts) of 6.6% and a decline in the FTSE Aim All-Share of 34.6%. The Total Shareholder Return in this period was 78.6%*.
- Maintained price of shares at an average premium to NAV of 2.9%*.
- Significant investor demand resulted in issuance of 7.6 million new shares, increasing the share count by 24.5% and, alongside performance, growing NAV to £96.6m from £64.3m. NAV has grown 135.6% in the last three years.
- Recognition of the strategy's success through multiple industry awards, including Best UK Smaller Companies in Investment Week's Investment Company of the Year Awards; Best UK Small Companies Trust in the Citywire Investment Trust Awards 2024; and Best for UK Exposure in QuotedData's Investors' Choice Awards.
Post Period End
- NAV Total Return performance since period end to 13 June 2025 of 10.0% and year-to-date of 5.8% to 273.59p per share.
- Realised gain in National World Plc due to a successful takeover offer generating a 73.2% IRR.
- Entry into FTSE All-Share Index and FTSE Small Cap Index, due to increased scale.
- Further issuance of 3,837,000 new shares, increasing NAV to £116.7m as at 13 June 2025.
- Fund is the No.1 Small Companies Investment Trust over the last 3 and 5 years.
Noel Lamb, Chairman of Rockwood Strategic plc, commented:
"These results speak for themselves. Rockwood Strategic is clearly demonstrating that its differentiated approach works. We are delighted that through our issuance programme many new investors are becoming shareholders and we are able to continue to scale the Trust and deploy capital into this overlooked part of the UK stock market."
Adding to the previous post following Rockwood Strategic (LON:RKW) Results today. I don’t hold because for UK smaller Companies I opt for single shares ahead of Trusts. But! Where Rockwood Strategic (LON:RKW) is very useful is the detail they give about their key holdings. Bearing in mind what a stunningly successful Trust this is, it can alert us to attractive share choices.
e.g a while ago I posted here about Capita (LON:CPI) (I hold) looking a classic recovery share, and saw that Rockwood hold and have increased their stake. Capita (LON:CPI) updated earlier this week, and the share price after an initial dip, renewed its recent strong recovery. Here’s the Rockwood commentary on it and then below it the link for the full Results . Scroll down to their top 10 holdings, and below those is their commentary on all their key holdings:-
Capita 4.0% Net Assets
Cost: £4.60m, Value as at 31 March 2025 £3.89m, Market Capitalisation £235m
This outsourcing business was a former FTSE 100 constituent but had a spectacular fall from grace and is now valued at £235m. The business has a completely new senior management team who are targeting to improve operating margins form c.4.5% to 6-8%. There are two divisions. The first is focused on the Public Sector where it's the incumbent administration provider of a range of government services such as the Congestion Charge, TheStudent Loan Company and the TV License. The second division is more private sector focused and has a barely profitable contact centre business which is a key area for improving performance relative to the levels achieved by competitors. In both divisions, significant cost is being taken out and new technology harnessed (in particular the use of AI) to improve productivity, efficiency and profitability. The company had been saddled with huge amounts of debt which have now been paid off through a series of business disposals and also had a significant funding requirement for its pension fund, which has also been addressed. It is clear that most investors are sceptical of the likelihood of improved performance, which is reflected in very low valuation multiples. However, we expect a significant increase in free cash flow generation when the restructuring concludes in 2026 and 2027 justifying a large re-rating. A full break-up of the group may be the end-game and in that regard it is important the company exits its loss making closed Life & Pensions activities, which would enhance free cash flow conversion significantly.”
https://www.stockopedia.com/sh...
Totally agree Ken. Every time I have given up on small cap investing and gone for a fund it has ended in tears - too much dross in a big PF of small co's.
Whilst I have plenty of funds & IT's I still generally like to pick my own smaller co's, but I tend to invest smaller sums into them. If I were to go for the 3-10% holding size in smaller co's I would not sleep well as I still get the odd poor performer that has a disaster and drops 30-50%.
I tend to hold 1-2% sized holdings - and appreciate this level is unlikely to move the dial, but I am not after rocket-fuelled starships - a small 6%pa gain will do me fine and I think I can achieve this whilst having the intellectual challenge of researching my own small & mid caps and having 50%+ (and growing) of my PF in funds/IT's.
There are enough great commentators around on this site & others to be able to highlight great stocks that once you have done your own due diligence provide a reasonable chance of a positive return.
Thanks for replying Kevin. For anyone else reading this, it’s just a ramble that can be given a miss.
Though preferring my own smaller company choices to any of the UK smaller Companies Trusts, I hold very few at present, I went for Cavendish (LON:CAV) and Capita (LON:CPI) for their strong recovery potential and both are doing well…..for now.
It’s years ago that I gave up on rubbish hope shares like 80 Mile (LON:80M) (formerly Blue Jay Mining) and Eden Research (LON:EDEN) both as you know heavily promoted by Mike Walters and unfortunately a lot of clueless and sycophantic posters too, who wouldn’t have a word said against those shares even when down 98%! And they’re down even more since Mike closed his site.
If going for a UK Smaller Companies Trust it would be Rockwood Strategic (LON:RKW) on a dip like the one in April. Outstanding performer and their write ups on the shares they hold are so good too.
I’m happier holding several of the big dividend payers in the Renewables Infrastructure sector following the bid news for Downing Renewables & Infrastructure Trust (LON:DORE) today. Signs already that it could light up the sector. . Didn’t hold because the dividend was “only” 7%. Says something about the yields there when 7% is too low!
I hold Schroder European Real Estate Investment Trust (LON:SERE) in the Europe REIT sector is still on a 30% discount. Have expected a bid for ages.
Agree Charles. I think top of the list must be Pershing Square Holdings (LON:PSH) with ultra liquid holdings and a huge discount to NAV. Going to be huge pressure to either wind it up or, more likely, tip it into a US vehicle that trades at NAV.
Let us hope Donald, done well with PSH already and an exit at NAV would be a good outcome. I am less bothered than others and companies leaving the market- it reflects market inefficiencies and pretty sure in time new companies will float, interesting trusts launch. An investment trust in AI companies for example would be interesting.
I'm involved in an AI startup and the area is fascinating. We are raising funds and speaking to VCTs at the moment, but the crazy thing with AI is that you can build and run large parts of the business using AI. The productivity gains achievable when you bake AI into the company from the start are incredible.
There's plenty of comment out there about the next unicorn will only have 5 employees, and while that may be a touch of wishful thinking, I do think the funding environment will change massively. Instead of Pre-seed, Seed, Series A, B, C etc with different funders coming in as the company gets bigger, I think AI opens the door to "once and done" funding. It will be interesting to see how companies like Augmentum Fintech (LON:AUGM) and Molten Ventures (LON:GROW) adapt, as waiting until Series B may no longer be an option. If you can raise £10m at Seed and use AI effectively, there's a good chance you never need funding again.
Sounds interesting.
Hi Donald
At the moment you can label a dead dog as an AI enabled home companion and get VC money. It's not quite as stupid as the blockchain boom a few years ago and an order of magnitude less crazy than the dotcom boom, but it's getting there.
However, the point is well made, if you start AI enabled and build your data sets then you will get significant gains as time goes on. The problem is if you're reliant on third-party data without spending a lot of time and money analysing and cleaning it - that's a one way ticket to an eventual crisis. And if you're small to start with where else do you get the data?
AI built on consistent domain specific data can produce very high degrees of accuracy. However if you were to (say) try to develop new drugs using AI using public data sets you'd probably get as far as the first death on your first set of trials before you went bust, got sued and went to jail.
AI is stunningly powerful and getting more so, but keeping it on the straight and narrow is the next generation's job creation scheme.
timarr
Vietnam Enterprise Investments (LON:VEIL) had over 40% at their AGM vote for the company to be wound up by the end of 2027. Given that it trades at around a 20% discount, if it was wound up at NAV, that would equate to a 25% uplift over 2.5 years. I think it's going to become increasingly difficult for managers to hold onto funds trading at discounts above 10%.
Donald, That may be the case. Though I think what GSF had done- well partially- what I would like is for managers to charge fees on Market Cap rather than NAV which would be a positive move. More complex trusts like infrastructure and PE may have to have bigger discounts, but for a general investment trust with no USP I agree it will be hard. A lot disappeared or changed investment policy in the 1980-early1990's shake up of the trust sector.
Gore Street Energy Storage Fund (LON:GSF) Pleased to see that the mangers are going to chrge a fee based on market cap and nav, a 50:50 split. Something I mooted to Hydrogenone Capital Growth (LON:HGEN) and Augmentum Fintech (LON:AUGM) in my emails to them, so maybe this will become a new theme in investment trust managers. Certainly would focus their attention on the discount, which can of course be reduced by strong performance as well as improved communication with existing and potential shareholders.
The board announced a 1p dividend and a special of 3p once the ITC from Big rock received. The board said dividend policy in the future will be based on financial performance not a fixed policy. I need to look at the cover when full results published July 17th.
Excess proceeds from the sale of ITC’s will be used to pay down the RCF.
Pleased to see the Gore Street Energy Storage Fund (LON:GSF) share price increase after their update today. Also pleased that the shareholder consultation resulted in most preferring dividends. Hope Trusts preferring buybacks over dividends see this and take note:-
“Shareholder Consultation, Future Dividends, and Capital Allocation and Strategy Update
In May and early June, the Company's Board conducted a comprehensive roadshow with shareholders to seek feedback on the Company's current market position, allocation of its cash balance, US ITCs and use of leverage.
Options discussed included investing for sustainable growth, dividends, share buybacks, and debt repayment.
A majority of investors consulted prioritised the distribution of ITC proceeds to shareholders and therefore the payment of dividends.”
I hold Gore Street Energy Storage Fund (LON:GSF) and several other big dividend payers in the sector.
There’s an article in Investors Chronicle this week on the Infrastructure sector. I don’t subscribe but was able to read the full article.
Here’s a key section of the article and the link for the complete article:-
https://www.investorschronicle...
“Much has been written about the potential for M&A activity in the sector, and indeed some things are moving, with BBGI Global Infrastructure (BBGI) and Harmony Energy Income (HEIT) both in the process of being taken private. Both offers were above or near NAV, which is encouraging for the rest of the sector; there might well be more bids to come – many investors who bought in during better times will certainly be hoping so.
One alternative would be trusts merging to create bigger, more liquid vehicles. The wealth management industry (a big buyer of investment trusts) has also undergone significant consolidation in recent years; bigger firms tend to avoid trusts below a certain market capitalisation, so joining forces could in theory help close discounts.
But this is not a given, and either way consolidation is proving easier said than done. Foresight Solar’s (FSFL) board said last month that it made a formal proposal of consolidation to another company (Bloomberg later reported this was NextEnergy Solar (NESF)), but that it had been “unable to ultimately advance” and discussions were terminated.
Alex Ohlsson, chair of Foresight Solar, believes something will eventually give. “The generalised disposal of assets among renewable infrastructure investment trusts to return capital to shareholders will result in a smaller sector with fewer participants,” he says. “The board believes consolidation will be a major feature in the year ahead to create larger, more liquid vehicles.”
Numis analysts say shareholders appear divided, with some favouring the creation of larger, more liquid trusts, while others would like a partial cash exit where possible. “We continue to believe that M&A is increasingly likely given the prevailing discounts, but clearly deals are hard to conclude,” they note.
In some cases, contrasting shareholders’ views may have left boards reluctant to push for more radical solutions, with the focus being instead on buying back shares where possible, holding continuation votes and increasing marketing efforts. The trusts have also been moving towards management fee arrangements that are at least partly based on market cap rather than NAV, which should help better align their interests with those of shareholders.
But mergers are generally tricky, particularly when the underlying assets are illiquid, as in this sector. “M&A is always difficult… unless someone turns up with a cheque,” says Murphy. He notes that there are a number of complicating factors, including management contracts and the fact that some management groups in the sector are quite small, so a single trust might be a significant part of their business. Egos can also play a role – nobody wants to be the one being ‘eaten”’
Reasons for hope
All of the above does not mean that the sector is completely lacking in opportunities. One reason for optimism is lower base rates, although cuts have been happening at a fairly slow pace of one per quarter.
If competition from fixed income is one of the causes of the discounts, rate cuts should arguably help these trusts. Meanwhile, their NAVs have also been hit by increases in the discount rates used to value assets; but these should have at the very least stabilised, and might yet come down.
However, both factors are correlated to bond yields more than they are to base rates; and those yields have not eased yet. Yields on 10-year gilts, for example, are actually higher now than they were a year ago.
Meanwhile, the government’s push for new infrastructure projects might eventually trickle down to some of these trusts and give them a boost; although they are not at the forefront of this trend because they do not typically take on construction projects.
Some analysts have also suggested that with UK pension funds having to invest more in private assets, they could look at investment trusts – alongside the more obvious solution of committing to private equity and infrastructure funds dedicated to institutional investors. However, there might once again be an issue of scale and liquidity here, particularly as the pension industry itself is also headed towards consolidation; big pension funds will struggle to invest in sub-scale investment trusts.
For now, the strongest investment case for these trusts is the yields on offer. Patient investors can bag the income as they wait for M&A activity or for a recovery of the shares – but they should be aware the wait could equally be very short (if their trust gets bought) or very long. “I think the most important thing to focus on is dividend cover,” says Lockyer. “Make sure that there’s plenty of dividend cover so that investors can be sure of the yield and that volatile power prices don’t affect the income.”
Within the infrastructure sector, INPP and HICL are great for safe income and good yields. A more adventurous option is 3i Infrastructure (3IN), which Murphy notes is not looking particularly cheap (the discount was 9.9 per cent as at 6 June) but has a very strong record. “It is basically the most highly rated infrastructure fund, and that’s because it’s been so good and so consistent,” he explains.
Among the renewables, Lockyer likes The Renewables Infrastructure Group (TRIG), which he says is “well placed” and could easily be the one consolidating other trusts. It is trying to dilute its chunky exposure to wind assets, and could do so by buying one of the solar trusts, for example. Meanwhile, Murphy cites Foresight Solar as a relatively vanilla option on an attractive yield; he notes that most of its assets are in the south of England, and as such should not be impacted by the potential introduction of zonal power pricing (which would see lower prices in areas where there is more supply and less demand).
