Investment Trust- Thoughts (November 2024)
Investment Trust- Thoughts (November 2024)
Links to older monthly thoughts-reader request.
October Thoughts September Thoughts. August Thoughts.
July Thoughts. June Thoughts May Thoughts. April Thoughts.
March Thoughts February Thoughts. November 2023 Thoughts
Investment trusts realising assets spreadsheet
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.
October 2024 Investment Trust monthly performance.
Top 10 (Equity only)
British and American Investment Trust (LON:BAF) +23.9%
Baillie Gifford Us Growth Trust (LON:USA) +7.7%
Schiehallion Fund (LON:MNTN) +6.6%
North American Income Trust (LON:NAIT) +6.1%
CT UK High Income Trust (LON:CHIB) +6.1%
Middlefield Canadian Income PCC (LON:MCT) +6%
Jupiter Green Investment Trust (LON:JGC) +6%
Jpmorgan Emerging Markets Investment Trust (LON:JMG) +5.9%
JPMorgan American Investment Trust (LON:JAM) +5%
Pantheon Infrastructure (LON:PINT) +4.5%
Bottom 10
Molten Ventures (LON:GROW) -15.8%
Oryx International Growth Fund (LON:OIG) -12.8%
Downing Strategic Micro-Cap Investment Trust (LON:DSM) -12.2%
Chrysalis Investments (LON:CHRY) -8.6%
Miton UK Microcap Trust (LON:MINI) -8.5%
Fidelity European Trust (LON:FEV) -7.5%
Blackrock Greater Europe Investment Trust (LON:BRGE) -7.2%
Fidelity Japan Trust (LON:FJV) -6.9%
HICL Infrastructure (LON:HICL) -6.7%
Top 5 (All Trusts)
Tetragon Financial (LON:TFGS) +35.5%
British and American Investment Trust (LON:BAF) +23.9%
Atrato Onsite Energy (LON:ROOF) +18.6%
Ecofin US Renewables Infrastructure Trust (LON:RNEW) +11.2%
UIL Finance (LON:UTLH) +10.9% ( Not sure about this, seem to be 3 pref shares listed)
Bottom 5
Molten Ventures (LON:GROW) -15.8%
JPMorgan Global Core Real Assets (LON:JARU) -14.6% ( Again 3 classes listed ?)
Oryx International Growth Fund (LON:OIG) -12.8%
Downing Strategic Micro-Cap Investment Trust (LON:DSM) -12.2%
Aquila Energy Efficiency Trust (LON:AEET) -10.7%
Interesting performances this month. Molten Ventures (LON:GROW) maybe down to the resignation of the CEO. Jpmorgan Emerging Markets Investment Trust (LON:JMG) was a surprise- not sure why as the NAV actually was down a couple of pence over the month.
Post budget ( which I do not want to discuss as many are complaining on the daily smaller company pages, although it could have been worse and pensions coming into IHT was well flagged) looking at overseas trusts may be increasingly relevant if you think the UK is heading for a rough patch. Personally I think there are still opportunities in the UK market and if the stimulus works maybe some very good opportunities.
Disclaimer
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198 comments
Virtual Investment Trust Portfolio - November Update
Dunedin Enterprise Investment Trust (LON:DNE) (I hold)
Realisation of EV Holdings Limited ("EV") and update on winding-up proposals
Dunedin Enterprise Investment Trust PLC ("DENT" or the "Company") is pleased to announce that regulatory approval has now been granted for the realisation of EV, a provider of high-performance video cameras and quantitative visual analytics to the global energy industry. The investment in EV is held via DENT's interest in Dunedin Buyout Fund III LP.
As at 30 September 2024 the Company's investment in EV was valued at £2.6m. Proceeds received from the transaction amount to £2.7m, consisting entirely of capital.
Following this realisation, the Company has remaining unlisted investments valued at £5.9m, cash balances of £26.8m and other net assets of £0.5m. As previously noted, the Company also has outstanding capital commitments to limited partnership funds of £6.9m.
Pursuant to its managed wind-down strategy, the Company's investment objective is to conduct an orderly realisation of its assets in a manner that seeks to achieve a balance between maximising the value of the Company's investments and progressively returning cash to shareholders. The Board and its advisers intend recommending to shareholders a members' voluntary liquidation of the Company. Any such winding-up will require shareholder approval and the Company intends to publish a circular to convene a general meeting shortly. A further announcement will be made imminently.
Just updated the NAV's on the Realising Assets spread sheet. One Trust I am going to look at is Aquila Energy Efficiency Trust (LON:AEET) . Has anyone researched this
Harmony Energy Income Trust (LON:HEIT) NAV at 31/10/24 was 88.51.
After DGI9 I am loathe to assume any buyer will be at NAV. They state the portfolio is now fully operational- though suffering outages. They are using a discount rate of 10% for operational projects.
Asset Sale Process
As previously announced, the Board appointed JLL to seek offers for some or all of the Company's assets. The process has attracted strong interest and an encouraging number of non-binding offers were received in September, relating to both individual assets as well as the full portfolio. A selected number of parties were allowed to progress through to the detailed due diligence stage. The level of due diligence being undertaken is thorough and has resulted in bidders requesting more time. The transaction timetable has therefore extended by one month. Subject to receipt of sufficiently attractive final offers, the intention would be for the Company to enter exclusivity with a preferred bidder in December with a view to signing binding agreements in January 2025.
Foresight Environmental Infrastructure (LON:FGEN) is another recent buy of mine. I was reassured by the recent presentation on IMC. If you are considering it, these presentations are a great use of your time. I think the management are learning the lesson that hydrogen is a risky niche, but the write-down of their one investment in that area knocked their share price by twice as much. Everything else seems OK. This is an IT (formerly John Laing Environmental) that is established, diversified, solid, with plenty of indexed uplift and ability to keep raising their divi with inflation. I added at sub 74p. At 75p to buy now, the div is well over 10% and rising, ex-d on Dec 5th, current discount 33%. Really?
No, you won't double your capital quickly, but I think that in a year's time, those of maturer years will wonder why they didn't buy more and will they ever see such pension opportunities again in their lifetimes?
I am climbing the 'wall of worry', having had a pretty full position in SDCL Energy Efficiency Income Trust (LON:SEIT) for months already and not sure how easy the RCF extension will be to fund Onyx and EVN. So I am sure UK shareholders are getting the shivers of DI9 down their backs. But these are much smaller proportions of the business than for DI9.
And the growing businesses are not influenced by the IRA. Onyx in particular is quite like ROOF (Atrato Onsite Energy), so frustratingly being bought out this year. In fact the ROOF sale is the main reason I noticed SEIT in the first place. Given the dramatically reduced prices of solar PV, commercial behind-the-meter solar installations just make business sense, and the opportunity is HUGE.
So, with a touch of trepidation, I bought a little more yesterday, hoping for reassurance next week, and assured almost instant dividend of 3% being secured within a week.
If you want to know more about the man and ideas behind SEIT (and have a dog to walk meanwhile...), try https://www.cleaningup.live/the-biggest-dirtiest-secret-of-the-energy-industry-ep184-jonathan-maxwell/.
Harbourvest Global Private Equity (LON:HVPE) Shareholder letter to the board. https://www.stockopedia.com/sh...
Augmentum Fintech (LON:AUGM) Meeting starts in 30 minutes. I will be asking questions re holdings and asking if the managers would use the performance fee of £19m to buy shares in the open market !Assuming the payment was approved by shareholders. https://www.investormeetcompan...
Good question Charles!
If he answers it ? I am also puzzled why Tide still needs follow on investments.
As usual Tim Levene is very convincing. Rather dodged the performance fee issue I thought- it is deducted from the NAV. I am tempted to increase my holding again. Maybe we will see some of the larger shareholders push for a solution. Share buybacks are not the answer in my opinion, shareholders need to see some significant exits over the next 18 months- in my opinion. I am going to mull it over the weekend.
Had this now- which I am not sure I fully understand "
The performance fee is notional as it represents the performance fee that would be due if all the investments were sold at their book value on the balance sheet date. It is deducted from NAV in order to fairer represent what shareholders can expect to receive.
It varies as valuations go up and down but would only ever be paid once disposals have returned the cost of investments in that performance fee basket plus a hurdle IRR return."
That reads like the best of the Humphrey gobbledygook in Yes Minister, Charles. £19 million seems very excessive!
Thanks for all your digging and very helpful posts here on Augmentum Fintech (LON:AUGM. Their updates have become a bit like a stuck record specially so the last 3 lines in the comment from Tom Levene pasted below.
The “we expect significant capital growth over the LONG TERM “ (my capitals) and then “we are confident that patient investors will be rewarded over time,” strongly hint not to expect significant realisations or other big share price boosting news shorter term.
I still hold a full stake but will probably sell half next week. A possible place for some of the proceeds might be Blackrock Latin American Investment Trust (LON:BRLA) but I haven’t checked it out properly yet. It’s the share price approaching multi year low that might fit the buy the big tip tactic that often works very well.
Here’s that comment from Tim Levene:-
Tim Levene, CEO of Augmentum Fintech Management Limited commented: “This is another period where underlying growth across our portfolio remains strong. Across our top 10 positions, representing nearly 80% of NAV, revenues have grown 52% over the last 12 months. Since listing we have delivered almost £100 million in realisations at an average premium of 33%, and expect significant capital growth over the long term. The asset value of our top four positions plus cash exceeds our market capitalisation, and with a further 22 assets in the portfolio, we are confident that patient investors will be rewarded over time.”
I hold Blackrock Latin American Investment Trust (LON:BRLA) - bought to early but I am pretty sure the region will work out. Last time I checked Div looked OK. Brazil is the largest area they are exposed to so what companies are paying out is important.
Augmentum Fintech (LON:AUGM) Just looked at all the NAVs -Interim and Final since launch. Note in the early years good increase in NAV, which as I recall was also a period where new shares were issued to raise further capital as Shares were at a premium/par. Since March 2022 not a lot.
Is this performance really worth £19m in performance fees? My concern is that early valuations of portfolio companies increased, but there has been a failure to see these companies exit the Portfolio. Tide, Bullion Vault and Zopa were original holdings in 2018. Long time to still be invested in them normally in the PE world.
I am going to continue looking into the portfolio companies held, sold or failed since 2018. Interactive Investors they should have done OK with.
Any errors please correct me- got multiple screens open.
Fidelity Special Values (LON:FSV) had a positive write up in AJ Bell's SHARES magazine (free to platform users). In summary the article says it can perform well over a range of market conditions, performance over the last 10 years has been good and it is trading at a discount to NAV of 9% compared to a 5 and 10 year average of 4%. The manager reckons that his portfolio of 20% to the UK broad market. Dividend has increased for 15 years- last years increase was 8.4%. The yield is just over 3%.
One to buy and just sit on in my opinion- hence in my wife's risk adverse ISA.
Thanks Charles, I have a reasonable position in Fidelity Special Values (LON:FSV) , and will probably top up soon.
I haven't done so to date as it fishes in similar(ish) waters to stocko's UK small to mid cap focus (as well as a balance of large caps), but if I'm perfectly honest I'm getting a bit seasick from the daily gyrations in my individual small cap holdings (eg Brickability (LON:BRCK) Intercede (LON:IGP), the list goes on) so might hand some more of that stress over to FSV management!
Tim- it is what I am in the process of doing. Lack of research available and price movements for sometimes no apparent reason.
Pershing Square Holdings (LON:PSH) Having halved my holding in May at around 4000- yes I missed the peak, held on to long as price began to fall, I have just bought back in. Share price seems to be firming and given Ackman's support of Trump I assume he is confident of the outlook under the new President when he takes office. For those who do not know PSH it has avery concentrated portfolio of 10-12 stocks.
And Pershing Square Holdings (LON:PSH) has an excellent track record. If ou can get into it at times of low, it should bode well for the future. I've held for a while, top sliced when it did very well a short while back, and like Charles will be looking to add.
Are there any podcast recommendations that specifically deal with Investment Trusts
I think Davies does one-Jonathan Davies's website https://money-makers.co/.
Decent interim report from one of my favourite growth investment trusts Cordiant Digital Infrastructure (LON:CORD)
It has been tarnished by Digital 9 Infrastructure (LON:DGI9) which I sadly also hold...
CORD are building an impressive mix of digital assets in data centres, telecommunication towers, fibre optics etc.
The discount has narrowed but is still a large 30% - link to their interim report : CORD-INTERIM-REPORT-2024.pdf and presentation CORD-Interim-Presentation-2024.pdf
Any other holders?
DGI9 yes, enough to deter me from buying anything else in that sector. fro the moment. I have posted about DGI9 re a letter I had from the Chairman. Think it was this month.
Like you, I hold Cordiant Digital Infrastructure (LON:CORD) and have held Digital 9 Infrastructure (LON:DGI9) in the past, unfortunately. I agree that the prospects look good for Cordiant, it's encouraging that there have been significant manager share purchases. I can't remember which interviewee on the excellent Money Makers podcast said that he looked at infrastructure IT's more as trading companies, and used EV/EBITDA as a sense check when looking at purchasing them. On that basis, I would never have bought DGI9 but would still have bought Cordiant.
DEFENSIVE INCOME: I am looking at increasing my exposure to income stocks & trusts within my ISA. I am targeting 5 holdings for a £20k ISA allowance. I need good but safe income (somewhat contradictory I know). This is my list so far requiring further research: TP Icap (LON:TCAP) , IG group (LON:IGG) , HSBC Holdings (LON:HSBA) , Polar Capital Holdings (LON:POLR), Billington Holdings (LON:BILN) , Supermarket Income REIT (LON:SUPR),Smiths News (LON:SNWS).
Any thoughts on these selections. Other ideas welcomed.
Ken has an excellent thread on some good candidates (it is difficult to search old threads!) - link below.
Some examples would be Legal & General (LON:LGEN) M&G (LON:MNG) , which have good divs, intention to maintain those, and are at/near multi-year lows.
https://www.stockopedia.com/co...
Thanks Tim for highlighting that thread in your reply to SC20. The header article is out of date now but the replies under it aren’t.
I’ll come back later with a post listing again a range of big dividend paying Investments Trusts and shares as well as a few where dividend yield is not the focus.
Meanwhile if people haven’t seen it here’s a Dividend thread started by one of Stockopedia’s staff writers.
https://www.stockopedia.com/co...
As usual it’s had little follow up but I’ve posted my thoughts including share and Trust examples in one of my replies. I’m not in to screens and similar for my big dividend paying investments but if anyone reading this post is, then the header article is excellent. I’ve covered my simple alternative method in my replies there.
I'm also looking at doing something similar. Some others you haven't mentioned that are on my shortlist are SDCL Energy Efficiency Income Trust (LON:SEIT) , Henderson Far East Income (LON:HFEL) , Phoenix group (LON:PHNX) , M&G (LON:MNG) , Foresight Solar Fund (LON:FSFL) , Legal & General (LON:LGEN) , Taylor Maritime Investments (LON:TMIP) , Octopus Renewables Infrastructure Trust (LON:ORIT) .
All currently paying good dividends. I haven't pulled the trigger yet on any of them, I'd rather wait to see a change in trend momentum first, even if it means a reduction in the yield percentage I receive.
I’ll post my thoughts re TP Icap (LON:TCAP) Polar Capital Holdings (LON:POLR) Supermarket Income REIT (LON:SUPR) and Smiths News (LON:SNWS) which I hold and hopefully you’ll get other replies too. I don’t hold or follow Billington Holdings (LON:BILN) or HSBC Holdings (LON:HSBA) .
It’s not far fetched to see a lot of current big dividend payers as safe because so many are high because the share or Trust is cheap. Key thing is to check the Company and Investment Trusts updates for info on their future dividends.
The Mitchell Brothers: Thanks guys and no offence intended with the handle I gave you sometime ago. Truth is I have learnt so much from both your contributions but can never remember or trace which of you posted on what investment. From your collective posts I have added trust investments to my portfolio and now note that L&G, M&G and Henderson Far East should be added to my list.
I would add Henderson Far East Income (LON:HFEL) to your research list
SC120
In response to your post, here’s a list of some of the shares and Trusts I hold that might appeal to you too. I’m happy to add more on any of them but in many cases I’ve already posted on the plus case or for some of the shares there’s excellent analysis on Stockopedia. I realise including shares is going off topic, so that’s a one off ahead of the new December thread.
The shares you asked about that I hold and follow:-
Smiths News (LON:SNWS) 8.7% yield. Big plus is further dividend increases very likely. Negative is a slowly declining business. Well covered here by clicking “discussions” to see what Paul or whoever thought on Results days.
Polar Capital Holdings (LON:POLR) 8.5% dividend. Best of the Fund Managers Imo. Again well covered here on Results days.
TP Icap (LON:TCAP) 6% dividend. I bought and posted luckily right at the £1.02p bottom a couple of years ago on Mike Walters bb. There could be excitement with the potential listing of their Paramata business in the US. It could be worth most if not all of the current TP Icap (LON:TCAP) market cap.
Also see my post on a Stockopedia dividend thread. I posted the link for it earlier today.
E.g M&G (LON:MNG) Legal & General (LON:LGEN) Phoenix group (LON:PHNX) covered there. So was Aviva (LON:AV.) …but news tonight that they might be risking bidding for Direct Line Insurance (LON:DLG) .
Others. Abrdn (LON:ABDN) 10% yield. Disaster area for years but that looks priced in with new Management hopefully doing better.
Ferrexpo (LON:FXPO) I bought it again before Trump was elected as it’s becoming clear that the awful war looks like being over soon. Ferrexpo was a big dividend payer before the war.
Gulf Keystone Petroleum (LON:GKP) 8% dividend and share recovering ahead of signs the pipeline might reopen soon. Big dividends again when the pipeline eventually reopens.
Ithaca Energy (LON:ITH) 18% dividend. Hopefully recovery from rock bottom low has a lot more to go.
De La Rue (LON:DLAR) I’ve posted recently on high chance of 50% upside. Also upside for Crystal Amber Fund (LON:CRS) who hold DLR.
Now back on topic for a few Investment Trusts.
I still like the Commercial Property Sector which looks to have bottomed now and starting to recover.
Aew UK Reit (LON:AEWU) 8.5% dividend. I like their balanced property portfolio with 37% in industrials, 23% in retail warehouses, 15% in high street retail and 12% in offices. High Street retail and offices both look over the worst.
Schroder European Real Estate Investment Trust (LON:SERE) 8.3% dividend.
Supermarket Income REIT (LON:SUPR) 8.8% yield and looks so oversold at multi year low.
BlackRock World Mining Trust (LON:BRWM) for Mining sector. They report tomorrow.
VinaCapital Vietnam Opportunity Fund (LON:VOF) I’ve posted (too) ofyen why Vietnam looks a must and whynVinaCapital Vietnam Opportunity Fund (LON:VOF) on an unusually wide discount also looks a must.
Henderson Far East Income (LON:HFEL) 10.8% dividend.Yeats of bad underperformance….BUT new Manager and new strategy showing signs of working.
Hi Ken, thank you for your comprehensive reply. Your posts are always extremely informative and I am grateful to you for sharing. Thanks to others that have replied. Here is my provisional selection of 5 holdings: Polar Capital Holdings (LON:POLR),Supermarket Income REIT (LON:SUPR), Henderson Far East Income (LON:HFEL), M&G (LON:MNG),Twentyfour Select Monthly Income Fund (LON:SMIF.
SC120
I hold all 5.
Guess anyone reading this realises that Twentyfour Select Monthly Income Fund (LON:SMIF) focus is income. (Some Trusts with income in their name sometimes go up a lot as wee).
For those not holding, the best tactic is to buy the occasional small dips as that also gives a good chance of 10% to 20% capital gain on top. I bought Twentyfour Select Monthly Income Fund (LON:SMIF) at 72p a good while ago. A big plus is that monthly dividend payment. A minus is that this Trust is now at a 2.5% premium to NAV. Their Results are on 12th December.
Much the same applies with CQS New City High Yield Fund (LON:NCYF. It too is fully priced on a 6% premium to NAV and again one to buy on the modest dips. I had never invested in it as put off by lack of capital gain potential) until irresistible opportunity at 44p in August 2023 to give an annual yield of 10%. Current yield is still good at 8.7% but like Twentyfour Select Monthly Income Fund (LON:SMIF) it’s fully priced unfortunately.
Thanks Ken, duly noted.
Hi Ken,
I also bought a small holding in CQS New City High Yield Fund (LON:NCYF) at 45.35p around the same time, after you bought it to my attention. It’s up 13.67% as well as the dividends between then and now. It has been a little bit higher previously and may go higher again when interest rates drop again. I treat it a bit like having money in bonds. (with a little capital gain on top) as you say, now at a 5.86% premium with a 8.74% dividend yield.
Graham.
That’s how I see Trusts like CQS New City High Yield Fund (LON:NCYF) and Twentyfour Select Monthly Income Fund (LON:SMIF) Graham, so the way to do it is to buy the occasional dips as you did, and then there’s that useful capital gain on top of bagging the highest point the dividend yield gets to as well.
You could consider some of the IT bond funds which yield 8/9%. Twentyfour Select Monthly Income Fund (LON:SMIF), TwentyFour Income Fund (LON:TFIF), £CVCG. I hold these and unfortunately Billington Holdings (LON:BILN) which seems to have been subjected to constant selling in the past month or so without any negative news to my knowledge
Chelsea- I hold BILN as well. I hope not another Severfield (LON:SFR) stock ! CVC Income & Growth (LON:CVCG) I have not really looked at- looks complex in terms of holdings.
SMIFTwentyfour Select Monthly Income Fund (LON:SMIF) monthly income has been nice and steady for me. Paying over 8%p.a.