In case anyone hasn’t seen it, there’s excellent analysis of NextEnergy Solar Fund (LON:NESF) from Roland today on the Daily Stock Market thread. He also including comparisons with others in the sector. It helped with my understanding of this difficult to understand sector.
https://www.stockopedia.com/co...
Yes, concerning NextEnergy Solar Fund (LON:NESF) I was hoping for some views on this bb, though I suspect the pros (high and increased dividends) are negated by reduction in Nav, and further undermined by the generic opaqueness of this sort of situation. Against which the discount and once again, that very high payout - and then take away the number you first thought of!
I hold for the Bruciefolio, which has been doing quite well of late no doubt benefitting from some sectoral winds, or should that be, sunshine. SDCL Efficiency Income Trust (LON:SEIT) up again today I notice, and in financial, I seeM&G (LON:MNG) breaking up after the Japanese tie up.
We await the backwash from the ME though so far this has only boosted our holding in Serica Energy (LON:SQZ) .
I saw that Short Interest in Serica Energy (LON:SQZ) nearly doubled today. Not sure why when O&G appears to be a hot sector with the middle-east uncertainty ongoing.
Serica Energy (LON:SQZ) is a North Sea O&G producer - it had been one of my biggest winners in the past, but offloaded my final shares a few months back, although I more recently bought back into it when I felt they had become undervalued. Enjoying the current bounce, but will be quick to trade out if I feel things may revert - a few years back it went all the way up to £4.50 I think - and I watched it halve all the way back before I sold a lot of my holding..................
A very good dividend payer - I think it yields around 10% and supposedly this should be fairly secure.
NextEnergy Solar Fund (LON:NESF) update makes me ask why hold if the Divi, which is very generous, only matches the decline in NAV over the year. The share buyback scheme apparently added 0.5p to the NAV but doesnt seem to have done much for the share price. Is Foresight Solar Fund (LON:FSFL) a better bet in this area?
I think so. I sold partly based on the analysis in this Substack which gave me pause for thought . Good on the actual cash flow https://theoakbloke.substack.c...Also looking at Foresight it is higher quality on several measures which I think worth it for the 2% approx less in dividend . Shows in much higher Stock Rank
Schroder Asiapacific Fund (LON:SDP) Just had this report in my mail box https://mybrand.schroders.com/...
Molten Ventures (LON:GROW) (I hold) " Venture capital fund Molten Ventures (GROW) is in recovery mode after banking £135m from realisations over the year to the end of March." Citywire article
There were 162 posts for the whole of the May thread, we're now more than that for only half of June. Feels like we're moving into bubble territory!
Thanks for all the interesting and informative comments, please keep them coming! :)
Many trusts are looking very cheap at the moment and seems investors are increasingly looking at them. I assume the take-overs that have taken place have also alerted investors.
Hi SSB
A few views, in no particular order:
Always interesting to read your posts.
timarr
Hi timarr
Isn’t it the case that whilst it’s true that the gap between rich and poor in Vietnam is wide, doesn’t the same point apply to India only even more so? Both Countries are seeing a widening of that inequality but in India it’s widening faster still. This hasn’t stopped the Indian Sensex index going up 9 fold in the last 16 years along with very big gains for the Indian Investment Trusts. Not sure that inequality makes Vietnam an investment no? The monthly reports from the Vietnam Investment Trusts also suggest that there’s a very strong investment case.
So much for the market falls opportunity I posted about yesterday! Seems the markets are …..for now……pricing in no serious escalation and perhaps a quick end to it all.
Isn’t it the case that whilst it’s true that the gap between rich and poor in Vietnam is wide, doesn’t the same point apply to India only even more so?
This is true of course. I think the major differences is that this is a cultural thing in India whereas in Vietnam it's a consequence of the one party state - more so, seemingly, than in China.
But the real question is how Vietnam manages being stuck between China and the US. If the two world divide really happens they will be forced to choose, and with China just over the border there's not much doubt which way they'll fall.
But geopolitics and macro rarely dictate the direction of share prices, so you're probably correct even if I am, too :-)
timarr
https://www.ft.com/content/81c...
Interesting view on Vietnam.
Behind a paywall but I assume it was not positive ?
https://on.ft.com/4jUJ35Y
Not sure if this link will work?
'Vietnam risks being the trade war’s biggest loser. Does it have a plan B?
The south-east Asian country benefited hugely from US-China tensions, but the Trump tariffs strike at the heart of its economy.'
No still a paywall. But I get the gist and not something that would cause me concern re my investments in vietnam, there are many other factors suggesting a bright future. Follow the VietNam Holding (LON:VNH) substack , Craig posts some interesting stuff.
This article is a month old but probably covers much the same as that FT article.
https://woodenbroomhandle.com/...
Meanwhile the Vietnam index is continuing its current good run, and is up again today to the highest level for 3 years, This site is excellent for indexes and all commodity prices. I use it a lot. This link is for the Vietnam index along with brief commentary.
https://tradingeconomics.com/v...
And here’s the latest monthly update from VinaCapital Vietnam Opportunity Fund (LON:VOF) . Hopefully the Managers of the 3 Vietnam Investment Trusts are able to make changes to their portfolios (if necessary) to focus on Vietnam Companies least or not affected by tariff concerns.
https://vinacapital.com/wp-con...
I don’t recall much discussion of Z-scores on this thread. Does anyone use them and is there a handy source that calculates them for you?
AI Overview
Z-scores are used in investment trusts to assess whether a fund's current discount or premium to its Net Asset Value (NAV) is historically high or low. A negative Z-score suggests the fund is trading at a larger discount or smaller premium than its historical average, potentially indicating a good buying opportunity. Conversely, a positive Z-score suggests the fund is trading at a smaller discount or larger premium than its historical average, potentially indicating an expensive valuation. Understanding Z-scores in Investment TrustsHere is a link to z scores, citywires weekly round up https://citywire.com/investmen...
I do not pay much attention to them .
I think the problem with Z-scores is they implicitly assume that discounts will tend to revert in the future to their average values over the specified previous period (e.g. one year). This assumption is OK when it works, but there can be times when discounts do not "revert to their means" and the assumption is not then valid. For example, if an IT goes from a premium to a large discount to NAV over a couple of years, its Z-score would tend to indicate that it is "cheap" over those two years but it would keep on getting even cheaper and an investor relying on Z-scores might lose money on that IT.
Re Z Scores. Whilst I accept the reservations about the relevance of Z scores it would be nice to know of a regular source of Z scores and not have to rely on occasional stories in the press.
Z scores are a good starting point for checking on the "cheapness" of trusts. I also like to look at the share register and see if specialist IT investors, such as 1607 Capital Partners and City of London Group, have a stake. Their movements in and off share registers are another clue as to whether professional investors think a trust is "cheap".
Hi DarwenLad, the citywire website mentioned in Charles Mitchell's post has a weekly list of IT's latest Z scores..
Many thanks pka
I don't post so much these days due to work and family commitments but still enjoying the site and rec most of the posts. Some quality contributors here. Portfolio is going well this year and dividends up +9% year on year. I'm reasonably happy with that. Also happy that I added to some of my existing holdings back in April but maybe the rebound has been more than I expected given there are still a lot of ongoing 'issues' in the world. I'm going to add the full ISA allowance for 25/26 but no idea where to invest it yet, maybe just a Gilt until things become clearer.
I liked the recent Lee and the IC podcast, my notes below:
# How bad was the recent tariff related sell-off v previous sell offs ? Answer from JL is nowhere near as bad as the secondary banking crisis in mid 1970s!
# JL is fully invested, no spare cash at all.
# JL has limited liquidity to put into lower prices.
# Answer is to focus on dividends to create cash to buy more shares in undervalued holdings at lower prices.
# Remember there is no bell rung at the top or bottom of the market so don’t expect to buy and sell at those points. It's about picking up quality holdings are good prices.
https://tinyurl.com/yc7xjwrc
I liked the title of one of the MoneyWeek emails (KevinS1 also posted earlier in the week) but I think it should go further in that a better way to buy the market is to develop a list of really high quality trust and buy those in a sell-off. Ken, this is pretty much what you have said for a number of years and I 100% agree with it. Most of the time these days, I do nothing. And I'm fine with that. Anyone have any strong views on the list of trusts trading at big discounts ?
https://tinyurl.com/mutz2tpd
Ken, thanks for the reply on Vietnam. I have watched Our Guy in Vietnam and it reminded me of what a friendly and interesting place it was to visit myself back in 1999. A young, industrious population, I am now tempted to add to VietNam Holding (LON:VNH). The SP is down -15% over the last 12 months. Top 10 is approx 65% of the trust so very concentrated.
The HSBC Under the Banyan Tree podcast is good. Short and to the point but always interesting. I am trying to increase my exposure to Asia, mainly through Schroder Oriental Income Fund (LON:SOI) which I added to in late April/early May.
I really liked the recent episode entitled 'What to do with the world's largest cash pile'. Relevant points:
# Chinese retail investors have USD 22trn in savings. The savings rate increased during Covid. This cash pile is enough to buy all the real estate in the UK and France!
# Real Estate in China is recovering fast now.
# And Chinese investors are buying Chinese listed equities but mainly from the Hoing Kong exchange rather than those listed in Shanghai. SSB: The Communist party won't be happy about this because Shanghai was always supposed to be the new Hong Kong but I guess those shares listed on the latter exchange are just better quality and almost certainly have better liquidity.
# From a wider Asia perspective, Japanese investors are buying Indian equities. SSB: presumably for diversification ?
# The wider trend here is 'Asia buying/investing in Asia'.
# The elephant in the room is the current Chinese government's commitment to bringing Taiwan back under Beijing control by 2030.
https://tinyurl.com/32zwhymf
Schroder Oriental Income Fund (LON:SOI) reported half year numbers recently. Performance has been solid if not spectacular with cumulative returns as below. The one comparative that stands out is the last 6 months SP and NAV versus the benchmark; this is explained as a result of the trust being underweight China. The managers explain the recent good performance of the China market has been narrow and come from only a few internet related names which pay little or no dividends. Schroder Oriental Income Fund (LON:SOI) has larger holdings in some of the smaller markets in Asia but which have suffered from USD currency strength but do have more appealing valuations.
The Chairman talks about US tariffs (including 49% for Cambodia, 46% for Vietnam, 36% for Thailand and 32% for Taiwan). On the plus side, Asian economies remain some of the fastest growing in the world. We know all this but it helps to keep it in mind. The AIC says dividend cover is good and Kepler Trust is broadly favourable to Schroder Oriental Income Fund (LON:SOI) so I'll keep going with this one.
https://tinyurl.com/2dtr73nf
https://tinyurl.com/3ewcvtyj
I tend to trust REIT NAVs more than renewable NAVs simply because there are fewer variables.
Tritax Big Box REIT (LON:BBOX), Supermarket Income REIT (LON:SUPR) and Primary Health Properties (LON:PHP) are the only REIT type shares I hold. Swapped out of Schroder Real Estate Investment Trust (LON:SREI) and into Tritax Big Box REIT (LON:BBOX) based on mkt cap and what I (rightly or wrongly) perceive to be a safer trust. The yield is lower on Tritax Big Box REIT (LON:BBOX) than many others but the mgt team have been excellent and I recently added. Trading update was highlighted on this board some time ago. My only criticism is that I wish they would set out their main stats in a clear table, the same way that Primary Health Properties (LON:PHP) do.
https://tinyurl.com/4ashraek
By contrast, I found the various moving parts of the Renewables Infrastructure (LON:TRIG) NAV calculation in early May quite difficult to follow. Again, maybe just me but that's my view. Happy to hear different perspectives.
https://tinyurl.com/22m7d5jt
HgCapital Trust (LON:HGT) quarterly update was okay(ish), it's not clear why the NAV declined by 2% but I'm not overly concerned. The rest of the commentary clearly indicates that private equity markets are functioning well with plenty of liquidity (at least for the type of deals that HGT want to do). Again, maybe I am little biased because I hold HgCapital Trust (LON:HGT) but the fact they are invested in profitable software companies gives me some confidence the trust is not completely reliant on buying and selling. Mgt can continue to run the holdings as going concerns.
https://tinyurl.com/2zy6z5hn
I bought North Atlantic Smaller Companies Investment Trust (LON:NAS) towards the end of 2021 and sold half way through 2022, lost money overall. It's really a family office and has been run for the benefit of the majority holders. The macro economic commentary from the Chairman is spot on but the company specific commentary from Christopher Mills is lightweight. I'm not tempted to buy it again. It is up +30% over the last 5 years though so it's doing something right.
https://tinyurl.com/4rkmrvhp
Really liked John Kingham's dividend list. Will take another look at Chesnara (LON:CSN)
https://tinyurl.com/bddvab4n
The following article reminds me why I keep taking an interest in India. Need to do something about it!
https://tinyurl.com/yd3z64ue
Hydrogen One have a very good handbook on their web site. Charles, maybe of interest ?Microsoft Word - HydrogenOne Capital Bluffers Guide 2023.docx
Wanted to share some views on the recenet RNS from Edinburgh Investment Trust (LON:EDIN) and AVI Global Trust (LON:AGT) but run out of time.
If anyone has any solid/safe ideas for my 25/26 ISA cash, I'm happy to take a look. I would buy more Aviva (LON:AV.) but I never like to do that after decent rises in the SP (Ed would tell me to read one of his recent articles but I do like to buy with a margin of error). Maybe another large cap insurance company for the dividend is the way to go.
SSB
SSB, as you know I am along term holder of HGEN. I am holding on in the hope the discount will narrow. The bluffers guide was interesting, and apart from this holding I have shares in the unquoted Rivermore based in Wales. Re Chesnara (LON:CSN) I have held it for several years in my wife’s ISA and please to see that at last the share price is starting to go up. Was never really sure why it was unloved as seems a solid enough business with a decent dividend.
That looks yet another of your great posts ShoeShineBoy but I haven’t had time yet to go through it all, nor to look at the links you’ve provided. I’ll reply when I have and hope you get a few more follow up replies too.
For now just one very obvious thing……..this week could see very big market falls. For how long and how severe and which sectors and Countries/Regions will be most affected etc) obviously depends on how Middle East events unfold, and to what extent oil supplies are hit and whether or not Iran targets the Strait of Hormuz etc. When the dust settles ( too soon to know whether this will be a long term or short term crisis) could be the next buy the big dip buy opportunity.