Weiss Korea Opportunity Fund (LON:WKOF) The current discount is 5.45%. The one tear range is from a premium of 6.53 to a discount of 7.92%. % year average discount is 1.76%. NAV performamce has been poor -11.99% over 3 year (total return). The Portfolio discount is 47.5% to what the common shares trade at as it holds preference shares-which trade at large discounts. There is a strategic review underway as the board have concluded the future investing in deep discount preference shares(my interpretation) is less attractive than in the past. It would seem that like Japan activism by shareholders is on the rise.
Whether this is a buying opportunity I am not sure. Whether the Pref assets can be sold would be my concern.
Vietnam- economic update " in a report presented by the Prime Minister at the 8th session of the 15th National Assembly, the government said it estimates GDP growth in 2024 to reach 6.8%-7.0%, higher than the plan of 6.0%-6.5% set at the beginning of the year. It now aims to achieve GDP growth that surpasses the plan for 7.0-7.5% in 2025 in order to rank 31st-33rd globally (in terms of GDP) by this time next year. It announced ambitious targets for the period 2026-2030, with GDP growth aimed at 7.5%-8.5%, compared to 6.5%-7.0% for 2021–2025. The country’s General Secretary, To Lam, said "Vietnam is entering an era of national advancement”. His statement and the grand plan for the period of 2026–2030 demonstrates the Vietnamese leadership’s strong determination to drive socio-economic development through 2030."
TR Property Investment Trust (LON:TRY) (I hold) Interesting they have bought into UK physical property for the first time since 2015. "These acquisitions mark our first foray back into purchasing physical assets for almost ten years and underscores our focus on core rental growth markets such as light industrial. Our investment team has long recognised the resilience and growth potential of light industrial assets, particularly in light of UK businesses efforts to de-risk global supply chains”
Seems they are targeting light industrial buildings with low EPC ratings and it would seem by atting Solar panels etc hoping to increase rental yield. "This would build on the recent ESG refurbishment of another TR Property physical asset, Ferrier Street Industrial Estate in Wandsworth, London where an A+EPC rating has been achieved."
One property has an initial yield of 7.5%, the other 5.75%. Interesting move by the Trust and will watch with interest. They can hold a maximum of 15% in physical properties. Following these two investments they are getting close to 10% in direct property holdings.
TR Property Investment Trust (LON:TRY). I have a long term albeit small investment that I keep thinking of increasing….. The team there always impress.
Thanks Charles. Very interesting point re added value from installing solar panels. Do you or any other reader have any feel for landlords in general intending to make such a move?
Mark
I think it is happening- certainlySupermarket Income REIT (LON:SUPR) as I recall had them on some of the properties and Atrato Onsite Energy (LON:ROOF) , beinging taken over, do this.
Disappointed with the update from Augmentum Fintech (LON:AUGM) today as there’s nothing in it to light up the long moribund share price.
Has anyone a more positive take on their Results?
Simon Thompson will probably find it all hunky dory as usual (I won’t know as I no longer subscribe to Investors Chronicle) but a rise in the share price (which sometimes signifies one of his updates) after the so far no change reaction, could provide a better chance to sell. Unlike other Trusts I hold not seeing much share price excitement, there’s no big dividend to compensate. I’ve a full holding so am tempted to halve it rather than sell the lot just in case there’s a bid. Or maybe I’m too pessimistic about their update today.?
Schroder Real Estate Investment Trust (LON:SREI) also issued Results today. They were good and included another 3% dividend increase. But the negative is that the share price has risen from the very good value 42p when I bought and posted on Stocko this time last year to 52p, so the dividend yield even with the increase announced today is only 6.9%. I’ll jump at the chance to top up if the share price drops to 44p to give 8% yield again.
Otherwise for now I prefer others I hold like Aew UK Reit (LON:AEWU) on 13% discount and 8.4% dividend, and Supermarket Income REIT (LON:SUPR) at a multi year low and 8.7% dividend and 22% discount to NAV. I never saw the attraction of Supermarket Income REIT (LON:SUPR) when it was so popular and on a big premium, but do now when it looks very oversold and a bargain.
Also in the Commercial Property Europe sector Schroder European Real Estate Investment Trust (LON:SERE) is worth considering on a huge 32% discount and 8.2% dividend. Tritax EuroBox (LON:EBOX) in the same sector was also on a big discount before going up over 60% from the lows on bid approaches. Worth holding Schroder European Real Estate Investment Trust (LON:SERE) and collecting the 8% yield in case the same happens?
The Commercial Property Sector has clearly bottomed, but the slower than hoped for interest rate cuts might mean a further wait for significant share price gains, unless there is corporate action for any of them.
Finally back to Schroder Real Estate Investment Trust (LON:SREI) . Note this comment included in their Results Statement today.
Alastair Hughes, Chair of the Board, commented:
"We have witnessed some yield compression for the first time since June 2022 and, perhaps more importantly, tenant demand outstripping available supply in several sectors driving rental growth and overall returns. This favourable momentum combined with our quality portfolio, strategic asset management, cost discipline and our low cost of debt should provide the opportunity for sustained and growing income."
Ken, I stopped reading IC years ago- partly due to the tips ST peddled. Positives in AUGN " As at
30 September 2024, the valuation of our top four positions in Tide,
Zopa Bank, Volt, and Grover, plus cash, was above our market
capitalisation, attributing no value to our £119 million of other
investments"
Negative re Farewill- whose services I used FOC- which may explain a lot, bit concerning this is the comment " The Farewill transaction mentioned above highlighted that the
Company’s investment policy did not make specific provision for the
circumstance of a portfolio company being acquired in a share for share
transaction with a lock-in on the shares taken as consideration.
Accordingly, the Board has made a non-material update to the
investment policy to cover such events, which do happen from time to
time in the world of private technology investing ".
Alarming that although share transactions do occur in the private equity world they had not thought about it !
I will continue to hold, but in hope rather than expectation.
Just seen this note in AUGM "
A performance fee is payable by the Company to AFML when the Company has realised an aggregate annualised 10% return on investments (the ‘hurdle’) in each basket of investments. Based on the investment valuations and the hurdle level as at 30 September 2024 the hurdle has been met, on an unrealised basis, and as such a performance fee of £19,000,000 has been accrued by the Company, equivalent to 9.9 pence per share (31 March 2024: 18,980,000; 11.2 pence per share). This accrual is reversed on consolidation and not included in the Group Statement of Financial Position.
The performance fee is only payable to AFML if the hurdle is met on a realised basis. See page 25 and Note 19.9 of the 2024 Annual Report for further details. Any allocation of the performance fee by AFML to its employees is made on a discretionary basis."
They do state the NAV reflects this.
HI Ken. Simon Thompson last reviewed Augmentum on 31/10/2024. He said they were chronically undervalued and maintained a buy recommendation before the results. What are your thoughts on Simon?
Augmentum Fintech (LON:AUGM) I don't think there was anything particularly wrong with the results, more a case of no real news to excite markets - it's deeply undervalued but they'll need to realise one of their larger positions to drive a rerating. I'm sure this will happen at some point, but no idea when so could require patience. Until then it will probably drift around current level. Grover looks a a bit wobbly so will probably see further write downs there.
No dividend but they are at least doing buybacks (albeit quite modest). The £19m performance fee accrual is slightly alarming, but I guess this represents several years fees and will only be paid when they make a profitable exit - plus it's already factored into the NAV.
Seraphim Space Investment Trust (LON:SSIT) (I hold) Looks like the portfolio is performing OK. The NAV reduction was due to FX movements. "As at 30 September 2024, the USD/GBP rate was 1.341. Since the US elections on 5 November 2024, the US Dollar has strengthened significantly. Using the USD/GBP rate as of 22 November 2024 (all other variables unchanged), the fair value of the portfolio as at 30 September 2024 would have been £208.2m, up from £198.4m using the 30 September 2024 USD/GBP rate."
Still on a large discoiunt which seems harsh given the potential of the portfolio. They state 57% of the portfolio is fully funded (according to management figures).
Thanks for the analysis on Seraphim Space Investment Trust (LON:SSIT) , Charles. V useful (I hold). The share price does lurch around, but I’m glad to see what looks like a clear upward momentum at the moment.
It does indeed Indie.
I think i might have been Charles earlier in the month that highlighted Syncona (LON:SYNC) as an interesting bio-tech trust. Apologies if I got this wrong.
It has lost 50% in the last few years and now sits at a discount of 40+%.
A few words from Citywide;
Syncona (SYNC) has fallen to an all-time low of 99p, galling for investors who saw the shares more than double to a 290p peak in 2018 after the merger two years before of the former Battle Against Cancer trust’s with the investment arm of Wellcome to create what was the UK’s biggest listed life sciences fund.
That’s no longer the case after shares in the £630m Guernsey investment company halved in the past three years and continue to be weighed down by weakness in its main holding, the US Nasdaq-listed Autolus whose blood cancer treatment recently passed phase II trials.
There may also be pressure on the stock if it has been sold as a holding from the recently merged Alliance Witan (ALW), which is no longer listed as a shareholder by data provider Refinitiv.
That’s left the shares on a 44.6% discount and a ‘cheap’ -2.3 Z-score near the bottom of our table which given the recovery elsewhere in biotechnology could offer a big re-rating opportunity in time.
Just highlighting it as a potential opportunity. None of the bio-tech funds have done well over the last few days following Trumps Health Secretary appointment, but I view this as short-term noise and a potential buying opportunity - I also like the look of Polar Capital Global Healthcare Trust (LON:PCGH) and as a single company opportunity hVIVO (LON:HVO) .
Citywire highlighted Syncona (LON:SYNC) reaching an all time price low. I have had a look at the last presentation and having read this I am not sure any rush to buy . Apart from the fact it is written in a peculiar style, the overall impression I got was that there might be significant asset growth but there are significant risks this might not happen !
I will monitor during next year and have signed up for company news on their website.
"A capital access milestone is a de-risking event for a portfolio company that is expected to enable access to
capital, which underpins progression towards a company’s next milestone. It is less likely that a capital access
milestone will drive significant NAV growth for Syncona, for example by increasing the possibility of a realisation event, such as M&A.
A key value inflection point is a material de-risking event for a portfolio company that has the potential to drivesignificant NAV growth for Syncona, for example by increasing the possibility of a realisation event, such asM&A. These milestones can also enable companies to access significant capital including through financings
and IPOs, which may take place at valuation uplifts and underpin progression to a subsequent key value
inflection point which has the potential to drive greater value. M&A or capital access is unlikely to occur
immediately following a key value inflection point.
• Eight key value inflection points expected by the end of CY2027, including three expected before the end
of CY2025. These have the potential to drive significant NAV growth. Syncona is funded to deliver on all
of the portfolio’s key value inflection points
• Nine capital access milestones across the portfolio expected by the end of CY2026, with seven expected
by the end of CY2025
• These capital access milestones and key value inflection points are not without risk
Further detail on individual capital access milestones and key value inflection points can be found in the life
science portfolio review. Detail on portfolio company delivery against individual milestones can be found within the supplementary information."