Hi SSB
I promised to reply to your post but you got such a comprehensive reply from timarr there’s not much to add.
Thanks for posting the John Lee section.He’s on our wavelength.He makes the point that we can’t expect to time our buys to get in at the exact bottom or sell at the exact top. True…but quite often small investors seem too scared to take advantage of big dips like the Trump tariff drop in April for fear of it not being the bottom.
As for Vietnam…..The Times Tempus column tipped Vietnam Enterprise Investments (LON:VEIL) on Wednesday following their Results. Not much in the article about Vietnam that hasn’t been covered here. You were right ages ago in insisting VietNam Holding (LON:VNH) looked better than VinaCapital Vietnam Opportunity Fund (LON:VOF) but that 20% discount with NAV rising means I’m happy continuing to hold both of them….and in preference to Vietnam Enterprise Investments (LON:VEIL) .
Re your REIT section.The only reason I don’t hold Tritax Big Box REIT (LON:BBOX) is the lower dividend yield. Looks a quality REIT. I still think Schroder European Real Estate Investment Trust (LON:SERE) which I hold is worth sticking with on that 30% discount in case like with Tritax EuroBox (LON:EBOX^L24) it gets a bid.
So agree about Renewables Infrastructure (LON:TRIG) difficult to follow. They nearly all are but I hold several of the big dividend payers in that sector. The bid for Downing Renewables & Infrastructure Trust (LON:DORE) on Friday saw share gains for other possible targets. I hold Renewables Infrastructure (LON:TRIG) btw.
Agreed with your final points. E.g There might well be more share gains ahead for Aviva (LON:AV.) but the obvious buy opportunity was ages ago before the big share price gains. And at least as soon as it became obvious that Amanda Blanc looked to be doing a great job.
I regularly covered the buy case for shares like Aviva (LON:AV.) on the BARG threads at the bombed out prices on Mike Walters bulletin board, including when I added a few more around 250p. Not sure many agreed …as so many there preferred much riskier early stage shares! AND Mike always warned his readers to stay away every time there was a wonderful big market dip buy opportunity.
Buying quality shares at bargain prices might need patience, but there are the big, (sometimes over 10%) dividends while we wait for capital gains.
I’ve held Aviva (LON:AV.) M&G (LON:MNG) Phoenix group (LON:PHNX) Aberdeen (LON:ABDN) (except for a brief sell) Chesnara (LON:CSN) and Legal & General (LON:LGEN) . Most are recovering to sensible prices at long last, even Chesnara (LON:CSN) but not yet for Legal & General (LON:LGEN) and I can’t fathom why it’s still so unloved.
Keep your great posts coming ShoeShineBoy if/when you manage to get a bit of spare time.
SDCL Efficiency Income Trust (LON:SEIT)Online meeting SEIT 2025 Financial Year Annual Results | SparkLive | LSEG
I have real problems with Sparklive- get error messages all the time. Why they(SEIT) do not use IMC is a mystery
Investor Meet Company thios coming week.
CC JAPAN INCOME & GROWTH TRUST PLC
Investor Presentation
17th Jun 2025 at 2:00pm BST
THE GLOBAL SMALLER COMPANIES TRUST PLC
Investor update
18th Jun 2025 at 10:00am BST
VIETNAM ENTERPRISE INVESTMENTS LIMITED
Annual General Meeting
18th Jun 2025 at 12:00pm BST
NEXTENERGY SOLAR FUND LIMITED
Full Year Results for the period ended 31 March 2025
19th Jun 2025 at 12:30pm BST
SCHRODER REAL ESTATE INVESTMENT TRUST LIMITED
Final results for the year ended 31 March 2025
20th Jun 2025 at 11:30am BST
sold the rump of my VPC Specialty Lending Investments (LON:VSL) to establish a new position in Sequoia Economic Infrastructure Income Fund (LON:SEQI) . While not as cheap as it was, it still sports a useful 8.5% dividend while trading at a 12% discount to NAV. There's also rather a positive chart set up off the back of recent sectoral recoveries no doubt, but puts me back in mind of Barclays price target from back in December last year of 95p. It's currently down slightly with the markets . 2.3% of the Bruciefolio; and I have bought some for one of my 3rd party (passive income) folios for good measure. Concerning availability to buy, there was no problem on ii.
Sequoia Economic Infrastructure Income | The AIC
Concerning Sequoia Economic Infrastructure Income Fund (LON:SEQI) oddly enough I've only just noticed the outstanding Stocko metrics - including an overall score of 98 and the Peter Lynch Growth Screen! Perhaps Charles could comment as I'm not sure it's usual to see such with a high income infrastructure debt fund - is it? GCP Infrastructure Investments (LON:GCP) , for example, which I also hold, receives precisely "Nul Points".
This is a reply to Brucie’s post on Sequoia Economic Infrastructure Income Fund (LON:SEQI) 98 Stockopedia mark, but if it reads like having a go at Stockopedia it isn’t. They get their figures for each share and Trust from Refinitiv. Unfortunately the figures Refinitiv come up with for Investment Trusts are sometimes nonsensical. And must know info like NAV and discount or premium to NAV are not included. So Stockopedia unfortunately is not the place to look for reliable figures on Investment Trusts.
Here are just a few of endless similar examples.
Compare Sequoia Economic Infrastructure Income Fund (LON:SEQI) a rather difficult to assess Infrastructure Trust with mainstream Trust Merchants Trust (LON:MRCH) with a quality and easy to find portfolio along with a record of increasing dividends for over 50 years. There are no quality, value and momentum figures for MRCH. But have a look at the “Financial Summary” figures on the left side. Huge ups and downs in alternate years . Really???
What about 3i (LON:III) ? It’s surely about the most overvalued Trust on. the market. It’s on a 60% PREMIUM to NAV. I.e Investors are being asked to pay 60% more than their portfolio is worth. And isn’t the quality dubious with so much in just one investment? Yet 3i (LON:III) gets 39 for value and 97 for quality and 91 overall.
Next to a couple of REITs.
Aew UK Reit (LON:AEWU) (deservedly) on a very small discount gets 72 for value, while Schroder European Real Estate Investment Trust (LON:SERE) on a 30% discount gets 47 for value.
Now to VietNam Holding (LON:VNH) and VinaCapital Vietnam Opportunity Fund (LON:VOF).
VietNam Holding (LON:VNH) gets 60 for quality and 86 for value despite it being on a very small discount. VinaCapital Vietnam Opportunity Fund (LON:VOF) gets just 10 for quality and only 64 for value despite unlike VNH being on a big 20% discount. Even the very poor quality Trust Macau Property Opportunities Fund (LON:MPO) gets a higher mark for quality.
Now to Amedeo Air Four Plus (LON:AA4) . It gets 97 for value. That’s dangerously misleading!! How much the share is worth depends on the terminal value of the planes they are leasing to Emirates and Thai airlines. So the final value is guesswork. So how on earth have Refinitiv come up with that high 97 mark? Also if looking at the AA4 performance for all sorts of things it compares AA4 with others in “The Banking Services” sector. But Amedeo Air Four Plus (LON:AA4) is an Aircraft Leasing Trust.
Then check the figures for superb performer Rockwood Strategic (LON:RKW) including comparing with similar Trusts. It’s described as in “The Holding Companies” market.. Why? It’s in the UK smaller companies sector!
These are just a very few examples, but it’s across the board.
I hold the Trusts in this post except for Sequoia Economic Infrastructure Income Fund (LON:SEQI) and 3i (LON:III). I don’t use Stockopedia for them, but primarily AIC and occasionally Trustnet.
Interesting, Ken, thanks for pointing this out.
An interesting article in yesterdays daily Money Week email regards IT's on large discounts compared to their 5yr average.
Might be worth some more investigation - some of them are regularly talked about on this board and I am sure held by a few of us.
https://moneyweek.com/investme...
For full disclosure I hold Augmentum Fintech (LON:AUGM) and Golden Prospect Precious Metals (LON:GPM)
I was thinking aboutthe same thing last night, triggered from the discussion here about discount to NAV for RIII and PSH. Basically find trusts that are trading at a wider than normal discount, find a reason why, and then try to understand how/why it would return to normal.
I'm struggling to find a way to screen for this type of strategy though.
Don’t forget that Charles includes the biggest monthly winners and losers in his brilliant header article which he updates at the start of each new month.
Also in addition, here’s what you might be looking for:-
https://citywire.com/investmen...
The above link is for the regular Citywire update in 5 sections that they write every Friday; so the link above is for last Friday. I find it very useful. It covers the biggest winners and losers that week.
I don’t take any notice of their (meaningless imo) z scores, and also it would be far better if their list of “cheap” and “expensive” Trusts were headed “cheaper” and “more expensive” since their basis for that is based solely on Trusts that have gone to wider or narrower discounts over the week.
Citywire write lots of very good articles on Investment Trusts, so it’s well worth registering for them. Note that Charles includes the Citywire link in his monthly header article along with AIC, Trustnet, Money-makers (podcast every Saturday) and Edison. Trustnet is good for risk scores if readers don’t all know (and nearly everything else in this post) already!
Posts like this one on sources we can use, like posting about the masses of info available for us on AIC, usually get very few recommendations. That’s either because nearly everyone knows already or an indication that Investment Trust enthusiasts here are happy with different sources. Or with focus mainly on posts here perhaps?
Follow in up my reply to. DaveR earlier todwy here is this week’s Citywire Trust watch, covering b the biggest winners and losers this week,along with so called cheap and expensive Trusts.
https://citywire.com/investmen...
It’s a while since there have been any posts on REITS. Two of them updated today and both reported NAV growth, providing yet again evidence that the sector is now recovering.
Unfortunately for anyone looking to buy now, many of them have seen increasing share prices and narrowing discounts. The strong buy opportunity highlighted by a range of posters earlier this year, as well last year, has mostly gone. But as happened in April, there could be temporary dips ahead and a better buy opportunity.
Anyway to the update.
Schroder Real Estate Investment Trust (LON:SREI) 53p Results today included NAV up to 61.6p and a reminder that they increased the previous quarterly dividend and it’s covered,and the next quarterly announced today is at the new higher level. They also reported their strongest total return since 2022.
Kepler covered in detail today including their view that “the potential for NAV and income to grow is high” The buy opportunity in the mid 40s was well covered here. Might be best to hope for a dip to increase dividend yield and maximise any capital gain . Here’s the link to the Kepler Research:-
https://www.theaic.co.uk/compa...
Custodian Property Income Reit 84p. (LON:CREI) also reported. Again positive including a dividend increase for total of 6p a year, to give 7.2% yield. NAV is up 3% and the tone throughout was positive.
Schroder European Real Estate Investment Trust (67p) (LON:SERE) is worth mentioning as it’s the only one (other than much riskier REITS like Regional REIT) (LON:RGL), still on a very wide (31%!) discount.Dividend yield is 7.4%. I thought (wrongly so far) that like Tritax EuroBox (LON:EBOX^L24) it would fall to a bid. Their Results are on June 26th. If they reassure it might at last boost the bombed out share price.
Too many of the previous bargain priced REITS on big discounts and paying dividends above 9% posted about then have seen significant share price gains and discounts now small. E.g Supermarket Income REIT (LON:SUPR) is up nearly 30% from 66p to 83p. And the best performer of all of them Aew UK Reit (LON:AEWU) 104p is now on a very small discount.
Away from REITS note at last some signs of Henderson Far East Income (LON:HFEL) performance improving. Latest NAV is up to 209 and up 16% from the April low. I regret chickening out of a modest top up near the 180p low along with posting here it looked too early. Dividend now is 11% but it was over 13% that could have been locked in near the low.
Aberdeen Asian Income Fund (LON:AAIF) 222p. It’s on an 11% discount. AAIF are now aping HFEL with their changed dividend policy to focus more on income. They intend paying 6.25% of NAV in dividends. If they can do that without it being too much at the expense of capital gain potential, now could be a good buy opportunity. Better still if there’s a significant increase in NAV.
I hold all the Trusts in this post.
I do think Aberdeen Asian Income Fund (LON:AAIF) looks interesting as a way to get some Asian equity exposure. They've committed to return 6.25% of NAV each year - this looks quite attractive given its trading on a 11% discount, so you're effectively getting a c.12% uplift if capital is returned at NAV. I would expect NAV to grow in excess of 6% each year on average so this feels like a sustainable return. I've also noticed that Aberdeen seem to plugging this trust quite hard (frequently hear ads for it on the radio) so that might help tighten the discount.
Interesting Bouden, will have a look at it. I hold Scottish Oriental Smaller Companies Trust (LON:SST) but I am keen on Asia.
No comments on the update from GCP Infrastructure Investments (LON:GCP) today.
On the face of it, not a great update. Net assets & Nav per share down, also profit for the period down to 0.4m from 9.9m.
However, the dividend (currently at 9.8%) is paid out of loan repayments received which seems safe for now.
I hold (for the dividends mainly).
Hi
Does anyone have any thoughts on CLS Holdings (LON:CLI) , seems cheap although its current LTV is high at 48/50% . They are selling some properties to reduce this and I believe have reduced dividend .
60% owned by Mortstedt family (so perhaps a bit too high ) ... feels to me possibly good entry any thought welcome
Hi Prof, yes I hold, so the issues you mention are familiar. I can't really advise except perhaps to mention that WShak has been a heavy buyer in the 60s. They've also of course cut their dividend and as you say, a big family holding. I would say there's risk but at an excessive discount.
Thanks Bruce is there a link for WSHAK ?
You can follow him on twitter or the advfn board.
Will do thanks again Bruce .
Prof, I bought yesterday having sold Great Portland Estates (LON:GPE) at above my target return of 10%., which I bought a few months ago.CLS Looks cheap and defensive with a wide European portfolio. Discount looks large and whilst dividend was cut, reasons were solid. Debt reduction is focus, did a Gemini AI research and conclusion was positive for a company run for all shareholders. Not an investment trust, but not far off regarding portfolio.
Hi Charles ,
Thanks for feedback. I also hold Great Portland Estates (LON:GPE) and Derwent London (LON:DLN) . What made you sell GPE as I think could have more to go .
Prof, GPE could indeed continue I bought as a short term investment based on property companies looking cheap I hold Hammerson (LON:HMSO) , bought at same time for same reasons, but decided to keep HMSO instead and put the GPE funds into CLS
Wanted to say thanks for all your posts and thoughts you have really helped me.