Sorry Charles - I missed you had posted this yesterday, before I wrote the piece below about Syncona (LON:SYNC)
Both obviously think worth watching. I will hold fire for now.
Trusts reporting next week.
Tuesday 26 Nov
Augmentum Fintech (LON:AUGM)
Caledonia Investments (LON:CLDN)
Schroder Real Estate Investment Trust (LON:SREI)
Wednesday 27 Nov
Jpmorgan Global Emerging Markets Income Trust (LON:JEMI)
Thursday 28 Nov
AVI Global Trust (LON:AGT)
BlackRock World Mining Trust (LON:BRWM)
Fidelity Special Values (LON:FSV)
Premier Miton Global Renewables Trust (LON:PMGR)
Worldwide Healthcare Trust (LON:WWH)
Friday 29 Nov
Canadian General Investments (LON:CGI)
Thinking of buying EJF Investments (LON:EJFI) for my wife's ISA. Good yield and from what I look read the outlook for small/medium US banks is positive. Any insights would be welcome.
Excellent yield, but apart from the last couple of months it's been a poor performer.
Looks like quite a complex trust and one that isn't easy to get the head around with lots of complex financial instruments. Good luck - I hope it goes well.
Kevin- it is complex and trying to work out why a few years ago the price was a lot higher ? Could be one of those off radar investments that works out. Div seems secure and asset risk appears very low.
Charles,
There was a Citywire video of that trust a couple of months ago with the CEO. Should be able to find it on Citywire. I watched it but decided I could get nearly 10% on something like Legal & General (LON:LGEN) Phoenix group (LON:PHNX) M&G (LON:MNG) Abrdn (LON:ABDN) and it’s a British Co’ that I can keep my eye on more easily and understand the Macro’ and markets here more easily. It also seemed over complicated and I felt the CEO was just a good salesman.
only my thoughts………?
Graham.
Thanks Graham. I have done nothing about buying yet. Some-thing is niggling at me about it and as you say some companies like Legal and General ( which my wife holds) with a decent yield.
Charles,
‘When in doubt - stay out!’
Might be the mantra here. Also, easier to keep your eye on British companies and be able to hold on with confidence if they drop down, whereas if you’ve got US trusts or companies, I’m sure the unease in that situation will be increased. At least that’s how I felt when I looked at it.
Graham.
There was a very good interview with the CIO a couple of months ago which explained the investment policy/risks etc and I thought it was very compelling. Neither HSBC nor LLoyds will permit me to buy it. I wrote to the company and no response!
Thanks Chelsea
Investor meet company next week
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LTD
Investor Presentation
25th Nov 2024 at 12:00pm GMT
CQS NEW CITY HIGH YIELD FUND LIMITED
Investor Presentation
26th Nov 2024 at 11:00am GMT
SCHRODER REAL ESTATE INVESTMENT TRUST LIMITED
Half Year Results for the period ended 30 Sept 2024
26th Nov 2024 at 1:00pm GMT
NEXTENERGY SOLAR FUND LIMITED
Interim Results
26th Nov 2024 at 2:00pm GMT
CQS NATURAL RESOURCES GROWTH AND INCOME PLC
Investor Update
27th Nov 2024 at 11:00am GMT
CT PRIVATE EQUITY TRUST PLC
CT Private Equity Investment Trust 3Q24 update.
28th Nov 2024 at 12:00pm GMT
Augmentum Fintech (LON:AUGM) Results are this week on Tuesday 26th Nov.
The shares remain at a big discount not helped by Yorkshire Pension Fund selling down their holding. Simon Thompson (Investors Chronicle) remains keen,
Latest NAV is 169p. Share price £1. Previous updates have shown nearly all their invested Companies doing well. Also Augmentum Fintech (LON:AUGM) has 11% in Bullion Vault a silver and gold online market place and Bullion Vault have recently reported record profits…..as they should with precious metals on a roll. But the Augmentum Fintech (LON:AUGM) stake is only valued at £13 million.
As Simon Thompson reminds, £48million of the Augmentum £168 million market cap is cash. Augmentum Fintech (LON:AUGM) looks way undervalued. Will the Results update give the shares a boost? Or is the drag big investors like Pension Funds not interested and selling down their Investment Trust stakes, with small Invrstor buying not being enough to counter that?
Unless there’s very unlikely shock bad news on Tuesday, downside risk looks very small. Fingers crossed for those of us holding that good Results are greeted with the share price responding and then the gains getting built on.
For a LOT more on why Augmentum Fintech (LON:AUGM) looks good here’s my post after their previous Results. Since then the share has fallen from 115p to just £1. So it’s even better value now.
“Augmenttum Fintech (LON:AUGM) is at a stunning bargain price, with the only obvious problem being investors, as is the case with too many Investment Trusts on big discounts to NAV, still not recognising this.
Note the first bit of their Portfolio highlights update today; their top 3 holdings plus cash covers almost all the current market cap with all the other often quality holdings doing well, in the share price for free.
Also all exits from the portfolio so far have all been above the last reported value and have realised £89.6 million proceeds compared with about £34 million originally invested in them.
AND NAV is up again to 167p, yet Augmentum Fintech (LON:AUGM) can be bought for just 115p. Don’t know how long before investors wake up or before it attracts a bid or amalgamation, but it looks a steal as a lockaway buy. I hold but only with modest 5% gain ….so far.
Portfolio highlights
The valuation of the top three positions (Tide, Zopa Bank and Grover) plus a strong cash position, was just below Augmentum’s £170 million market capitalisation at year end. These three companies have grown revenues by an average of over 1,300% since initial investment and are either profitable or expected to reach profitability without further funding.
Top 10 holdings, which represent 81% of portfolio value (31 March 2023: 78%) grew revenue at an average of 65% year-on-year (31 March 2023: 117%) and are cash generative (five positions) or have an average of 203 months cash runway.
Cushon’s majority shareholding acquisition by NatWest Group completed during the period, and returned £22.8 million to the Company, delivering a return of 2.1x multiple on invested capital and an IRR of 62%.
Post year end: exit from Onfido through the acquisition by Entrust, delivering a return of 1.3x on invested capital and an IRR of 5.8%.
There have now been six exits from the portfolio since inception all at or above their last reported value, which have realised a cumulative £89.6 million in proceeds – £55.9 million over their original cost (c2.7x invested capital).
IRR of 16%4 on invested capital since inception (31 March 2023: 18.5%).”
Simon Thompson being keen does not fill me with joy. I hold.
I agree about Simon Thompson Charles, but he does get some very right. Hope Augmentum Fintech (LON:AUGM) is one of those.
Lets hope-I am a long term holder , but would be nice to see a re-rating.
The share price performance contrast between Vietnam Trusts VinaCapital Vietnam Opportunity Fund (LON:VOF) and VietNam Holding (LON:VNH) has now reached extreme levels, making this a great buy opportunity for VinaCapital Vietnam Opportunity Fund (LON:VOF) if like me confident that Vietnam is a great market to invest in.
I highlighted (and topped up my own holdings in both VOF and VNH then) what looked a very good buy opportunity for both of them on Mike Walters website where I used to post in November 2022. That turned out to be the bottom of the Vietnam market dip then.
But note these facts now!
VietNam Holding (LON:VNH) was 229p then. It’s now 387p and up 60%.
BUT VinaCapital Vietnam Opportunity Fund (LON:VOF) in extreme contrast, is now almost at just £4.28p, back to that 2022 low!
Now to NAV.
VietNam Holding (LON:VNH) has gone to a small premium with NAV at 394p and share price 387p. The big discount then to the share going to a premium has been a double plus for holders by boosting the share price gain.
VinaCapital Vietnam Opportunity Fund (LON:VOF) has gone to an unusually wide 26% discount with NAV at £5.72p and share price only £4.28! The widening discount compared with the reverse for VNH is a part reason why the share has done so badly.
The Vietnam index has been range bound between 1200 to 1300 since February. It bounced a bit today after again falling to about 1200. Short term this trading range might continue but in time there’s a high chance imo that 1300 will be left well behind……with the bottom of this trading range the time to look to buy. Where will their index be by the time, hopefully next year, Vietnam gets full Emerging Market status? Better to be in before the market starts to price that in?
I hold both VOF and VNH but right now it’s VNH that looks fully valued and VOF a real bargain buy opportunity.
Ken- I would agree looks cheap- but then the performance has been poor for VOF over 5 years. Maybe it is the size of the trust ? Far bigger than VNH-£853m v £91m. VinaCapital also run open ended funds , an ETF and Offshore funds. Whereas the managers of VNH as far as I know only run the trust?
An argument could be that VOF as a quoted vehicle is the "flagship" and they need to sort its performance out to continue attracting funds into the other funds. I need to look into this more, but looks cheap ratio to NAV.
Thanks Ken & Charles - an interesting observation on VinaCapital Vietnam Opportunity Fund (LON:VOF) & VietNam Holding (LON:VNH) . Something clearly happened about Sep last year when the SP seemed to start its divergence - until then they seem to be roughly in the same ball-park.
Something to do a bit more work on to understand any difference and then maybe look to invest.
Charles and Kevin.
I don’t think the concerns raised by Charles are a reason for the share price underperformance of VinaCapital Vietnam Opportunity Fund (LON:VOF) compared with VietNam Holding (LON:VNH).
The KEY reason is staring us in the face!
It’s the simple fact that VietNam Holding (LON:VNH) has now gone to a small premium, while VinaCapital Vietnam Opportunity Fund (LON:VOF) is on an unusually wide 25% discoumt to NAV.
Now to the position in November 2022 when I posted on the very good buy opportunity then and topped up both of them, after sharp Vietnam index falls.
VietNam Holding (LON:VNH) NAV then was about £3. It’s now £3.94 so up around 30%.
VinaCapital Vietnam Opportunity Fund (LON:VOF) NAV was £4.72 then and is now £5.78. So up about 20%.
So. Yes. VietNam Holding (LON:VNH) has done better but nowhere near as well as the soaring 70% share price.
The VNH share price is up from 232p then with the share trading at a big discount to £3.94p today for a 70% gain on that 30% NAV increase. I.e way more than the NAV increase.
But VinaCapital Vietnam Opportunity Fund (LON:VOF) share price has done the opposite and way underperformed that 20% NAV increase. Share is only up 5% since then from 410p to 433p with NAV up 20%. What a contrast! VNH share price is way outperforming the increase in NAV. VOF share price is way underperforming the NAV increase.
(Note that VietNam Holding (LON:VNH) fell 16p yesterday.Possibly the start of investors reacting to that VinaCapital Vietnam Opportunity Fund (LON:VOF) undervaluation compared with VietNam Holding (LON:VNH) at last?). Note too that again the Vietnam index has bounced from 1200.
fwiw I continue to prefer VinaCapital Vietnam Opportunity Fund (LON:VOF) to VNH at their current valuations, but I hold both. And it’s VOF that looks the stunning bargain priced buy……ahead of promotion to Full Emerging Market status probably next year and perhaps as early as Spring.