Whilst doing some background research on SDCL Efficiency Income Trust (LON:SEIT) I came across an investment trust research site Kepler Trust Intelligence. Not sure how good/bad they are, but thought I'd pass it on.
The Oak Bloke (Substack) has done some very detailed analysis on SDCL Efficiency Income Trust (LON:SEIT) holding of Onyx. This suggests there is a 50% discount to NAV for the Onyx holding.
I will add Kepler to my monthly introDave. I know them, but had not thought to so do. They are paid for their research by the Trust concerned. I have stopped using them as I find goggle.gemini ai deep research pretty good.
Thanks.That’s a good addition Charles. I use and refer to Kepler and QuotedData analysis in posts here regularly, and for Trusts find both of them via the “Announcements” heading on AIC for the relevant Trust. . E.g as here for the recent Kepler analysis on Schroder Real Estate Investment Trust (LON:SREI) Results, one of the REITs in my post yesterday.
https://www.theaic.co.uk/compa...
Both Kepler and QuotedData are paid for, but so often are the Brokers writing their notes. I think the analysis from both is very good and superior to a lot of Broker notes. They also don’t do pointless Broker exercises like meaningless target prices which they update from time to time with idiotic minor changes leading to headings like “Goldman Sachs (or whoever) has upgraded the ABDN (or whoever) target price from 195p to 200p.
Not sure if this qualifies for on here -
Head sctatcher valuation
Power metal resources
Not my usual playing field but anomalous valuation
Market cap 15 million
7 or 8 million cash
They own 20% of gmet which has rerated - 20% of gmet is now worth more than the entire market cap of PMR
Plus other investnents
Assuming GMET holds its price gains its an anomaly
As gmet goes up PMR goes down , looks like theres a determined seller
Not for the faint of heart but hard to see 7million cash and 16 million of GMet plus its other invrstments being worth only 15 million
Stock market is a voting machine not a weighing machine
I keep buying in the 13p region
Surely its like being able to buy a quid for 50p
Maybe PMR management are so useless that they are going to blow the lot , but i just think the stock is unloved, unfollowed .
Maybe GMeT will pull back but the fag packet still looks ok even if gmet slips back 25%
Digital 9 Infrastructure (LON:DGI9) Finally had a response from the board .
"Thank you for your detailed correspondence and for clearly outlining your concerns regarding the Company’s performance, governance, and communications with shareholders.
We fully recognise the seriousness of the issues you have raised, particularly in relation to the significant decline in the Company’s net asset value (NAV) over recent periods and the broader impact on shareholder value. The figures you have highlighted accurately reflect the challenges faced since June 2022, with NAV decreasing from £852.3m (30 June 2022) to £297m (31 December 2024). We acknowledge your frustration, especially given the Company’s history of fund-raising post-IPO and the expectations that were set.
Accountability and Investigative Action
You have suggested that both the Jersey authorities, as well as the London Stock Exchange and FCA, should be asked to investigate past conduct to ensure individuals involved are held accountable and to protect the integrity of future capital markets activities. We want to assure you that the current Board, which was largely reconstituted from May to August 2024 alongside the transition away from Triple Point Investment Management LLP, is committed to full transparency and good governance.
Board’s Current Actions
Since taking office, the new Board has prioritised stabilising the portfolio, securing the Company’s assets, and communicating candidly with shareholders, including the proposals for a managed wind-down announced in January 2024. We have worked closely with our advisers and engaged extensively with shareholders to determine the best way forward amid continued market volatility and operational challenges. The Board recognises that more decisive action and clearer communication were needed in the past and is committed to improving both going forward.
Communications and Transparency
We note the details provided from previous trading and financial updates, as well as your concerns about their adequacy. The Board is committed to transparency and will continue to update shareholders as the managed wind-down progresses, including any material developments in relation to asset disposals, balance sheet management, and shareholder value realisation. However, the Board remain cognisant of making disclosures which would prejudice negotiations regarding releasing best value for the Company’s assets to the detriment of shareholders.
Legal and Regulatory Investigations
With respect to your suggestion regarding legal action or regulatory investigations, we are aware of the depth of shareholder concern. Should any material developments arise, we will report to shareholders in accordance with our obligations and best practice.
Ongoing Shareholder Engagement
We take all shareholder feedback seriously and remain open to further dialogue. Should you wish to provide additional information or discuss your concerns in more detail, we would welcome the opportunity to arrange a call or meeting.
Thank you for your continued engagement and patience during this challenging time for the Company and its investors."
Pershing Square Holdings (LON:PSH) )(I hold) has performed well recently on the back of an improved NAV performance. Discount seems high to me, but has been for a few years.
I agree Charles. I had sold out at the start of the year, but rebought back into it at the bottom of its Trend channel back in April and since then it has done well. I find it quite difficult to find what its exact holdings are and don't believe what HL says - it only has its supposed Top 5 and these amount to only 42% of its holdings - no idea what the reality is.
The AIC has more info on its Top-10, but I cannot compute these to what it says its geographical breakdown is (US only 13%??????).
Its discount has closed from its low of nearly 40% in January/Feb, but has come back to 32% after nearly getting to 20%. I assume this is correct.
With so little info on its holdings I think you either need to trade it utilising its trend lines, or trust on the long-term track record, albeit be ready for a rocky ride.
Kevin, I also had sold out and bought back in on the fall. To get access to their website you have to apply and prove your shareholding as I recall. They currently have 15 holdings. Latest NAV is £58.91 as per table I posted.
They do a quarterly filing in the US that reveals their US listed holdings by percentage, but IIRC is omits UMG and possibly one or two Canadian listed stocks so not that helpful. Frustratingly, Liberum notes set out the breakdown but aren't publicly available.
Also, he sometimes does things that don't lend themselves to a percentage breakdown. At the moment, his holding in Nike is through something he called "deep in the money options", so not easy to account for.
Charles/Kevin
Don’t know whether this is any help but here’s the 131 pages from their Results issued in March. I don’t hold so I’ve only scanned it, but they seem to cover their holdings and how they are doing and why in some detail:-
https://assets.pershingsquareh...
And these are their top 10 holdings as at the end of last year including percentage in each one:-
https://www.theaic.co.uk/compa...
If you register on their website you can also access their quarterly investor calls, which are about an hour long and whether or not you hold Pershing Square Holdings (LON:PSH) it is a good listen that gives an insight into how a top manager makes decisions. A huge emphasis is put on the quality of the management and the valuation of a stock: they try to buy things on pullbacks when possible.
I assume that the announcement today from avation will help holders of aa4 me included.upside on sale of Boeing 777
We hope those that were able to join us at Mello2025 last week had a great & valuable time.
Hot off the heels of our excellent Mello2025 event in Chiswick last week, we will be hosting our first MelloMonday of June.
Last months top performing investment trust Seraphim Space Investment Trust (LON:SSIT) will be joining us for an investor presentation.
The full line up is as follows (subject to minor change):
5:00pm Keynote Speaker
5:30pm Company Presentation from Artisanal Spirits (LON:ART)
6:00pm Company Presentation from IP (LON:IPO)
6:30pm Company Presentation from Seraphim Space Investment Trust (LON:SSIT)
7:00pm BASH (Buy, Avoid, Sell, Hold) Panel
You can register for our webinar here: https://www.melloevents.com/mm...
Use code: MMSTOCKO50 for 50% off tickets
Please note, if you are a shareholder for any of the companies above, you are entitled to a free ticket with code: SHFREE
The free-to-shareholder bit made me look at the website for the first time. Didn't realise from the blurb here that it was on Zoom! Thought I'd have to dream forlornly of being able to go to London. Have signed up.
(I hold Seraphim Space Investment Trust (LON:SSIT).)
Gervais Willians of Premier Miton (LON:PMI) joins our line up as keynote for the session too!
Is he discussing Premier Milton Plc or specific funds/smaller cos in general?
It will be an interview format with Gervais. So he will be discussing smaller cos in general, the market & companies he finds most compelling at the moment.
I am sure Gervais will touch on his various IT&Fs.
SDCL Efficiency Income Trust (LON:SEIT) has announced that subsidiary Onyx has secured funding to be self-funding, so will no longer need funding from Seit’s rfc.
I see this as very positive and putting a what ought to be at least a 50p floor under the SDCL Efficiency Income Trust (LON:SEIT) price. I am not concerned about them selling it off as Onyx is in a good market position, and I like my dividends!
Agreed, forgot to put I hold.
Molten Ventures (LON:GROW) Figures announced today, NAV of £6.71. I have increased my holding as I am getting more confident in the Management. Investor meet company presentation on Friday. Oakley Capital Investments (LON:OCI) which I also hold has announced an interesting new investment. Maybe the time for private equity funds will come soon as valuations are reinforced by sales, Grow sold some investments at 1.8x capital invested.
As noted by a poster on the main stock market report a couple of days ago Rights and Issues Investment Trust (LON:RIII) has seen its discount widen out to around 20% which seems very high versus both its historic average and its peer group (most trade on around 10% discounts). Importantly, its underlying holdings of UK mid and small caps which they publish every day looks pretty good (I hold quite a few myself). Top holding is Renolds, so if that deal goes through they will be holding more than 10% in cash.
RIIi
Agree its tradition on 0-10% discount
Bought today expecting this to Tighten up from 20% so should be a relatively quick 10% .
Not sure its goong to be a long teem hold but feels a bit of a no brainer that some cash inflows will quickly resolve
Gore Street Energy Storage Fund (LON:GSF) (I hold and may buy more) . RM Capital have just announced their stake has increased to 5% from 4%. Looking at RM , who are based in Edinburgh, they say " RM Funds seeking to positively allocate capital towards companies that are operating in sectors providing benefits to society and the environment" I assume they also do decent research "This focus means RM are well positioned to deliver above average risk-adjusted returns."
I have been thinking of buying more as the share price falls, this could be the prod I needed. It would involve selling something as SIPP is in drawdown and ISA's full for this year.
HI Charles,
I notice the divi was cut last year to 1p/qtr - so this would equate to approx 6.5% at current SP assuming it continues at same qtly rate..
Do you see the opportunity here for capital appreciation, or are you holding this for income? Keen to understand a bit more about its rationale and likewise any other competitors.
Certainly sounds like a positive that one of its major shareholders has increased its stake.
Kevin, I am thinking that the share price could rise, but it would be dependent on the dividend and what happens to the prices they are paid.But I need to look into this a bit more before I increase the holding. Gresham House Energy Storage Fund (LON:GRID) is the most similar, which I also hold. I am though keen on sustainable companies, which does not always pay off i.e Hydrogenone Capital Growth (LON:HGEN)
Kevin, having done a bit of research using AI I suspect one of the uncertainties affecting GSF is the Irish market. Sounds like there are some infrastructure issues and a need for long storage batteries-4 hours- rather than short term, which although GSF does not break-down are believed to be in the 30 minute-1 hour range. In the US A , GSF does have longer storage batteries and it looks like they are moving to longer storage across the portfolio. They do mention that once they reach 750 MW they may use capital to "duration extensions to existing assets".
The big question remains the dividend. It was uncovered , but indications are that operational improvements will lead to the target dividend of 7% of Assets being covered, although they did state for 2025/25 the dividend would be more closely aligned to cash flow.
I am in two minds about whether to average down or not. I am not going to sell as I think the medium term outlook is positive. GRID has seen a positive share price increase of 57% whilst GSF has increased about 25% in the same period. The holding is in my wife's ISA which is probably why I am dithering more than if in my portfolio !
Actually, the dividend was not cut last year; it was re-scheduled for cash flow purposes, given the completion capex going into the projects that should mean it is by now generating power at a running rate far higher than last year. Now, they do have a big lump of tax credits that they are trying to sell, about which we have NOT had news, but the final div, all being equal, was going to be 4p, which would bring the total to 7p. We should know by the end of this month. US politics might just stymie that sale, but on the other hand, the tariffs fandango is increasing the price of new battery installations, which may reduce short-term competition. I eagerly await the news from the enthusiastic but highly experienced Alex O'Cinneide.
You do realise that just because you are in drawdown you can still contribute to your sipp and then kove it over to drawdown claiming the tax and then the 25% cash element
I have taken the 25%. My company could i guess contribute, but as I am winding that down slowly not a huge amount of profit. I have in fact a dealing account set up now for the Ltd Company.
I think Timarr posted on the wrong month as it had been promoted to the top by a comment on an old post.
Hope that is OK Timarr to re-post.
I’m happy continuing to hold Tritax EuroBox (LON:EBOX) while this supposed bid situation drags on, and on and on………
Blimey, I'd assumed this would have been resolved yonks ago. I sold out taking the view that it was dead money otherwise. Stuck the cash into Supermarket Income REIT (LON:SUPR).
There's a possibly similar situation unfolding at Warehouse Reit (LON:WHR) where the Blackstone bid is (in my view) derisory. They even had the cheek to suggest that the last dividend was part of the value of the bid.
I don't hold any candle for broker views on anything very much, but Shore Capital think it's worth 133p a share, and I'm willing to let confirmation bias take its course on this occasion.
Frankly I don't very much like bids for any of my holdings as I buy to hold and achieve long term capital gains and income streams, not see a bunch of American adventurers run off with my future profits for a derisory capital gain. Spectris (LON:SXS) is my latest portfolio holding to suffer the curse of a US based takeover at a 70% (!) premium. Hopefully there'll be a counterbid at least.
Meanwhile this bull market climbs a wall of worry ...
timarr
I think Timarr posted on the wrong month as it had been promoted to the top by a comment on an old post.
Hi Charles - no problem at all. These new-fangled thread things are confusing my old-fangled brain :-)
timarr
It was unfortunate a very old note got commented on. I have done it myself on my own thread!
From the AIC-May 2025
As I have started to draw down from my SIPP I have been selling non-dividend paying stocks and buying stocks that do. Not an exciting trust but Global Opportunities Trust (LON:GOT) yields 3.23% , has nearly 40% in cash assets and yet is on a 20% discount, which seems a bit harsh. Too small I assume for SABA to look at , and Sandy Nairn , a director and lead manager , holds around 20% with family. Dividend looks safe and whilst not been increased recently looks safe.
Hi Charles
Global Opportunities Trust (LON:GOT), I held previously in an amount around £20k. It was extremely difficult to exit at anything near quoted price, if you can get a bid. Very poor liquidity, so just bear in mind.
Sandy Nairn talks a really good game, closely followed by Jonathan Davis, I think he helped write book together. Very boring holding that went nowhere for me.
Hope you have a different experience
I did research that. I am hoping Nairn will do something re the discount-will give it 6 months. Charles
Max King still likes Vietnam as per the most recent MoneyWeek newsletter:
https://tinyurl.com/s9bx69jn
Vietnam: a high-growth market going cheap
The threat of tariffs has shaken Vietnamese stocks, but the long-term prospects remain solid, says Max King
It has been 50 years since Vietnam was reunited after a 25-year war that devastated the country. For the next 15 years, the communist regime made a bad situation worse by encouraging their opponents – the skilled, the educated and the ethnically Chinese – to flee, mostly in small boats. Between 200,000 and 400,000 refugees are thought to have died at sea.
However, in the late 1980s, the government performed a sharp U-turn and turned Vietnam into a very capitalist country under autocratic rule. Since then, GDP per capita has risen from $270 a year to $4,300 in an economy that has grown from $6.3 billion to $430 billion, notes Tod Davis of brokers Deutsche Numis.
Wider signs of social progress are equally impressive: the population has increased from 44 million to 100 million, male life expectancy at birth has risen from 61 to 75, literacy has risen from 57% to 96%, and the poverty rate has fallen from 78% to around 3%. Davis puts this transformation down to “the resilience, grit and determination of the nation – making it, for me, the number-one destination in Asia for investment over at least the next ten years”.
A prosperous future for Vietnam
With the economy growing at 6% per annum, “Vietnam is likely to become a high income nation similar to Taiwan and South Korea, with a GDP per capita of $12,500 within 20 years”, says Brook Taylor, chief executive of VinaCapital, the manager of the £700m Vietnam Opportunity Fund (LSE: VOF). He regards Vietnam as culturally more similar to these countries than the very different countries of Southeast Asia.
Sceptics will worry about the prospect for capitalist growth in a communist country, but “prosperity for everybody provides the legitimacy for one party government, as in Singapore”. There is “some correlation between democracy and prosperity”, but “which comes first?” Taylor asks.
“South Korea and Taiwan became democracies as the result of development.”
Vietnam has key advantages; a diaspora of around five million Vietnamese around the world, a high participation rate for women in the workforce, agricultural and mineral wealth and “a very pragmatic mindset”. The country’s 2,000-km coastline is a significant asset. “The wealth of China and the US is concentrated on the coast.” Surveys also assess it as “the third least-corrupt country in Asia, after Singapore and Malaysia”.
The threat of tariffs is the current worry (America’s trade deficit with Vietnam is its third-largest), but this may be exaggerated. VinaCapital expects the US to settle for a 20% tariff in the end, probably with a high-tech exemption. This would reduce GDP growth from 7% to about 6% for 2025. Yet this may still translate into corporate earnings growth of 20%, for a stock market valued at just 10.4 times expected earnings.
Private markets
VOF is managed by Khanh Vu, who left Vietnam by boat in 1978, but returned in 2010. His concentrated portfolio is invested in 25 stocks, focused on sectors that benefit from the evolving economy. Real estate accounts for 22% of the portfolio: urbanisation is still just 41%. Financials are 19%: only 43% of the population have bank accounts. Consumer and health care are 20%: domestic consumption is 65% of GDP and the middle class is growing. Industrials and technology account for 11%: internet penetration is 79%. Ten of the holdings are currently private, but 80% of the listed stocks also began as private equity, in privatisations or as private placements.
While Vietnam has 1,700 listed companies, screening for size, liquidity, low debt and growth reduces VOF’s scope greatly, to 25-30. Of the 15,000 private companies, Vu regards 100 as investable. Investments are typically held for three to five years, “but over ten years if justified”. However, Vu actively trims investments that perform strongly, or even sells out.
Vinamilk, one of the largest constituents of the Vietnam index, was held for 17 years until it exited between 2017 and 2021. Since then, the shares have performed poorly.
These disposals have enabled new investments – including reinvestment into a bakery company that was VinaCapital’s first investment – but also returns of capital. The trust has handed $764 million back to investors since 2011 – equivalent to its net assets then – including $92 million of share buy-backs since mid 2024. It has paid dividends since 2017 and the shares now yield 2.8%.
Focused exposure
Over the last three years, the market has been poor. At the end of April, VOF’s net asset value (NAV) was down by 10% in US dollar terms. Dragon Capital’s £1.2 billion Vietnam Enterprise Investments (LSE: VEIL) had lost 25% and Dynam Capital’s £80 million Vietnam Holding (LSE: VNH) had fallen by 10%.
However, the numbers are better over five years: the NAV return for VOF has been 68%, with VEIL on 58% and VNH returning 109%. There are points of differentiation (such as VOF’s greater focus on private markets and VNH’s tilt to smaller stocks), but the investment stories for all three are compelling. At present, VNH trades at a 5% discount to NAV, while the other two are on around 20%.
Vietnam is classified as a frontier market rather than an emerging one, so any exposure in an emerging-market fund is off-benchmark and typically small, making these specialist funds look more compelling. It is normally wise to be sceptical about single-country funds: investors can easily get sucked in at the high only to see the country fall out of favour. Being cautious about investing based on a country’s economic record is also wise (China has proved a miserable place to invest over the last 15 years). However, given the sharp setback in Vietnam’s market this year – due to the threat of tariffs – despite the excellent outlook and an investor-friendly approach, it may be the exception that proves the rule.
For investors wanting to hear more about Vietnam, Dragon Capital is holding a Vietnam forum and lunch with Dragon’s founder Dominic Scriven and VEIL’s lead portfolio manager Tuan Le in London on 18 June. There is no requirement to be a VEIL shareholder – all are welcome. For more details and to register, go to veil.uk/2025-annual-general-meeting.
--------
SSB comment: much like the discussion below on investment trusts versus open ended funds, I wonder if a closed ended investment trust or maybe an ETF is the best way to play this ? I'm not sure I completely trust the NAV on VinaCapital Vietnam Opportunity Fund (LON:VOF) given the significant private equity portion. And although I hold VietNam Holding (LON:VNH), it's the smallest share by mkt cap that I hold and I tend to prefer larger mkt cap for liquidity reasons. I would welcome thoughts from others.
btw, I think the MoneyWeek newsletters are free to sign up to. Useful commentary as always from Max King.
VinaCapital Vietnam Opportunity Fund (LON:VOF) just announced they have sold one of their private holdings, TAM TRI MEDICAL, for a premium.
One of the criticisms of VinaCapital Vietnam Opportunity Fund (LON:VOF) is it's private equity holdings so reassuring to see they have achieved a disposal for a premium, although we have to take their word for it.
ShoeShineBoy.
Thanks for posting that article. The content mostly speaks for itself but it’s worth highlighting a few points in it. e.g the section saying that for the past 3 years the market has been poor. Check the long term Vietnam charts to see that when that’s happened in the past, every time there has eventually been a sustained good run for the Vietnam Trusts.
Also re the doubts some have about the private companies in the VinaCapital Vietnam Opportunity Fund (LON:VOF) portfolio, note how so many of the previous ones have ended up as successful quoted Companies.
Also that 7% a year Vietnam growth run has, according to a comment on the Vietnam TV Channel4 programme on Sunday (Our Guy in Vietnam), been the case since 1990. That might not be accurate comment, but if readers haven’t seen it, that programme alone, showing a lot of happy faces and obviously thriving businesses, and a work ethic that’s so missing these days here, might influence doubters to follow up on the very strong investment case. Guy Martin is not everyone’s taste and the voice over is worse, but the programme otherwise is well worth watching on catch up or wherever.
Trump and the ever risk of other market shocks mean it’s best to buy the market dips, and I covered that angle in my reply to Kevin today.
Further to one of my posts earlier this week looking for some ideas for Emerging Markets I started to have a look at a couple of the bigger players and compared them against my current holding in a Unit Trust I identified 18mths ago.
I haven't looked into the discounts on the IT's, but I found the 5yr Total Return charts telling an interesting tale. Obviously the Redwheel Unit Trust holds a fair amount of Frontier Market exposure, but it appears the fund managers have done a consistent job of retaining their gains and avoiding major volatility.
Might be one to explore a bit further for anyone interested in Frontier/Emerging Markets.
High annual charges (1.4%), but sometimes quality is worth paying for.
Kevin.
That’s exceptionally good performance from that Redwheel Unit Trust and way out performs over 5 years the 101% from the best performing Investment Trust, Black Rock Frontiers.
BUT!
There are 175 Unit Trusts in that sector. What were the chances of choosing to go for that particular Trust 5 years ago with so many to choose from? A big plus point for Investment Trusts is the much more limited choice making it much easier and quicker to spot the buy opportunities. See here for the (too few?) Global Emerging Trusts to choose from:-
https://www.theaic.co.uk/aic/f...
And how has the Unit Trust Emerging Sector performed compared with the Investment Trusts? Is that a better guide than finding 1 or a few exceptional performers out of 175 in advance?
Over 1 and 5 years the Unit Trust sector average is +5% and +24%. That’s also reflecting that they trade at full NAV and includes exceptional performers like Redwheel to help inflate the figure.
Over 1 and 5 years the Investment Trust sector is + 15% and+31%. Unlike the Unit Trusts all of them are at a discount and so can be bought at a discount and sector performance would be better still if they too traded at full NAV.
There are sectors where Unit Trusts end up doing better than Investment Trusts. I haven’t checked this for a while but there were cases of parallel Unit and Investment Trusts with identical holdings, and it was always the Investment Trusts that did best. Don’t know whether that still applies.
But again. For all my arguing that Investment Trusts are far better, it shouldn’t put anyone off going for Unit Trusts, either instead, or like Kevin, as well.
Just briefly following up my previous post. For an example of a huge (and now VERY risky) Investment Trust outperformer take a look at this link and see the astonishing performance from 3i (LON:III) in the Private Equity Sector. It’s way outperformed all the others and distorted the sector average too. But that success (45% 1 year, 453% 5 years and 944% 10 years) is based on a now huge stake in just one very successful investment. If that one tanks look out……and the more so since 3i (LON:III) is trading at a ludicrous 63% premium to NAV.
https://www.theaic.co.uk/aic/f...
And to think I bought 3i (LON:III) ahead of all those gains (and included it in a selection of Trusts to consider in a talk at one of Mike Walters good fun annual get togethers years ago now) but the sold for a modest profit. I’ve done that too many times!
I did the same with III. Sold when at a tiny premium. I still think it was a correct decision as the current valuation makes no sense.
Thanks Ken - a very useful link which I hadn't thought of using when I was beginning my search. The Blackrock Frontiers Investment Trust (LON:BRFI) looks very interesting and fishes in similar places to the Redwheel UT.
I seem to recall Charles maybe dabbling in this in the past. I will give it a bit more thought and maybe top-up the Redwheel whilst opening a position in BRFI.
I also see some life coming back into some of the commodities in the last couple of weeks - might be time for BlackRock World Mining Trust (LON:BRWM) to show its face again. It has had a decent bounce since the Tariff woes in April, but I would hope this is the start of a longer term trend.
Totally agree regards your comments on 3i (LON:III) - a bit too late now, but a fine winner for anyone who was in at the start.
I did hold BRFI and is on my list to buy again when I have funds.
Kevin.
I use AIC a lot. Lots to find from the home page, but also Google “AIC compare companies” for all the Investment Trusts in each sector. Here’s the link for all the Mining Trusts:-
https://www.theaic.co.uk/aic/f...
As for BlackRock World Mining Trust (LON:BRWM) and the big mining shares, as I’ve posted before but you might not have seen, it’s a sector where it pays to buy the regular dips. For now news from China will continue to move the share prices, and that’s sometimes big one to three day gains and big one to 3 day down days depending on whether the news gives a likely boost to demand or not. One day gains and losses of 5% or more are not unusual.
BlackRock World Mining Trust (LON:BRWM) at 524p is now up 30% from the April low. THAT big dip, rather than now was the obvious time to buy a part stake. (I had a full stake already but added a few more then).
Longer term, increasing clean energy demand and supply shortages will likely lead to the next long term sector bull market and much higher BlackRock World Mining Trust (LON:BRWM) share price and much bigger dividend yield too. If I had missed out on the April buy opportunity but was scared of missing out altogether by not buying now I would go for a modest stake so that I’m in, and then hope to a average down rather than up.
Averaging down badly timed buys is much less risky with Investment Trusts than single shares.
All these points apply to the Vietnam Trusts too……..a great part buy opportunity missed by most probably last month, when again I added a few more. VietNam Holding (LON:VNH) fell to a crazy 262p on over reaction to Trump’s tariffs and next day it rocketed to 308p. Had VietNam Holding (LON:VNH) the price fallen even further below 262p I would have added more.
Hope all your Investment Trust and Unit Trust investments work well. Ditto if you also hold some of those quality big dividend paying shares that are at long last really waking up.
For anyone interested, There are comparisons of performance of comparable sectors between Investment Companies and Open Ended Funds compiled by AIC/Morning Star as at end of May here:
https://www.theaic.co.uk/about...
SEIT
When I rotated into a relatively broad brush mix of high yielding / NAV discount sectors
Investment trusts
REITS
Fund managers
Infrastructure trusts
SEIT stands out as the only one that went into reverse .
Ive kept on buying on the slide and its probably turning upwards now having bottomed out
14% yield and 51% NAV discount
Just maintained its dividend .
Have to say the business looks complicated and above my pay grade but the price seems drop seems to be about some determined sellers more than anything else and I do understand that.
Lots of talk on ADVN but its pretty simple I think if the NAV is anywhere near close it has to rerate, if the NAV is la la land it still has to be a long way off
Upside risk looks ok downside risk looks very limited .
Think this will turn up in the next weeks, the 43s are gone I think
SDCL Efficiency Income Trust (LON:SEIT)
I don't think there's anything wrong with SEIT, it's just the environment it's operating in. It's not just that the Trump administration is cancelling renewables funding, which SEIT tell us they're not affected by, but that it seems to be pursuing an agenda to shut renewables projects down. They're not adverse to breaking trade agreements so I don't hold out much hope for commercial ones.