AND btw Charles, in case you haven’t looked closely at the VIRTUAL PORTFOLIO number33 is now posting here, both VinaCapital Vietnam Opportunity Fund (LON:VOF) and VietNam Holding (LON:VNH) are successful holdings in it with VinaCapital Vietnam Opportunity Fund (LON:VOF) up 77% and VietNam Holding (LON:VNH) Up 90%.
VinaCapital Vietnam Opportunity Fund (LON:VOF)
Interesting article from Ian Cowie (ii writer) today, link below - he's sold VOF for fears that Trump could be going in hard for Vietnam (as he comes to realise that China is too large to hit with 60% tariffs). Who knows whether he is correct, but is an interesting viewpoint.
https://www.ii.co.uk/analysis-...
Thanks Tim for that warning from Ian Cowie. What Trump does is often guesswork. Yet another thing I learned the hard way though, is not to invest on guesses of what might happen, either mine or writers like Ian Cowie. .Too often they were wrong.As always though off it works for us then do it, including on trying to preempt what might ir might not happen.
My success rate was far better though once I based my investment decisions on what is happening and on what the Companies and Investment Trusts I hold are saying and reporting in their updates.
Also the obvious like the figures, and for me, buy low when sentiment is bad and top slice or sell when good news looks fully priced in. A current non Investment Trust example is Intercede (LON:IGP) where I bought (that decision helped by Paul Scott’s excellent analysis) around £1 and took the stake out with PE above 40 at £2 and sold the rest recently at £1.70. Intercede (LON:IGP) would be tempting again around £1.10 assuming news updates still good. But, and another factor in the sell decision, was latest update less upbeat than hoped.
Shares like Intercede (LON:IGP) and Cavendish Financial (LON:CAV) which could fly if there are eventually a series of IPOs at long last for smaller companies, are just the fun edge of our portfolios. The portfolios dominated by the long term Investment Trust holdings often covered in posts on these threads.
AJ Bell SHARES presentation . I have just bought into Biotech Growth Trust (LON:BIOG) . Timing might be wrong but liked the story.
Please find below the links to the presentations:
Biotech Growth Trust:
https://media.moneyam.com/a/2024/11/1-Biotech-Growth-Trust.pdf
ShareSoc-In the first in an exclusive series of joint webinars Edison’s Neil Shah will be joined by Milosz Papst and Neil Maruoka to discuss findings from their report, “Healthcare-focused Trusts: A Sector on the Mend?”
https://www.sharesoc.org/event...
SDCL Energy Efficiency Income Trust (LON:SEIT) seems to be on a relentless daily plunge (similar to several other renewables/infra ITs). I tend to agree with you that this sell off looks overdone, but spotting the bottom is tricky as every day brings new lows (we are about to hit the all time low of 51.8, last seen in Feb '24)....
Also, as per Charles comment, the NAV accuracy on these trusts is not an exact science, to put it mildly, (see Digital 9 Infrastructure (LON:DGI9) woes on what can go wrong), so there could be some read across from that.
SEIT interim results are on December 4th, so I'm going to continue to monitor the price as we get closer to that date (every time a Stocko price alert is hit I enter a new one 1p lower, and sure enough that is also hit within 24hrs - brutal); if I'm feeling reckless I'll part average down pre-results (and then again post results).
My view is that talks on the RCF have been the trigger for a descent in the share price. This would need to be settled before I would consider to buy back in.
Interesting announcement from Edinburgh Worldwide Investment Trust (LON:EWI) this morning. newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241120:nRST8723Ma
Hopefully this strategy will improve sentiment and lead to outperformance again after years of flatlining.
SDCL Energy Efficiency Income Trust (LON:SEIT) . Anyone know why this has continued to drift down so far? If it's the Trump effect, I believe sellers are mistaken, as I don't think many of their projects are affected by the IRA.
At around 53p, they are over 40% discounted from the latest NAV. And they said in https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240930:nRSd1265Ga that they are in discussions to partner up with others to scale up. Jonathan Maxwell started the Manager, SDCL, in 2007, has does extremely well in pNearomoting the large-scale energy efficiency, and only just seems to be getting going...https://www.cleaningup.live/the-biggest-dirtiest-secret-of-the-energy-industry-ep184-jonathan-maxwell/
My family is already quite invested, but is this a case of averaging down being a good idea? Nearly 12%, covered, dividend at this price. It's not going bust, and I would hate it to ANOTHER of our ITs to be bought out at a discount.
Looks like Rathbones are selling stake down. Dividends are always an issue at the moment. Having had bad experiences recently with a few infrastructure trusts I would be wary.
Augmentum Fintech (LON:AUGM)
AUGMENTUM FINTECH PLC will be holding a Interim Results meeting on 29th Nov 2024 at 10:30am GMT.
Please click on the button below to accept the meeting invitation.
Biotech Growth Trust (LON:BIOG) Summary slide from this evenings online presentation. Kennedy's potential appointment is a slight concern -if approved.
Biotech Growth Trust (LON:BIOG) I have held through ups and downs, this can be a volatile Trust to own but I continue to believe in this sector. The long term trends indicated above have been repeated in their presentations for the last few years. Encouragingly, M&A activity had picked up and I think the strongest factor will be the patent cliff faced by Big Pharma, who will be forced to pay up for small cap biotech in order to cycle into new products.
Digital 9 Infrastructure (LON:DGI9) Many weeks alter a response form the Board. Lots of big words to say nothing !! Why on earth was Arqiva invested in !!
"Thank you again for your feedback below.
The role of Panmure Liberum is to act as financial adviser and they have advised on the investment management arrangements. Panmure Liberum have provided support for the review process including the review of the existing management arrangements and engaging with a number of high-quality investment management firms in a rigorous selection process. Through this process, and taking into account feedback received from major shareholders, the Board determined that the appointment of InfraRed Capital Partners Limited (“Infrared”) was in the best interests of shareholders for a number of reasons set out in D9's 11 October 2024 announcement, which included that their appointment brought in highly specialised and experienced investment professionals with a strong track-record of accretive divestments. To appropriately align InfraRed with shareholder outcomes, InfraRed is entitled to receive a performance fee for achieving certain shareholder distribution targets and is committed to use 10% of their annual management fee (net of taxes) to acquire shares in the market. For clarity, the minimum term of their contract is 2 years.
We note your comment regarding the Board "self-managing" the wind-down. The Board considered that the better course was to retain the services of a new third party with specialist expertise to assist in the managed wind down.
As previously announced, the process for the sale of the wholly owned assets of D9 is underway and the Board looks forward to providing material updates on the sale process to shareholders, as necessary. The Board continues to believe that the launch of the sale process for D9’s stake in Arqiva requires more consideration due to the complexity of the business and the co-shareholding structure and is exploring various options for Arqiva. One of the key benefits to the appointment of Infrared was their track-record in accretive divestments, so as to help maximise value for shareholders through the managed wind-down. In relation to the Board’s historical actions in respect to the acquisitions, the Board remains mindful of its duties.
Regarding InfraRed’s knowledge of Arqiva, based on InfraRed’s significant experience in the digital infrastructure space dating back many years and across investments, divestments and active management, InfraRed has developed a deep understanding of Arqiva’s business plan, growth drivers and key risks. It also has relationships with Arqiva’s senior management and co-shareholders.
With regard to the independent valuation firm used in respect to the recent valuations, for confidentiality reasons, the name of the firm cannot be disclosed.
The Board is in ongoing discussion with Triple Point regarding revised commercial terms and intends to update all shareholders at the earliest opportunity.
We appreciate you taking the time to provide the feedback to us. As we believe we have answered your questions to the extent we are able to do so, we will deem your complaint as closed.
Eric Sanderson
Chair of Digital 9 Infrastructure plc"
Does anyone hold JPMorgan Emerging Europe Middle East & Africa Securities (LON:JEMA) . Given the trust is on a premium of 357% and comments in chairmans statements are negative regarding the recovery of assets held in Russia, just wondered what the sub-plot is ?
A brief reply on Trusts and questions from recent posts here.
Check that I’ve got this right as I don’t hold or follow JPMorgan Emerging Europe Middle East & Africa Securities (LON:JEMA. (I sold it at the start of the war along with Ferrexpo (LON:FXPO) which I bought back again a few weeks ago as it was becoming clear that an end to the war and carnage in Ukraine is likely soon).
That huge 357% premium to NAV reflects JPMorgan Emerging Europe Middle East & Africa Securities (LON:JEMA) ‘s Russian assets currently being valued at zero. Is that premium reflecting what these might be worth once reinstated?
Re Crystal Amber Fund (LON:CRS) .
Don’t know Rob Hughes (assuming you see this post) whether you saw my post on Crystal Amber Fund (LON:CRS) and the section taken from Crystal Amber’s recent Results on De La Rue (LON:DLAR) their key remaining holding? MMI has great potential and has been independently valued at £77 million. BUT the fly in the ointment is that Crystal Amber Fund (LON:CRS) Is winding down and that was expected to be completed by the end of this year. So though MMI has great promise, maximising the returns from MMI might not be easy. As explained in this bit on MMI in their recent Results:-
“As the Company will not have realised all of its investments by 31 December 2024, it is intended that by the end of the first quarter of 2025, the Board will consult its larger Shareholders and/or make arrangements to seek Shareholder approval on the future strategy of the Company, including steps that might be necessary to maximise the opportunity to realise value from the remaining assets of the Company. In particular, as MMI is very likely to be the last investment held by the Company, there will need to be careful consideration of the best structure through which to hold this investee company in order to maximise its potential in a cost-efficient manner.”
Finally re Augmentum Fintech (LON:AUGM) and Charles’s concerns after the hit from Hydrogenone Capital Growth (LON:HGEN) ……there isn’t any link between them is there? Hope not.
Ken- It was my mental hit rather than a connection between AUGM and HGEN- heard the same tale of "things will come to fruition" !! But hanging on in hope.
I have doubts Russia will be letting any assets leave Russia post war- probably seize them to help with re-building what they have destroyed-assuming Trump's deal involves them keeping part of Ukraine.
A quick thanks to Charles for all you do on this thread. Massively useful.. In case it's helpful I thought I'd add to the conversation. I've taken a punt on Crystal Amber Fund (LON:CRS) this morning. Although slightly frustrated on the lack of transparency on the fund (Major holding details on their website details that as at 30th June 2024 they had an equity holding in 5 companies but then only lists two of them) it seems to boil down to a pharma play. The fund has expressed intent to return funds shareholders and press releases detail about the increase in share price of De la Rue. But these seem to be overshadowed by the holding in Morphic Medical. My estimates are that their c81% holding in Morphic represents around 65% of the portfolio. I significant increase in audited NAV appears confirmed last week and they appear to be set up to commence European sales of their primary offering (a diabetes and weight loss solution that will try and take a bite out of the Ozempic market share) next year. (They had stated Q4 2024 and have recently recruited for Germany). FDA approvals also appear to make entry into the US market next year). Definitely a gamble, but potential upside could be significant. All views and insight welcomed.