The environment is so hostile that investors are taking the view that it's best to sell first and think afterwards. Although SEIT may not be directly affected by subsidy removal it is possible that they will be impacted by some unforeseen counterparty risk.
My view - and it's really not worth very much - is that the current risk-reward balance is skewed in favour of the company. I don't think there's much chance of an absolute loss of capital here and there's a decent chance that the shares will recover once the immediate risk can be properly assessed. That said, given that it's almost impossible to guess what the US government will do next, the risk here is definitely non-zero.
Anyway, I am retaining my (shrinkingly) small stake. I wouldn't want to be holding this in any significant way, however. To put that in perspective, my holding is less than 1% of my portfolio and I'm down 18% on it.
timarr
Plus existing ground rents are also at risk from any future legislation.
https://mybrand.schroders.com/...
Whole capitalism is efficient not everything that Capitalism does is "good". Sometimes we forget that in the UK but at least we don't have the blind love for it that certain elements profess across the Atlantic!
Social Housing REIT (LON:SOHO) with largest volume in 12 months yesterday, 7.5m volume in a single trade. Nice positive sign!
See if the seller declares, Evelyn did sell a few million lend last year
Investor Meet Company next week
CQS NATURAL RESOURCES GROWTH AND INCOME PLC
Investor Presentation
10th Jun 2025 at 11:00am BST
TWENTYFOUR SELECT MONTHLY INCOME FUND LIMITED
Interim Results for the half-year ended 31st March 2025
11th Jun 2025 at 11:00am BST
DIVERSE INCOME TRUST (THE) PLC
Investor Presentation
11th Jun 2025 at 11:00am BST
OCTOPUS RENEWABLES INFRASTRUCTURE TRUST PLC
AGM
13th Jun 2025 at 10:00am BST
MOLTEN VENTURES PLC
Full year results for the 12 months ended 31 March 2025
13th Jun 2025 at 10:30am BST
and IP which is not a trust but people who follow this do hold (as do I)
IP GROUP PLC
Annual General Meeting 2025
12th Jun 2025 at 11:00am BST
Not a fan of that one due to the reasons given by Lincs. Two of the better monthly paying ETF's that worth looking into are GLDE a covered call on gold (while holding the underlying asset) which yields 12% at the moment & the recently released YMAP. YMAP has shown some impressive initial gains and yields 24%.
Sun Seeker, Unless I a misreading something YMAP has only been going a short time and made one distribution of just over $1.056 v a NAV of $52.37 I can see if they manage that for 12 months then the yield will be impressive- but as they write options presumable losses could occur ?
A little promo video from VOX Markets on VietNam Holding (LON:VNH) for anyone interested.
?si=-Po-MJgh72GrpPz5Not that you'll learn anything you don't already know.
Regards,
Jon
Oryx / North Atlantic discounts to NAV
Christopher Mills let slip at Mello that Oryx target NAV this year £18 but was already over £17
This puts it on 35% discount (Oryx)
Furthermore a few of their big holdings are punching higher notably pinewood
I started buy a few weeks ago around 1050 and few days ago 1110 , now seems to be getting hard to buy and edging up / breaking out .
There are some intraday swings and availability and spread can open / close so worth checking whew buying .
I collared Mills on his way out and he clearly thinks both are silly discount to NAV "Ive been buying at 1130 for my wife's ISA"
Very nice mix of companies in Oryx a lot I hold individually and are pretty much all rerating as the market swings upwards, Oryx seems to lag a little.
Updated NAV due soon I think it will be very close to 18.00 if Pinewood doesn't fall back.
Reckon a 20% discount is going to be where it settles at if we get the inflows Im expecting so that's circa 1440p
1160 today
Certainly very little downside and maybe 15-20% upside
Interesting though cynic that I am doubt Mills would "let slip" something!. Last NAV was £16.09 so be interesting to see month ends.
Mills / Harwood
Charles I know you have been somewhat Luke warm on Mills and his funds .
Have to say in my limited years of investing Harwood stable have been by far the most easy to talk to and looking back always open and transparent .
Mills is in his 50th year of investing and Richard Stanley is a Durham boy who had to find his way in a city where the usual entry point seems to be which posh private school you attended.
Not sure why I am saying this but Harwood are the only entity that personally I found open and willing to engage, to the point I have been to HQ a few times and gone through each funds holdings and they took the time with a relative numbskull not well versed in city folklore and protocols.
That was worth a lot to me.
The only other company I invested in that I had similar openness was actually Crestchic, can't think of any others (I did hold over 2% crest chic in the end so maybe that helped)
I never quite get the fascination and as I recall cross holdings amongst them. But the discounts look attractive and they do invest in their own funds which is very positive.( wish all managers would publish their personal holdings in the trusts they manage both listed and unit). I am sure they want to see the discount reduced and encouraging investors is a positive other trusts should follow. I am going to have a look again
Planetx- Another reason I do not hold is the lack of info on the Oryx International Growth Fund (LON:OIG) . If they cannot be bothered to keep the site updated why would I buy the shares. They are not members of the AIC either, so pretty near impossible to know what current holdings are.
I hold Oryx International Growth Fund (LON:OIG) and North Atlantic Smaller Companies Investment Trust (LON:NAS) and i noticed that both have been forming a bottom and edging up. The only thing i find is that there is not much in the way of investor relations and they don't subscribe to the AIC, which is odd. It is hard enough to find a up to date top 10. The oryx website is awful and in the reports and presentation section there is nothing since 2023..
I mentioned Hydrogenone Capital Growth (LON:HGEN) in a post the other day as a potential chart break out as its also an IT that Charles holds. Today it seems to have broken up through through the 200sma from an established base and as we know, a huge discount to NAV. Looks to me like a small bowl to 39p at the very least. Perhaps off the back of some recovering ebullience in the H2 sector, including most notably ITM. I don't yet hold, but if the chart confirms next week with a positive test of the SMA then I might be very tempted to try my luck.
Interesting Brucie, I will be interested in seeing what happens. Not a huge fan of charts for Investment Trusts, maybe this will persuade me !
HGEN
I took quite a decent position based not only on the huge discount but on the background noise on Ineos and boardroom change that happened
Ineos by all accounts are really up against it (I believe this to be true)
Then in March this RNS
"Mr David Bucknall is stepping down from the Board effective immediately.
The Company is pleased to announce the appointment of Mr Erik Magnesen, as Non-Executive Director of the Company with immediate effect. Erik is currently Chief Financial Officer of the INEOS Energy Europe group of companies and has been nominated as the Board representative of INEOS UK E&P Holdings Limited ("INEOS Energy") pursuant to the relationship and co-investment agreement entered into between, inter alia, INEOS Energy and the Company at launch, replacing David Bucknall."
So saw that as a trigger for Ineos to get their foot up. the ass / assets realised / something happening even though its small change for their problems.
Sorry, slightly off topic but thought i'd flag an ETF i've purchased recently as i know dividends are important to many on this very useful thread. Global X SuperDividend UCITS ETF USD Acc (LON:SDIP). It suggests in the ticker that it's accumulation but it's distribution and pays approx 10%+ p.a. dividend on a monthly basis. The monthly income is particularly useful. It's stated aim is: "The Solactive Global SuperDividend® v2 Index tracks the equity performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world."
I'd maybe caution on their strategy. The top divi payers can sometimes be paying big divis cos the co. share price has been hit - often for a good reason. Other top divi payers may well be tried and trusted long haul survivors but have little chance of growth so share price goes nowhere / down. Surely this is reflected in the capital lost since in the last 3 years - that virtually wipes out any gains from the large divis paid, and maybe more. 2022 -23.5%, 2023 -11.3% and 2024 -8.8%.
Thanks Lincs, all valid points and always good to hear all perspectives. I'd (probably positively biased as I've bought) explained away those points to myself. I'm hopeful of the general recovery in the ETF when we eventually see markets recover and i do like the diversification it offers. £6500 investment gives me about £60pcm which is nice.
Indeed a 10%+ divi is great - as long as your capital isn't rapidly reducing. When you say 'I'm hopeful of the general recovery in the ETF when we eventually see markets recover' I'm not sure what you mean by 'markets recover'? Many global indices have risen during those 3 years - while the ETF's capital continued to fall. Some indices rose quite considerably and in some cases currently sit quite close to record highs. I think you'll find there might be other investments with superior TRs.
Caught my eye
The approach sounds like the "dividend dogs" screen. https://www.stockopedia.com/sc...
However it looks like the total return since inception (06/08/11) has been -9.84%...
The process seems to be fairly sound (to me)
SELECTION POOL
• Listed on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
• Dividend Yield > 6% and < 20% on the Selection Day for companies which currently are not Index Components, Dividend Yield > 3% for
companies which currently are Index Components.
• Market Cap of at least $500 MM USD on the respective Selection Day.
• Average Daily Volume in the last 3 months of at least $1,000,000 USD on the respective Selection Day.
• Dividend Forecast is at least stable, i.e. there is no offi cial announcement as of the Selection Day that dividend payments will be cancelled
or signifi cantly reduced in the future.
• No Closed End Fund, Partnership (both Qualifi ed Publicly Traded Partnership and non-qualifi ed Partnership) or Trust.
• No BDCs (Business Development Companies).
RANKING
• To determine the initial composition, the companies in the Selection Pool are ranked in descending order according to their Dividend
Yield. The 100 companies with the largest Dividend Yield on that day are then chosen as Index Components.
• On the annual Adjustment Days, if a company is included in the Selection Pool, it is only removed from the index composition if its
Dividend Yield on the Selection Day is not in the Top 200 of the Selection Pool. In this case, the company with the largest Dividend Yield
that is currently not an index member is chosen as replacement.
• Once a quarter (ten business days before the last trading day in May, August and November), the index components are screened for
dividend cuts or an overall negative outlook concerning the companies’ dividend policy. Companies may be excluded on these quarterly
reviews and will be replaced with the top ranked company from the selection pool that is currently not an index member.
WEIGHTING AT SELECTION
• All Components are equally weighted.
REBALANCING
• Annual rebalance occurs over a rolling 5-day period beginning on the last business day of February. Quarterly reviews occurs over a rolling 5-day period beginning on the last business day of May, August and November.
...but the long term outcome hasnt been great.
Good post — it highlights the underperformance often seen in funds that focus exclusively on the highest-yielding dividend stocks. As I noted in my earlier replies to 33smile, these strategies tend to result in capital erosion over time, and they typically fail to capture any subsequent share price recovery.
High dividend yields are frequently the result of declining share prices, which in turn may reflect underlying issues such as profit warnings or sector-wide challenges. Companies facing operational difficulties often reduce or suspend dividends, prompting such funds to divest (so they might buy higher yielding stock) before any potential recovery in the share price can materialise.
Furthermore, when a company’s share price does begin to recover, the yield naturally declines — again triggering its removal from the fund. This creates a structural bias against holding recovering stocks, thereby limiting opportunities for capital appreciation. The overall result is a persistent drag on both income stability and total returns.
Anyone know why Schroder European Real Estate Investment Trust (LON:SERE) jumped up around 4% today?
Results are due Wed 18 Jun 2025 There is an online meeting 9am – 10am (BST). You can register on their website. But why the price should move a bit not sure.
Worth noting that Schroder European Real Estate Investment Trust (LON:SERE) has the French govt tax bill potential liability hanging over it. Any news (leaked or official) on that being resolved is going to move the SP - not that I'm making an accusation of insider trading!
Regional REIT (LON:RGL) I hold. Given the corporate activity in the property sector- trusts and listed PLC's I am surpised RGL is still on a large discount of 47%. Mid may the board stated this ""Furthermore, with our transformed balance sheet, Regional REIT is well placed to take advantage of the significant opportunities ahead for value creation within the portfolio. The business is implementing these initiatives and will continue to pursue our strategic disposals programme. While the fruits of our efforts may not translate into our financial statements before 2026, the business is doing all the right things today operationally to deliver value to shareholders. In the meantime, we continue to reward our investors with an attractive covered dividend.""
I wonder if they will remain as an independent company by 2026 ? Borrowings are fixed and hedged at 3.4% for 2025, disposals were 4.9% above pre-sale valuation; although post quarter end 2 disposals were made at 2% below pre-sale value. The net loan to value ratio is 42%. Current disposals total £106.2m and they only mentioned £23.9 of capital expenditure.
They do not mention reducing the debt of ££315m , but one would hope the board will.
I am comforted by the fact compared to 2024 the Assets are stable, bank debt and loan to value ratios steady. Current yeild is 9.97 and the dividend is covered-though the board do state future dividends are dependent on financial position at the time.
A degree of risk, but the risk /reward ratio looks favourable to me.
Comments welcome.
Charles. I haven’t looked at Regional REIT (LON:RGL) for a while but it has a long record of wildly over optimistic updates and underachieving. Debt was out of control but they got away it by a whisker with a rescue rights issue this time last year, along with a 1 for 10 share consolidation. Debt is still high but the rights issue has put Regional REIT (LON:RGL) on a somewhat sounder footing. Note from the section you pasted that the usually over optimistic Managers admit that “the fruits of their efforts may not translate in to our financial statements until 2026.”
You might get a better reply from someone who holds, and/or unlike me has kept an eye on recent news from RGL, but aside from the possibility of a bid aren’t there much better and less risky alternatives in the REIT sector?
Ken, buy when out of favour. I assume they have learnt a lesson and a new chunky shareholder is there.
Genini AI concludes "In conclusion, investors should exercise caution. While Regional REIT has taken positive and necessary steps to strengthen its balance sheet and has a clear strategy to enhance asset values, the current dividend is not sustainably covered by earnings. A prudent approach would involve closely monitoring quarterly operational performance, specifically rent roll, occupancy rates, and EPRA earnings, as well as the progress of its capital expenditure and disposal programs. Any investment in Regional REIT should be considered a higher-risk proposition, fundamentally betting on the successful execution of the turnaround strategy and a sustained recovery in the regional commercial property market to justify current asset values and the potential for future dividend payouts." The whole report is too long to publish here, but happy to share if anyone wants it emailed.
Thanks Charles for posting that section from the Genini AI on Regional REIT (LON:RGL). It matches what I think about Regional REIT (LON:RGL) . I.e a risky punt.