Thanks Rob. Not one I have looked at , saw Ken mentioned as well.
Totally missed that - damn Ken's good! :)
I have taken a small holding in CRS. Thanks Rob and Ken.
There could be some repercussions from the new Trump presidency in the Far East. Whether the administration will really start a global trade war-who knows and as we all know Trump ins unpredictable and from what he said will impose tariffs, despite the damage it would do to the US consumer and inflation. Having said that I am not selling any of my Trusts invested in the Far East- which are Scottish Oriental Smaller Companies Trust (LON:SST) , India Capital Growth Fund (LON:IGC) , Ashoka India Equity Investment Trust (LON:AIE) ,VietNam Holding (LON:VNH) ,VinaCapital Vietnam Opportunity Fund (LON:VOF) , Nippon Active Value Fund (LON:NAVF) ,CC Japan Income and Growth Trust (LON:CCJI) , Henderson Far East Income (LON:HFEL) . I am out of China for the moment and unlikely to buy in until next year when Trumps p[olicies become clearer. Though i did read today Musk has been talking to the Chinese admin for several years.
So I do have quite a large % of holdings in the region which I firmly believe over the next 5 years will show good growth- in particular India and Vietnam. Short term I have no idea.
I did cut my losses in the Mexico ETF I held, but continue with Blackrock Latin American Investment Trust (LON:BRLA) . The latter yield is good and no sign the dividend will be cut- hopefully. But I will be watching Brasil carefully as that is by far the largest country BRLA is invested in.
The Money Makers podcast was with Andrew McHattie this week. Interesting comments by them both on the performance and rationale for investing in Henderson Far East Income (LON:HFEL). I think Jonathan described it as "nugatory" and both were far from complimentary about the long term performance. The temptation of a large dividend at expense of capital growth over long term. I mention it as the Trust is often discussed on this board, and has done well over the last year. I don't hold, but can see the value for income seekers, although would you be better with a lower yielding trust and sell some periodically?
I thought the comments on 3i Infrastructure (LON:3IN) were very interesting, similar vein to above. I have been looking at some exposure to infrastructure as a lower risk move in current climate. I had been enticed by the higher yields at HICL Infrastructure (LON:HICL) or BBGI Global Infrastructure SA (LON:BBGI) but think will plump 3i Infrastructure (LON:3IN) which has excellent 10 year performance. 3 year performance is nothing to write home about but better than the overall sector. This just looks like something one can tuck away and come back to in a few years?
Here’s the link for that MoneyMakers podcast. Scroll down for that second section with Andrew McHattie:-
https://money-makers.co/2024/1...
A key thing about Henderson Far East Income (LON:HFEL) is that the bad performance is historic. What matters more now imo is the Management change and strategy change which is already showing signs of yielding much better performance. AND while those of us holding wait and see whether performance continues to improve we’ve got a 10.8% dividend….and with this comment on the dividend in their recent Results:-
“Dividend
I am pleased to report that we have once again maintained the Company's 17-year track record of increasing dividends. A total dividend of 24.60p has been paid in respect of the year ended 31 August 2024, representing a 1.7% increase over the prior year.
It is also particularly pleasing to confirm that our dividend has been fully covered by portfolio revenues during the financial year as we witnessed a strong resurgence of dividend growth in line with longer term trends. We will, as we always do in years of surplus, be adding a considerable amount to the revenue reserve which we seek to strengthen when we can. The revenue reserve can be used to smooth dividends through periods of revenue shortfall. This reserve now stands at £29.9m.”
Are these winning suggestions?
Augmentum Fintech (LON:AUGM) where the plus case has been posted here several times now …….with the share price taking no notice……..so far! The share price has inched up from the extraordinary (imo) October 22nd 95p low to 101p but the discount is still 39%. Limited downside risk surely? Upside could come suddenly on any new good news like a disposal well above what they paid.
Crystal Amber Fund (LON:CRS) is about the best performing Investment Trust over 1 year where it’s up 86%. A key reason for the impressive gain is because of their key holding De La Rue (LON:DLAR. I decided to play the DLAR upside by buying De La Rue (LON:DLAR) rather than Crystal Amber. Fortunately the chances of substantial further gains for De La Rue (LON:DLAR) and presumably Crystal Amber (if that 33% discount to NAV figure is reliable) are very high.
Briefly here’s why the upside looks good.
They’ve sold their Authentication business for £300 million. It’s not yet a done deal but looks almost certain to go ahead in the first half of next year. To save me explaining further, here’s the Crystal Amber Fund (LON:CRS) key comment on it with their recent Results:-
“Last year, I commented that in the course of a prolonged period of intense and ultimately successful activism, the Fund purchased an additional 15.3 million shares in De La Rue at a cost of £6.3 million. This resulted in the Fund increasing its holding in De La Rue to close to 17% of its issued share capital, up from less than 10%. Subsequently, De La Rue's share price rose by over 130% in the 12 months to 30 June 2024. I also noted that, at a time when the currency market cycle was improving, the Fund remained of the view that the strategic value of De La Rue was substantially more than its then market value, in an industry requiring consolidation.
This view was reinforced in May 2024 when De La Rue reported that the order book at its Currency Division had increased to £241, million up from £137 million at 31 March 2023. De La Rue also announced that it was in discussions with a number of parties who had made proposals in relation to or expressed interest in both its Currency and Authentication Divisions. This culminated last month with De La Rue reporting that it had entered into a definitive agreement for the sale of its Authentication Division to Crane NXT for a cash consideration representing an enterprise value of £300 million. For the year to March 2024, the division reported an adjusted operating profit of £14.6 million, meaning that the price represents a multiple of more than 20 times operating profits and 2.9 times revenue.
The Fund believes that after proceeds are received from the sale of the Authentication Division, all bank debt and pension liabilities can be settled, leaving De La Rue with net cash of around £140 million. Its remaining Currency Division has attracted interest from trade buyers and the Fund believes that De La Rue could sell this division for at least £150 million. Whilst the price achieved for Authentication significantly exceeded analysts' expectations, it matched the Fund's previous publicly stated target, given its strategic importance. The Fund believes that the price achieved will only serve to increase competitive tension for the disposal of the Currency Division.”
So DLAR will be left with net cash around £140 million.
Some see their remaining currency printing business as in decline. But is it? The demand for polymer notes is increasing and note this from the paste above:-
Their currency order book increased from £137 million to March 2023 to £241 million by May 2024.
Crystal Amber reckon they could sell the currency business for at least £150 million. Add that to the cash pile and it’s near to £300 million. De La Rue (LON:DLAR) market cap is around £200 million.
Or they could continue to run their currency business.
Or a bidder might find De La Rue (LON:DLAR) too good to miss.
Paul Scott analysed De La Rue (LON:DLAR) and the sale of their authentication business on the Small Company thread on the Oct 15th day of that news. He was surprised at the muted share price reaction to “only” 108p. It’s now only 102p but was up 4% on Friday.
So both Crystal Amber Fund (LON:CRS) and De La Rue (LON:DLAR) are well worth checking out. Crystal Wmber are winding down, and arguably that’s a negative if it all takes too long, but the risk is less than just buying De La Rue (LON:DLAR) because De La Rue (LON:DLAR) is not their only holding.
Here’s the link to Paul Scott’s analysis on the day De La Rue (LON:DLAR) announced the sale of their authentication business:-
https://www.stockopedia.com/co...
It’s also well worth seeing the full Results comment etc from Crystal Amber including news of another key holding MMI. Note that DLAR now accounts for around 25% on NAV. More here:-
https://www.theaic.co.uk/compa...
Ken- Hope your correct- I am beginning to get concerned about Augmentum Fintech (LON:AUGM) . Maybe the experience with Hydrogenone Capital Growth (LON:HGEN) is hanging over me.
Apologies Ken, I'd missed this before posting. Totally agree that Crystal Amber Fund (LON:CRS) is worth consideration, but I'm basing that on the Morphic Medical play on reset. Any De La Rue up side I'm seeing as a bonus
I hold Polar Capital Technology Trust (LON:PCT) . Article in the Times today which I shared earlier. Like the approach- they have AI exposure, but in quoted companies where they can easily exit. I find AI really interesting. My personal uses of it are very positive- upload an image , it will recognise they type- not sure about exact location unless well known. Ask for restaurants with taps, churns out a list. Exciting, like when I had my first Apple Mac in 1986 and when Google launched. In 1997 days you could launch a website and get to number one easily- no competition, Google wrecked it with paid ads, though my business does OK and no longer use any Ads - not sure about the Google ad model as we found the cost of acquisition was high- and as a b2b business little extra orders. I wonder if B2C will realise they can use it and then get a customer base and stop using ads? I digress, the managers seem pretty good and I would hold this instead of Scottish Mortgage Investment Trust (LON:SMT) .
Last comment - if you did not see The Times interview, this is a good summary of the managers view.
"
Hi Charles,
An interesting article - and extremely similar views and holdings to the Unit Trust Blue Whale.
1st table is Polar Capital Technology Trust (LON:PCT) 2nd is Blue Whale.
I have always liked Blue Whale, but they had a very poor 2022. But since then they have had great success. I also like that whilst AI is a major theme, they also have a few holdings that provide a slightly diversified PF.
Stepehn Yiu is regularly on various interviews & podcasts and talks a lot of sense. The costs are almost identical 0.84% vs 0.85%, but whilst you don't get the 9% discount that PCT provides, it appears to sit around this a lot. Link to a recent interview on CNBC.
https://bluewhale.co.uk/tv/?mt...
I would happily hold both/either.
Schroder European Real Estate Investment Trust (LON:SERE) which I bought after Ken's suggestion a whie back. Thanks Ken- performed well and with an 8.68% yield.
The investment thesis is:
"Investors who want to tap into the income and growth potential of a diversified portfolio of direct real estate in continental Europe through an investment structure that is ideally suited to such an illiquid asset class have one option: the Schroder European Real Estate Investment Trust.
It is the only generalist real estate investment trust (REIT) focussed on Europe, making it a compelling proposition for investors who want to diversify their property exposure beyond UK shores.
“The European REIT is a unique proposition,” says lead manager Jeff O’Dwyer. “Every other UK-listed REIT focuses on the UK or focuses on a specific country or sector within Europe, like Germany or logistics, whereas ours is diversified by country and asset, giving investors access to a cross section of offices, industrial, retail and some alternatives in key high-growth markets.”
The benefit of investing in European real estate is manifold. The continental European market is larger and more diverse than the UK market. Additionally, many rental leases in Europe are indexed to annual inflation, whereas typically in the UK rent reviews are restricted to every five years."
I am no great knowledge on the property sector in Europe, but the managers are doing OK. An area I would never invest directly in, but can see the rationale for exposure-and the yield is great.
I also hold Chelverton UK Dividend Trust (LON:SDV) for reasons already covered by Charles and Kevin. Agree there’s a case for waiting for Chelverton UK Dividend Trust (LON:SDV) to be a bit better value than it is now.