Indeed. I was thinking of averaging, but decided against it. Though I will monitor as any slip by them and I suspect a low bid will be forthcoming.
Seraphim Space Investment Trust Link to the latest Space sector newsletter(LON:SSIT) https://www.theaic.co.uk/aic/n...
Having considered what to do overnight I am holding onto my investment- I think there is a strong probability of a couple of IPO's over the next 4 months, which could prove the business model therefore reduce the discount further.
Empiric Student Property (LON:ESP) "
The Board of Empiric (the "Board") notes the recent press speculation and confirms that, on 7 May 2025, it received a non-binding proposal from The Unite Group PLC ("Unite") to acquire the entire issued and to be issued share capital of Empiric."
FSV have a Citywire presentation as I type.
Supermarket Income REIT (LON:SUPR)
Supermarket Income Reit will become the latest trust to leave the sector as it plans to transfer its listing from the closed-end funds category to a regular commercial company listing on the London stock exchange.
I agree that after the very fast 30% share price gain for BlackRock World Mining Trust (LON:BRWM) it looks better to wait before buying. Barring unexpectedly good news from China, there’s a good chance the Mining sector will continue to have those big up and down days, and it’s ahead of the next up spell that it’s best to buy and not after it. But Rio Tinto (LON:RIO) has not joined in the recent gains and is now at a level it has bounced from several times since 2020 covid low.
Also, and again just to check out if this whets your appetite, and not tips, I rarely buy small company shares these days, since switching from most of them to cash in on the extraordinary dividends available from shares and Trusts. But the exceptions are Cavendish (LON:CAV) and Capita (LON:CPI) Cavendish and Finn Cap have combined and so are no longer competing for the same business. And there are clear signs that Cavendish (LON:CAV) is now winning increasing business. And maybe more IPOs soon too? Share looks very cheap. I bought at 10p and averaged down at 8p and it’s now back to 10p.
Capita (LON:CPI) I’ve held for a whole and it looks a classic recovery share with new Management determined to reverse the multi year decline. Since I bought I found that Rockwood Strategic (LON:RKW) a very strong performing Trust is also very keen. They cover CPI in Results updates. And both CAV and CPI get coverage from the Stocko team on the Daily stock threads on Results days.
Like you Ken (and some others here) I have been transitioning out of smaller company shares for a while - I like the concept and have had some good results, and enjoy the research etc, but my current situation (early retirement and living off my investments) means I could do without the volatility.
Every couple of months I find myself taking a big kick in the teeth and watching as my investment vanishes down the drain - I appreciate that its sort of the risk/reward, I could have made better choices, plus if I simply held on it would probably come back - last weeks was hVIVO (LON:HVO) but there have been a few others.
None of them make a life changing difference, but it is a frustration I could happily live without, and hence drifting back towards a more collectives (IT's & UT's) style is slowly taking place.
I have a lot of IT's, but I am also the guy on this thread that also likes a few UT's - I hope nobody minds me sharing some of these as well.
My latest "finding" and investment has been the new UT TM Brickwood UK Value Fund - the new fund set up by the ex-Jupiter manager Ben Whitmore and a couple of others (Dermot & Kevin Murphy from Schroders).
It's obviously very early days, but thought I'd highlight it - I normally look for a good, consistent track record to justify the UT fees, but in this case I am slightly biased on the managers track record. There is no performance stats yet as it is a recent launch, but here are its Top-10;
Nice to see BlackRock World Mining Trust (LON:BRWM) coming back from injury. I am looking at dropping Henderson Far East Income (LON:HFEL) and potentially going for an EM trust - any thoughts?
Augmentum Fintech (LON:AUGM) has done well over the last couple of months, as has Golden Prospect Precious Metals (LON:GPM) and as a trust that holds a lot of small miners I feel that there is more to go as they begin to catch up with the rise in gold price which has not fully flowed through yet.
TR Property Investment Trust (LON:TRY) whilst making a bit of a comeback since early April still doesn't float my boat massively, so an opportunity there to also top slice. I am beggining to think that there is an opportunity that the oil price might be open to some volatility (see today's John Authors article) so might look around and see what is available around there.
Good luck all.
Hi Kevin
That was a very interesting post that I’ll reply to on the Investment Trusts when I’ve got more time.
For now just one question. What is the appeal of a new Unit Trust for mainstream UK shares ahead of say an established Trust like Fidelity Special Values (LON:FSV) with a record of consistent outperformance?
https://www.theaic.co.uk/aic/f...
There’s no risk of being locked in if there’s a sudden cataclysmic event causing a mass exodus. Doesn’t that possibility have to be considered in these dangerous times? The Fidelity Special Values (LON:FSV) discount is small, but a Unit Trust will never trade at a discount. And a Unit Trust can’t use gearing to enhance performance (though gearing works both ways).
And there’s no chance of selling or buying at once on sudden very good news (e.g when the covid vaccine news came while the Markets were open). Nor be able to sell immediately on sudden terrible news.
The only time I would opt for a Unit Trust is if there isn’t an Investment Trust alternative.
9 times out of 10 I would opt for an investment trust but some Unit Trusts have an outstanding performance record and shouldn't be ignored. One that I am looking at is Ranmore Global Equity Fund (Investor) Accumulation Performance Charts & Tables
Ian Shadrack published a good video about this UT:
How to Pick a Fund that consistently outperforms
Yes - that’s my biggest single holding.
Ken - in response to your question, the time I pay up is if I consider the manager to be extraordinary. I have a lot of IT’s for the reasons you say, but once in a while a managers performance is worth the cons.
I will do a few comparisons later - but currently at the airport heading away.
I agree that’s impressive performance from that Ranmore Unit Trust. It’s up 22% over 1 year , 75% over 3 years and 145% over 5 years. BUT except gor 1 year performance haven’t the Global Investment Trusts done significantly better still? Here’s the AIC link for the Global Trusts performance etc:-
https://www.theaic.co.uk/aic/f...
That Ranmore 1 year performance beats all those Investment Trusts, but that’s mainly because the discounts have widened with even Scottish Mortgage Investment Trust (LON:SMT) on an unusually wide 11% discount to NAV.
Over 3 years both Brunner Investment Trust (LON:BUT) up 91% and AVI Global Trust (LON:AGT) Global up 89% did even better than Ranmore.
And over 5 years 7 Trusts out of the 11 total did better, with Scottish Mortgage Investment Trust (LON:SMT) up 288% compared with 145% for Ranmore.
Also the sector average gains for the Unit trusts were significantly worse at+ 4.5% 1 year, 23.5% 3 years and 51% 5 years, compared with 10%, 47% and 212% for the Investment Trusts.
btw …..where there are differing opinions here, that can be helpful to newcomers to either Unit Trusts or Investment Trusts or both. reading posts here. And the same applies with contrary views on individual Trusts.
Hi Ken,
Here are the charts for the funds/IT's mentioned above.
I used to the rate the team at Royal London in a similar vain for their Global Equity Select fund - but 12+ months ago they all left. I think they may have ended up at an obscure boutique fund, but cannot seem to find the details.
However, my main point stands, that sometimes I feel that a certain fund manager is worth following - and I think Sean Peche meets that bill, hence I have my highest % holding here. He had an interview on Merryn Talks Money a few months back. I like as well that his performance is consistent - very tight within trend lines.
Thats not to say there aren't other great Global IT's and I also invest here, for further diversification - whether that be style, country/area/region etc
I agree that all views are welcome and I get a lot of ideas from here - my next project is to take a relook at Vietnam. Selling out a couple of months back turned out to be not my greatest decision, but I think I will take a look at a different IT this time. Still happy with my exit form the US though :-)
Hi Kevin
Have a good holiday.
Thanks for all that further info. With our investment decisions if it works, then do it, including going for Unit Trusts sometimes. I prefer Trusts with conviction portfolios (and the same would apply if opting for a Unit Trust. That value Unit Trust you highlighted has not got a conviction portfolio) with a high percentage in their TOP10 holdings. e.g as is the case with the very successful Rockwood Strategic (LON:RKW) and also both the Vietnam Trusts covered here VinaCapital Vietnam Opportunity Fund (LON:VOF) and VietNam Holding (LON:VNH) .
Sorry to read of your badly timed Vietnam sale. That big April dip did turn out to be a buy opportunity. Don’t know which Vietnam Trust you went for, but for a good while nowvVietNam Holding (LON:VNH) has done better than VinaCapital Vietnam Opportunity Fund (LON:VOF).
As for Henderson Far East Income (LON:HFEL) I’m still holding as 10% a year (it’s 11% for those buying now) is in itself a good annual return and there are hints of improved performance, though not yet convincing!
As for TR Property Investment Trust (LON:TRY) as your REIT choice…..aren’t there better alternatives and with those paying bigger dividends? Difficulty unless deciding to holding several is which alternative to go for. Aew UK Reit (LON:AEWU) is the class act but the discount is small. Perhaps Schroder European Real Estate Investment Trust (LON:SERE) still on a big discount?
Thanks Kevin, interesting. I see GPM is above the subscription price so will have another look at it. Obviously should have bought it a while back, although I have done well with a direct investment in an Aussie miner Perseus Mining (ASX:PRU) . Up a lot on my original investment, but have sold quite a lot on the way up, just sold another 50% at a 10x profit ! Rare bit of good fortune but I have held since PRU was Cluff Gold which became Amara mining before PRU bought it. And I only bought it because I was a fan of Algy Cluff back in the 1980's!! Just showw how fickle the investment game can be.
Strange name change
SEIT appear to have changed their name from SDCL Energy Efficiency Income Trust to SDCL Efficiency Income Trust. It's a rather odd choice but it's what their RNS says and it's what company's house says. Hargreaves Lansdown however have decided that they really meant SDCL Energy Income Trust which makes more sense.
Seraphim Space Investment Trust (LON:SSIT) Interesting presentation today and sounds like -if all goes well- we could at last see an uplift in the NAV, which has done nothing since launch. The discount has narrowed, to the extent i would be cautious now as any failure on the IPO's they think might happen could see the discount widen again. But they did tease with a suggestion of news re one holding by next quarter report date.
As I am up 20% following the recent price moves I am tempted to take a profit.
Impressed that you managed to squeeze in 'uplift' & 'launch' when mentioning a Space trust :-)
Without even trying!
Just in case anyone wants to follow this up, I’ve added to Rio Tinto (LON:RIO) today at £43.60 50. It’s bounced a bit off the 5 year low. Bad news looks well priced in now. And it’s a big dividend payer in the up years. e.g 20% dividend a couple of years ago. Rio Tinto (LON:RIO) is also the biggest holding at 8.1% in the BlackRock World Mining Trust (LON:BRWM) portfolio.
There are never any guarantees but the tactic of buying quality after big falls and at or near multi year lows works far more often than not, e.g my BlackRock World Mining Trust (LON:BRWM) top up a bit over £4 probably looked bonkers to some who saw the post, but it’s now almost 30% higher just a month later. BlackRock World Mining Trust (LON:BRWM) is the best way in to the big mining shares for any not wanting to hold the shares themselves, and as with Rio Tinto (LON:RIO) the dividend is very big in the good years.
Thanks for the heads up Ken.
The 5 year chart of BlackRock World Mining Trust (LON:BRWM) vs Rio Tinto (LON:RIO) is interesting - they mirror each other over that time, except for the last couple of months (where BRWM has risen, and Rio has dropped). Thus I have added some Rio today as well (as BRWM at 511p now looks expensive, although I wouldn't have said that 6 mths ago!),
Tim, Thanks for pointing out BRWM. I have sold my wife's holding and bought Real Estate Credit Investments (LON:RECI) on a 9% yield .
I have had a full position in Real Estate Credit Investments (LON:RECI) for a number of months, Charles. I'm happy with it as a sort of bond proxy, but I'm in it for the dividend, really. Do you see any substantial capital gain potential beyond 140p?
Not a huge NAV increase, Amanda wants income from a large part of her portfolio. I would expect the discount to disappear as (hopefully) bank rates drop.
Ditto
Rio Tinto (LON:RIO) looks like it's still in a downtrend, so might go a bit lower still, however agree that aside of unforeseen events downside would be limited. The chart of the last couple of years makes it look like a very tradeable share. I'll certainly be keeping an eye on it.
Is Rio Tinto (LON:RIO) the sort of thing you gently trade in and out of, Ken? Companies like these do seem to float up and down over a year and have the liquidity to be 'played'. Just wondering, as my Phoenix group (LON:PHNX) is pretty much at my TP and has risen 'too fast', but I'm not sure what to swap for. Just love those divs, but other high-yielder thoughts welcome. My problem is, having Legal & General (LON:LGEN) and M&G (LON:MNG) as well, their prices seem to influence each other, and I'm running out of high-div, deep value sectors...
No I rarely trade in and out of shares these days, but if I did Rio Tinto (LON:RIO) would look a good choice. The 5 year chart shows that buying the dip would have worked every year. And the 2025 buy opportunity looks right now. I do occasionally add to an already maximum stake (did that recently with BlackRock World Mining Trust (LON:BRWM)) and then look to sell that bit to get the stake back to my maximum again.
The main reasons I no longer trade shares is because luckily we’ve reached the stage where the portfolio generates so much in annual income that I’ve no need to. The current big dividend paying choices available, both shares and Trusts, is extraordinary, so cash in to the opportunity while it lasts.
And past capital gains (e.g extraordinarily fast Mining sector gains in 2016 after the extreme Mining bear market that ended in 2015) put our portfolios on a firm footing. I’m not bothered with making money for its own sake. It’s a hobby now so I still have a few fun punts like Cavendish (LON:CAV) and Capita (LON:CPI) but the core portfolios stay the same except for switching from one Investment Trust or share to what seems a similar better alternative.
Final reason is needing a portfolio that can run itself in the event of my demise. Isn’t that something we should all consider unless having partner or family members who also have investment expertise?
Interesting, Ken. We have a lot in common, including the increasing desire to have our own portfolios able to remain OK on automatic. Which why I also recommend them to family members. Re: trading, I didn't mean fast, just that from time-to-time I think that big FTSE shares can be bought at annual lows and resold within the year for a 15-20% bounce (having perhaps picked up a div.), without really needing to believe in the company. Rio Tinto (LON:RIO) may indeed be a suitable candidate right now, with an expectation of 5000p at some stage. I used to do it, until I decided I didn't understand how banks really worked and should never try them again!