Thanks Charles for the Schroder European Real Estate Investment Trust (LON:SERE) mention. A key reason for holding (in case new readers of these threads missed the fuller reasons why posted a while ago) apart from the big dividend and big discount, is the possibility of a bid.
Tritax EuroBox (LON:EBOX) was in the same sector with the bid possibility (there was a bid) covered here ahead of it happening. There’s a chance that Schroder European Real Estate Investment Trust (LON:SERE) will go that way too, and anyway it’s very good value.
Another holding I have is Odyssean Investment Trust (LON:OIT) . As part of my portfolio review post Trump?the Budget looking at all my holdings and am selling some direct equity holdings and moving more funds into trusts. So sharing my thoughts , my justification in other words, to hold. This fund says the do this:
"We look to build a highly concentrated portfolio of no more than 25 companies where we carry out intensive diligence, only investing behind our highest conviction ideas. We focus our investments on smaller companies, typically too small for inclusion in the FTSE 250 index. We believe the best investment decisions are made from a base of knowledge and experience, and we will make the majority of investments in industry sectors which we know well (TMT, Services, Industrials and Healthcare)."
Again I like the portfolio, know some of them. I do hold Spire Healthcare (LON:SPI) directly, surely another bid will come for it.
NCC TMT 14.2
James Fisher Business Services 6.3
XP Power Industrials 12.4
Xaar Industrials 5.4
Elementis Industrials 9.7
Spire Healthcare 5.0
Genus Healthcare 8.6
Auction Technology TMT 4.9
Gooch & Housego Industrials 7.4
Essentra Business Services 4.7
Total 78.6%
Another trust I hold- bought a couple of months ago is Chelverton UK Dividend Trust (LON:SDV) . With a yield of 7.7% and given the portfolio should see capital growth. The largest holding is Alumasc (LON:ALU) 2.62%, which I also hold directly, and is performing well. A portfolio I do recognise many of the holdings , some of which I hold so may dispose of those. Duke Capital (LON:DUKE) is a holding 1.68% which has just had a fund raising. Severfield (LON:SFR) is an interesting holding as well.
Alumasc Capital Goods 2.62%
Smiths News Consumer Discretionary Distribution & Retail 2.59%
Chesnara Insurance 2.39%
ME Group International Consumer Services 2.37%
Bakkavor Group Food, Beverage & Tobacco 2.34%
RTC Group Commercial & Professional Services 2.32%
Ultimate Products Consumer Discretionary Distribution & Retail 2.32%
Hargreaves Services Energy 2.30%
MP Evans Food, Beverage & Tobacco 2.22%
Wickes Consumer Discretionary Distribution & Retail 2.13%
MTI Wireless Edge Technology Hardware & Equipment 1.97%
Stelrad Consumer Durables & Apparel 1.97%
Conduit Insurance 1.94%
Epwin Group Capital Goods 1.89%
Severfield Capital Goods 1.85%
STV Media & Entertainment 1.83%
ZigUp Transportation 1.80%
Duke Royalty Financial Services 1.80%
Polar Capital Financial Services 1.76%
Arbuthnot Banking Banks 1.68%
Total 42.07%
I will be holding this for the medium term.
Hi Charles,
Some great companies in Chelverton UK Dividend Trust (LON:SDV) and an impressive dividend.
BUT........on a quick scan (admittedly not a deep dive) it has quite a high charge (2.7%) and its performance doesn't seem to be that strong over the longer term. It also looks to be on a 3% premium.
It has had a great 1yr return, but 3 & 5 yrs don't seem to be that great - I appreciate small-caps haven't done well over this period.
My worry is that some of the excellent companies currently held have already had a strong few months (reflective in this years performance), and might now be getting a little pricey eg. Smiths News (LON:SNWS) & ME International (LON:MEGP, but hopefully they will be finding other undiscovered diamonds.
One for further research and maybe await a reduction in its premium.
Kevin- valid points. The yield with a interesting portfolio is what appealed to me. I am hoping UK mid/small caps will perform better over the ext couple of years- but who knows with the Gov taking some strange choices in taxation. Personally all for more taxation if we want the services as a country- but maybe choices are odd. Dangers of boxing yourself in a corner with manifesto promises.
Hi charles what you need to consider with this trust is the high gearing used which is up for re financing b4 April 25 we should know something b4 xmas I am also a long term holder and because of the gearing it can go through feast and famine periods
bryaz- gearing is high- partly what attracted me.
Interesting interview with the manager of Polar Capital Technology Trust (LON:PCT) in the Times today( I hold). Apologies for those who cannot view as it might be behind a paywall. Link. I will increase my holding at some point.
Isn't this niche expertise part of what makes mothership POLR such a great income with growth proposition, in contrast to LIO, which is more of a generic play on UK Plc..? Sorry for somewhat O/T, but my larger point is that by owning Polr you can accrue some of the benefits of the underlying stable.
I do hold Polar Capital Holdings (LON:POLR)
I have increased my holding in Aurora Investment Trust (LON:ARR) on its underperformance recently which I assume is due in part to its large holdings in Lloyds and Frasers. ARR adopts a high conviction approach-these holdings account for 75% of the portfolio.:
As at 31/10/24
Frasers Group-18.7%
Castelnau Group Ltd 17 %
Barratt Redrow 12.9%
Lloyds Banking Group 8.3%
Ryanair 7.2%
Bellway 4.3%
RHI Magnesita 4.1%
AO World 3.4%
So in October it was down -4.1% against the FTE down 1.6%.
Historically over 5 years they have outperformed the FTS-85.1% v 77.8%.
Dividend yield is 1.6%
As I said previously I was dithering about disposing- but since many of these companies I would hold direct- this sort of reduces the risk. The alternative view is of course it might increase it as they are pretty much all companies out of favour in the market.
They state this "
We strive to deliver great long term investment returns.
We do this by buying great businesses when they are cheap usually because they are having short term issues.
If our research is correct, then they recover and deliver high returns.
Our key skill is in the identifying, valuing and monitoring of suitable investments."
Scottish Oriental Smaller Companies Trust (LON:SST)(I hold) The annual report has a detailed 14 pages portfolio review. One of the best in the Trust sector, worth a read even if you do not hold. https://www.scottishoriental.c...
Can anyone help for the last few years I have been wanting to invest in a US IT (possibly JAM and /or JUSC) however I have delayed much to my cost thinking the market was overvalued !!
Does anyone know if it would be better to look at an ETF tracker , I am just looking for something that I can keep over the long term , I assume an ETF would be cheaper .
Hi Prof. I'm invested in iShares S&P 500 Info Technolg Sctr (IITU). This has a charge of 0.15%. JustETF is a great site for comparing ETF costs and performance and for doing your research.
Thanks Andy will check out JustETF
Prof- I am going through the same process- looking at JPmorgan US Smaller Companies Investment Trust (LON:JUSC) as my prime choice. As Andy How says Just ETF is great for finding ETF and there are a few tracking US Smaller companies. But you need to look at replication. Given the new President's volatility I am favouring an active fund.
Thanks Charles
Changes to Virtual Investment Trust Portfolio confirmation
Notes: Profits reported on sales include any dividends received during the holding.
Value change this month means from the start of the current month.
What are people's thoughts on owning a global investment trust such as Monks Investment Trust (LON:MNKS) or Bankers Investment Trust (LON:BNKR) compared with a global tracker such as the Vanguard FTSE Global All Cap Index Fund? I see so much overlap in the holdings that I'm wondering why pay the higher fees for the investment trusts. I can justify an investment trust when I can't find shares I want to buy in a sector such as healthcare, mining or space, but I'm struggling with the justification for owning trusts that are a legacy from when I had a stockbroker. Just wondered - what is the experience/opinion of you all out there?
Hi Indie,
If you look back up the page to around 5th Nov you'll see bsharman & I had an exchange of posts regards global IT/UT/ETF's. Might be some ideas there.
In yesterdays SCVR there was a good discussion on using some ETF's/trackers as a safer and cheaper bet vs individual shares & IT's - which in the long term tend to outperform and are a cheaper option, unless you are one of the few who is able to consistently beat the market.
Hi All,
After our discussion, and researching various options (If for the long term) I would go for the best performing global Funds/Investment Trusts/ETFs
The top performing global funds over 5 years are (would like to see over 10, 15, 20 years but this is not available on pickafund:
In terms of investment trusts I would go for the top performing : Jpmorgan Global Growth & Income (LON:JGGI) 15.72% annualised return over 5 years.
The Royal London seems like an exceptional outperformance - I wonder what they are doing differently to give them that alpha edge (and will this continue)?
As an aside North Atlantic Smaller Companies Investment Trust (LON:NAS) (I hold) are doing a InvestorMeetsCompany at 10:30am which will be interesting!
I will have a small amount of funds to invest in a SIPP soon and will probably split it two ways between Jpmorgan Global Growth & Income (LON:JGGI) and the L&G Global 100 Index Trust - similar to an ETF.
HI bsharman,
In April or May this year the whole group of fund management team on the Equity Select fund left RL - they planned on setting up their own fund house. At the time they passed the day-to-day responsibility to a number of other managers - who had no experience in global stocks.
At that point I exited with the intentions of keeping an eye on where the ex-RL team resurfaced. Ive heard nothing since.
However, the performance has continued under the new managers. I cannot recall their previous spread of investments in the PF, but I suspect the Mag-7 have helped over the last few months (and piotentialy before).
I don't know anything about No's 2&3 on your list - but will take a look.
I personally hold L&G Global100 & Jpmorgan Global Growth & Income (LON:JGGI) - both of which are significant holdings in my PF and I continue to top them up.
Good luck. K
Edison research note on Henderson Far East Income (LON:HFEL) is here
Sold another higher risk UK equity share to buy Taylor Maritime Investments (LON:TMI) . They say the fleet is being modernised, more energy efficient, and the research I have done suggests rates should increase slightly over the next 2 years. Yields 8%
I am feeling uneasy about markets- Trump and Musk is a toxic thought- but like Johnson and Cummings- and the fall out when/if they fall out could be mega so have sold a couple of my poorer direct equity investments and bought Polar Capital Global Healthcare Trust (LON:PCGH) . Chose that as it holds 100% listed stocks and hopefully Healthcare is a relatively safe area from Trumps tarriffs etc. I have enough exposure to unquoted investments(not in the Bio/Healthcare area) throughOakley Capital Investments (LON:OCI) ,Augmentum Fintech (LON:AUGM) the disastrous Hydrogenone Capital Growth (LON:HGEN) hence chosen a fund with listed stocks.
HGEN I am holding onto- though having had an email from the managers saying they were not aware of the issue at HH2E 2 days before the write off does not fill me with confidence. I am hoping against sense that NAV might be realised- the company is pretty small now. The risk is another big write down , or a failure to realise investments at a profit and they run out of cash and have to sell at a loss. Butas I am down 66% going to take a punt.