But on this basis, I should sell Phoenix group (LON:PHNX) now and transfer to Rio Tinto (LON:RIO). Just struggling to let go of that gently rising div in a company I took time to understand. And I have got out of mining at every opportunity, now I see how much they are at risk of political whims and global price volatility.
Ditto raggedtp. I.e interesting.
A key reason why I don’t look to sell, even temporarily, the big winners in our portfolios except on iffy news, and the same applies to the one I run for my brother in law , is for important cosmetic reasons. They see the big winners when they look at their portfolios and are reassured, and they mean even in market dips the portfolio looks healthy. Selling removes those gains, and reassurance, and if I buy again and the price drops they forget it was a previous big winner and see it as a loser. And current overall portfolio performance looks much worse too.
Using the Buffett tactic of buying when most are selling (I.e on big market dips) means I buy some subsequent big winners, which for this reason need never be sold except for sold investment reasons. e. g like CQS Natural Resources Growth and Income (LON:CYN) up 284%, Blackrock Energy and Resources Income Trust (LON:BERI) up 138%, Marks and Spencer (LON:MKS) up 245% Temple Bar Investment Trust (LON:TMPL) up 132% TP Icap (LON:TCAP) up 161% etc. Also the dividend yields at those bombed out prices are often well in to double figures on top.
Also not sure about your point about the Mining sector being that affected by political whims. For now it IS very affected by China news and would also take a hit from a widespread recession. But against that demand from clean energy is going to increase a lot, and the big Miners learnt from expanding too fast years ago, and now it has gone from excess supply ahead to supply shortages ahead. Hence imo the current sector weakness looks a good buy opportunity.
Seraphim Space Investment Trust (LON:SSIT) shareholder meeting 11 am today. Email this seraphim@secnewgate.co.uk to register.
Thank you for keeping this thread going, Charles. I also see no real reason why SDCL Efficiency Income Trust (LON:SEIT) is so low. But then, we are heavily invested and holding. Perhaps it is unloved for a couple of reasons. Firstly, it is a pretty technical trust, covering a wide range of energy efficiency solutions, which most people aren't interested in understanding. I should know: I started a small company in this area in the UK in 1990 and gave up fast, as people's eyes just glazed over, even when I showed how to save them money with no capital expenditure. It's just not sexy. Secondly, a lot of this is in the US, and people may think the rollback of the IRA will hurt. SDCL produced a blog post on why the impacts should be limited, https://www.sdclgroup.com/blog... . While I will also sign up to the results presentation, we are holding steady for now, comforted by the dividend apparently being covered. I don't expect an uplift this year, but it's huge.
I have to say, we are now invested in 10 different new energy/energy efficiency/infrastructure trusts, partly for income opportunities I think I may never see again, and partly because there will be consolidation, and I don't want to miss out!
I mayu well buy more after the meeting
While I don't hold quite as many as 10, I also hold a number of new energy/energy efficiency/infrastructure trusts, mainly because of the high yields and large discounts available (helpfully pointed out by contributors in these threads). I often wonder if I'm too exposed to this sector, but hopefully buying in at such already large discounts limits any potential downside.
That was a very helpful post raggedtp including the link you provided. Seems there’s a chance that SDCL Efficiency Income Trust (LON:SEIT) is woefully undervalued on that 52% discount and I’m tempted to average down. I’m 10% down at present. And 14% dividend means that even if it is cut, the yield should still be high.
I hold 7 in the Renewable sector and went for the biggest yielders, and GCP Infrastructure Investments (LON:GCP) from the Infrastructure sector.
Ken, If they cut the dividend questions will be asked.
It’s reassuring that you’re so confident about no SDCL Efficiency Income Trust (LON:SEIT) dividend cut Charles. My doubts about a possible cut, stemmed from the section I’ve pasted below from their March trading statement. I sold then but posts here made me wonder if I was either misinterpreting it or reading too much in to it, so I bought SEIT back again.
I.e on the dividend; there’s no mention of FUTURE dividends. Then in the very next section they remind that some of the portfolio requires ongoing capital support. Of course it will……but again I wondered if putting that bit immediately after the dividend sentence rather than in a later section, was a further hint of a cut?
Here’s that section:-
“Shareholder dividend
During the Period, the portfolio's stable operational performance has supported distributions to SEEIT that have covered the target dividend of 6.32p per share, with a cash cover in line with the previous year.
Total return growth
SEEIT's portfolio was built to target the largest and fastest growing opportunities for energy efficiency. While it is diversified by industry, technology and geography, and each investment is structured to deliver stable and growing income as well as the potential for meaningful NAV growth.
As previously reported, some of this portfolio growth requires ongoing capital support. During the year to 31 March 2025, SEEIT invested c.£165 million into the organic opportunities presented by the portfolio. Much of this was to address Onyx's pipeline of commercial solar projects that deliver low cost, more reliable energy to its customers across the US.
The Board and the Manager continue to apply a disciplined focus to the capital allocation policy. This means that any use of capital must meet or exceed the return threshold implied by the alternative of buying back shares at the time of deployment. In practice, investments are expected to yield a mid to high teens return on NAV.
During the Period, this investment into the portfolio has been funded through a combination of capital recycling and debt. The Manager remains committed to reducing the RCF over time as well as lengthening the portfolios debt term by extending or adding project level financing that is aligned with the duration of the contracts. In the near term this is targeting new financing facilities at its Oliva and Zood (the Asset Co of EVN) investments. Both processes are progressing, with advisers appointed.
I read this dated 6th March 2025 "The Company is targeting an attractive total return for shareholders, with a stable dividend income, capital preservation and the opportunity for capital growth. The Company is targeting a dividend of 6.32 pence per share in respect of the financial year to 31 March 2025. SEEIT's last published NAV was 90.6p per share as at 30 September 2024."
The SDCL Efficiency Income Trust (LON:SEIT) trading update covered in my post yesterday was 4 weeks later on March 30th. They could have reiterated that reassuring March 6th comment on future dividends, but didn’t. Why not? ‘It was that change behind my sell decision then before buying again. Heavy selling might also be significant…..or Funds escaping when they should be buying more.
We’re in the dark until they next update, but a big plus is that the discount (if NAV genuine) is huge and a maintained dividend and even slightly upbeat update could give a good boost to the share price.
Ken, I no expert on listing rules but if 4 weeks later they thought the dividend was not going to be as stated they should have said so, in my opinion. Certainly if it is cut I will be contacting the Stock Exchange .
I’m also no expert on listing rules, but they said nothing about future dividends on a March 30th so if later they have to cut it, I can’t see how they would be falling foul of the rules. There are plenty of examples of Companies and (fewer) Trusts (e.g DG19) issuing shock profits warnings or trading updates, along with dividend cuts or cancellations, sometimes only a few weeks after being upbeat.
Who knows ken- this was in the 31/3 statement but maybe that is a historic fact rather than a suggestion ample dividend cover "
Shareholder dividend
During the Period, the portfolio's stable operational performance has supported distributions to SEEIT that have covered the target dividend of 6.32p per share, with a cash cover in line with the previous year.
SDCL Efficiency Income Trust (LON:SEIT) going ex-div 12th June, divi maintained at 1.58p
Tim, that is a relief.
Thanks Tim.
As Charles has posted that SDCL Efficiency Income Trust (LON:SEIT) dividend news sounds reassuring. I’ll definitely hold now and wait for the Results on June 23rd.
What I can’t fathom is the huge volume on so many days including another 6 million already today. There must be one or more big sellers, but why??? We should find out on Results day. If Results genuinely reassure there could be a bounce.
Agree Ken. SDCL Efficiency Income Trust (LON:SEIT) is a mystery. Selling continues at volume, although it is good to see that the price has been stable at ~44p for several days (a nice change from the relentless falling). Either we are missing something, or there is a forced exit.
At 50% discount to NAV the valuation would have to be seriously wrong to be under current SP, and even if the divi was halved it would still be good at ~7% (although if the divi was cut I'd hate to see what the SP response was!).
Raggedtp, I'd be very interested to know what your other favoured situations are in the sector. And when you write *we* do you speak as a fund manager or pi? Thanks, B5.
Oh gosh, Brucie5. Please do not take this as personal financial advice, etc. I am a pi, but investing and advising on behalf of personal and several family funds (inc. now JISAs). Enough to matter.
Holdings in the sector Foresight Environmental Infrastructure (LON:FGEN) ,Foresight Solar Fund (LON:FSFL) ,GCP Infrastructure Investments (LON:GCP) ,Gore Street Energy Storage Fund (LON:GSF) , Greencoat UK Wind (LON:UKW) ,NextEnergy Solar Fund (LON:NESF) , Octopus Renewables Infrastructure Trust (LON:ORIT) , SDCL Efficiency Income Trust (LON:SEIT) ,Renewables Infrastructure (LON:TRIG) and VH Global Energy Infrastructure (LON:ENRG) .
My TPs suggest my current favourites to be SDCL Efficiency Income Trust (LON:SEIT) ,Gore Street Energy Storage Fund (LON:GSF) and NextEnergy Solar Fund (LON:NESF), but then, I'm underwater on them! However, their dividends compensate pretty quickly. VH Global Energy Infrastructure (LON:ENRG) is in profit and is also high on my upside to TP list, and I don't have a full position there: but they gained 15% within a week of me mentioning them and their div is now under 9%. So hard not to get greedy. They also have a nice, balanced portfolio, I feel, and are ungeared. V solid.
Raggedtp, many thanks. We seem to have a lot of shares in common and like you, I run a few folios other than my own!
As for VH Global Energy Infrastructure (LON:ENRG) - I will investigate.
For a non dividend play, I believe Charles has mentioned Hydrogenone Capital Growth (LON:HGEN) , currently on a 70% discount. The chart looks interesting and there may be some opportunity for catchup with ITM's recent momentum? I believe they are waiting to sell some assets in order to demonstrate NAV - or is that just the impression of shareholders?
I've noticed that the infrastructure funds have picked up over the past few days: Sequoia Economic Infrastructure Income Fund (LON:SEQI) GCP Infrastructure Investments (LON:GCP) HICL Infrastructure (LON:HICL)
Is there a reason for this in particular or just people moving into this cheap unloved sector with very high yields?
Does anyone hold or have any views on Polar Capital Global Financials Trust (LON:PCFT) On a small discount and intending to payout 4% of NAV as new dividend policy imminently. Also a continuation vote shortly but given holdings I can’t envisage why would not pass.
Chelsea, PCFT is a sound investment in my opinion. I would hold but rather over weight in Augmentum Fintech (LON:AUGM) and whilst PCFT is very different as it holds listed I do not want further exposure to financials- I hold Legal & General (LON:LGEN) M&G (LON:MNG) and Aberdeen (LON:ABDN) as well.
Thanks Charles. Quite like the banking sector but dont want to be exposed to single stocks and it seems to have a global spread and therefore diversified. I also hold insurance financials; Aviva (LON:AV.) Legal & General (LON:LGEN) M&G (LON:MNG) Polar Capital Holdings (LON:POLR) primarily for income although the share prices recently have perked up which is a bonus.
Investor Meet Company this week - just the below
INDIA CAPITAL GROWTH FUND LIMITED
Annual General Meeting
5th Jun 2025 at 11:00am BST
He will present the half year results of the Trust for the six months ended 31 March 2025. You will also have the opportunity to pose questions during the session.
Wednesday 18 June 2025
09:00 - 10:00
Virtual Investment Trust Portfolio update
Thanks again to number33 for posting the latest state of the Virtual Investment Trust portfolio. It looks good at a casual glance because of the near £1700 increase since last month.
The reality though is that performance should be way better and a reason it isn’t because too often when buying or topping up my own Investment Trusts or reading posts here covering what look like excellent new buys, I don’t even think about using (as I should!) some of the current £7000 cash to buy any of them for the portfolio.
To give a few recent examples of this; Charles covered what looked a strong buy case for Seraphim Space Investment Trust (LON:SSIT) and I bought it….but why not for the portfolio too? The same on April 7th when Charles posted a very reassuring reply from Craig of VietNam Holding (LON:VNH) when the share price had crashed thanks to Trump’s tariffs. I posted that I had topped up VietNam Holding (LON:VNH) on April 7th at 261p. It’s now 30% higher at 341p. I also topped up BlackRock World Mining Trust (LON:BRWM) and VinaCapital Vietnam Opportunity Fund (LON:VOF) both up 20% since, the same day. Again none for the portfolio! Ditto when there were plenty of posts here when Supermarket Income REIT (LON:SUPR) looked far too cheap at 65p. It was. Now up 30% to 82p but none added to the portfolio. I also forget to sell when selling or reducing one of my holdings, or after an obviously disappointing update.
It doesn’t really matter as most will make their own buy and sell decisions. And most of us know that investing in a wide range of Investment Trusts often works well, and that’s why we invest in them and use some of the good posts here to add another tool for our decision making. And disappointing though performance over the last 3 years has been, it’s no worse than the UK indexes and a lot better than the awful long term performing AIM index.
Where the portfolio might be very useful is for anyone only just starting to look at Investment Trusts as it gives a good indication of the many sectors and Countries and Regions we can use Trusts to invest there. And the big gains for Virtual Portfolio Trusts bought years ago are also useful in showing the gains it’s possible to achieve.
Thanks for bringing this up to date Charles. I particularly look forward to hearing your further views on SDCL Efficiency Income Trust, which I hold between gritted teeth. Or is it truly a gift horse?
Thanks again Charles for the update. Like Brucie5 I hold (a lot, maybe too much) of @SEIT, don't believe there's anything too negative but will be reassured if you come to the same conclusion. Am also down circa 30% on @RGL but think I will struggle to convince myself to buy more. @GROW is also a current holding and nice that it rallied somewhat in May. To add to your list, I think @PIN, a large fund on a near 40% discount, is also in interesting territory.
I struggle with PIN. Presentations are always great, performance no so. But maybe I should look again.
SDCL Efficiency Income Trust (LON:SEIT) I can see nothing to suggest any issues. The target dividend has been mentioned twice in the last 9 months, no RNS to say that it was in doubt. There is a presentation on June 23rd so might wait for that before increasing my holding. Email seit@cardewgroup.com if you want to attend. Will be interesting if they do let private investors- it states for investors and analysts. I have requested.