Interesting - I also think Trump and Musk will fall out at some stage and quite possibly in the first year. I'm much better at spotting these likelihoods than forecasting the results of what said fall out might be ....except that Tesla might be an excellent short if/when it happens and SpaceX orbits might be impacted.
India Capital Growth Fund (LON:IGC) I see in the latest report for October the underperformance of the BSEMidCao TR index has stopped- over the last 6 months NAV is up 6.2% the index only 5.4%But the 3 year and 5 year performance are still below the index. Concerning that Foreign Investors removed $11bn last month- highest level in 12 years. I am a holder and will remain.
Edison have produced a healthcare report- link here- you will need to sign up to read it.
Featured trusts are.
BB Biotech AG (SWX:BION)
Biopharma Credit (LON:BPCR)
Bellevue Healthcare Trust (LON:BBH)
Biotech Growth Trust (LON:BIOG)
HBM Healthcare Investments AG (SWX:HBMN)
International Biotechnology Trust (LON:IBT)
IP (LON:IPO)
Polar Capital Global Healthcare Trust (LON:PCGH)
RTW Biotech Opportunities (LON:RTW)
Syncona (LON:SYNC)
Worldwide Healthcare Trust (LON:WWH)
Xlife Sciences AG (SWX:XLS)
Thanks for the link to this Charles. Interesting article.
Healthcare stocks hammered today following pick of RFK Jnr as Sec of Health in the US. Such a difficult time at the moment to know what areas to back. I had considered healthcare to be more defensive, but wtfdik!
Timing has never been easy in these markets. But I do think- lioke you- a sector that should be oK. Not sure that if RFK will be confirmed- and if he is what real damage he could do. But who knows.
Just to say that I got a very good and long detailed reply from Richard Stone the C/E of AIC about the Brokers not allowing trades in some Investment Trusts.
The AIC has been on to this for years including an article headed “Burn Before Reading “ long again 2018, about those useless KID documents (that I never read) . Failure to update or supply these documents is sometimes why Brokers are banning investors from buying those Trusts.
The AIC have also been working with Platforms as well as with the FCA and the Treasury including on European regulations that need no longer apply.
This is all very well imo but surely “sorting it” via these methods shouldn’t be taking multiple years? I made that point in my reply. He also said that all the Trusts know about these issues. Yes. But what are they doing about it??
I also reminded him that Interactive Investor now put a warning notice for EVERY Investment Trust. I.e even THE top quality mainstream Trusts. I pasted their warning to him.
When replying I gently suggested that it might be a good idea to tackle Interactive Investor directly on this. It woukd be much quicker and more effective than further referral to and consultations with the likes of the Treasury and the FCA.
I'll tell you what AIC can do - they can approach all the big boys, H&L II, Lloyds/Halifax etc and suggest that they have the chance to become AIC's preferred partner and benefit from the AIC "marketing support" if they want to help champion Investment Trusts. Encouraging holders to vote at meetings (ie have tech in place to do so) , some sort of proper but simplified process where investors can say they are aware of what ITs are and good/bad points.
In the insurance world something like that is called a scheme and is very powerful in the commercial insurance side of things.
Looks like Hydrogenone Capital Growth (LON:HGEN) has a 8% holding going into admin in Germany. I am going to reconsider whether to hold this poor investment.
I suspect Foresight Environmental Infrastructure (LON:FGEN) has the same exposure Charles, as RNS today announces a write off for them as well.
Tim - I have emailed HGEN as follows.Suggest other suffering holders do the same.
"As a shareholder I am slightly concerned a few days you announced an NAV- and then today wrote off 8% of the assets?
I. would suggest. the NAV announced recently was extremely misleading- or if not even more worrying that you did not know of the issues.
I suggest now is time to wind this poorly performing trust up and get something back for shareholders who who have seen value eroded."
The email. address is enquiries@hydrogenonecapital.com
Luckily I don’t hold Hydrogenone Capital Growth (LON:HGEN) but hold 3 other renewables type Trusts, but without much conviction. So many seem early stage and with portfolios where I find it impossible to know whether they are good quality or not. I.e isn’t there a lot of guesswork along with hoping the Managers know what they are doing with these Trusts, and so always the risk of bombshell news like that which hit Hydrogenone Capital Growth (LON:HGEN) investors today?
The managers of HGEN have annoyed me. I invested because I believe in the industry-Green Hydrogen. Something I have researched, have a small investment in a green hydrogen car company, Riversimple. I have listened to the managers numerous times and trusted them. Lesson learnt, little point selling now , will just have to hope for a NAV realisation.
Good luck with Hydrogenone Capital Growth (LON:HGEN) Charles. 80% down from the 120p peak is very big for an Investment Trust so probable that a floor has been reached?
I like green hydrogen too but ……with Trusts like Hydrogenone Capital Growth (LON:HGEN) isn’t it all so early stage? . I hold Bluefield Solar Income Fund (LON:BSIF) and Foresight Solar Fund (LON:FSFL) but am questioning why. e.g Wind. Weeks of no wind when anticyclones get stuck as is the case now. I much prefer transparent mainstream Trusts updating NAV every day, and Commercial Property, which I find much easier to assess.
Potential (or existing) investors in Hydrogen should be aware of the difficulties involved in practical usage of Hydrogen, some of which are discussed in this very informative video, based on validated scientific research:
https://youtu.be/cyhw4LWlJmc?s...
Note in case anyone didn’t read my latest post today on Brokers still banning their clients from buying some Investment Trusts, that also in that post was the near 100% certainty of a 12% or so capital gain between now and the end of this month.Opportunities like this are one of the many plus points for Investment Trusts.
Now to the encouraging Results from big dividend paying Henderson Far East Income (LON:HFEL) today:-
Henderson Far East Income (LON:HFEL) . 227p Dividend yield 11%.
Clear signs in their Results today of improving performance. It’s well worth scrolling through all the comment to see it all. . It’s especially good that the dividend is now covered and that the income Henderson Far East Income (LON:HFEL) are now receiving is above their already optimistic expectations.
Also reassuring is the now increased focus on further improving capital gains for shareholders too. An 11% yield and near certainty now of continuation of their 17 year record of annual dividend increases is a good annualised return on its own. So evidence today that the strategy and Manager changes are working. I hold.
Here’s just one of the several sections on the dividend and the link for the Results today:-
https://www.stockopedia.com/sh...
Dividend
I am pleased to report that we have once again maintained the Company's 17-year track record of increasing dividends. A total dividend of 24.60p has been paid in respect of the year ended 31 August 2024, representing a 1.7% increase over the prior year.
It is also particularly pleasing to confirm that our dividend has been fully covered by portfolio revenues during the financial year as we witnessed a strong resurgence of dividend growth in line with longer term trends. We will, as we always do in years of surplus, be adding a considerable amount to the revenue reserve which we seek to strengthen when we can. The revenue reserve can be used to smooth dividends through periods of revenue shortfall. This reserve now stands at £29.9m.
Am I the only one bothered about Brokers banning their clients from buying some Investment Trusts?
The AIC Company Secretary didn’t even bother to acknowledge the email I sent for the attention of Richard Stone their Chief Executive, and posted here….without any follow up comment on it when I posted it on this thread.
So I sent a short curt reminder to her yesterday evening about not even acknowledging my email and this time her reply was prompt and apologetic with follow up promised.
Opportunities like the current sure fire winner one for GCP Asset Backed Income Fund (LON:GABI) are being missed thanks to this. e.g GABI have a compulsory tender offer for 18..95% of a holding at 89.3p, compared with around 80p to buy now. Deadline date to qualify is next Wednesday and pay day is November 29th. So well over 10% profit in just 3 weeks!
AND there’s a 1.5p dividend too, with ex divi next Thursday and pay day also on November 29th. That dividend is being paid on the full current holding and not after 18.9% has been compulsorily purchased by GCP Asset Backed Income Fund (LON:GABI) .
Hargreaves clients wanting to take advantage of this offer are greeted with this:-
“GCP Asset Backed Income Fund Limited (GABI) ORD NPV (View Factsheet)
Sell: 78.20p | Buy: 80.80p |
No change FTSE All Share: 0.04%
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Hi Ken. Agree with you but have just bought @GABI in my IG account because of the same issue with Hargreaves (where I already hold). It's also available to buy in my Degiro account. We shouldn't have to do workarounds like this but is does feel like the path of lesser resistance!
Hi Ken, great posts, Just to check in that 10% profit in 3 weeks is accurate but only against c18.95% of the holding... amazing opportunity but that still leaves an 81% holding in a share that has almost doubled in the last 12months. I know most like that momentum ride but I always see that as a potential risk -especially if the share loses appeal ex-div. I agree that it is a great opportunity but taking your mantra of buy low sell high NextEnergy Solar Fund (LON:NESF) on lows with dividend confirmed today offers a great opportunity. And whilst I'm not as bullish as yourself on Vietnam I have to admit that if VinaCapital Vietnam Opportunity Fund (LON:VOF) has a down day from its current price I'll be adding.
Just reflecting ......with the sustained div history of GCP Asset Backed Income Fund (LON:GABI) the most probable outcome is that you retain 81% with a locked in 11% Yield and hold for a bounce - it's very hard to look past that......
Think anyone looking at this should consider that the price of the remaining holding may fall pro rata at the same time you reap the gain on the portion that is redeemed. I’ve watched enough of these redemptions to know that is what is likely to happen, it’s very similar to what logically happens when a share goes ex dividend.
That said the price may recover back up but other things to bear in mind I think include
1) as the trust gets smaller its ratio of loan income to operating cost will deteriorate so historical dividend yields may be anything but locked in
2) the quality/duration of the portfolio deteriorates if the easiest/best stuff is liquidated by the trust first. If the trust is just left with assets that will take a longer time on average to liquidate, the share price will merit a discount to reflect that uncertainty.
I’ve held GCP Asset Backed Income Fund (LON:GABI) in the past and have liked it. But when anyone posts anything implying there are easy wins, my starting position is to be massively sceptical.
Lastly be warned of a practical thing around the change in ISIN for the unredeemed shares. This will force the company and platforms to process new Key Information Documents etc. so whilst you might be able to sell what you hold easy enough, buying more may not be possible immediately. It shouldn’t be that way, but it most certainly was on the first redemption on some platforms
Agree with most of that M48. After the previous compulsory redemption the share fell 8p on the ex entitlement date in June to 70p……BUT it made up that loss quickly and was back to 76p within a month and 80p after 2 months. So anyone wanting to sell then at a profit could soon do so.
There’s no certainty about this, but a good chance much the same could happen this time? After the previous compulsory redemption ex date drop I bought more around 70p to get my stake back to the pre redemption level and to benefit from that increased holding with the next compulsory redemption (the current one) which was again around 90p.
Will I do the same this time? Probably not. As you point out it’s the easiest to liquidate holdings that go first so future redemptions might be at a bit lower price and there also tend to be bigger gaps between redemptions.
So I’ll hold the rest of my holding, and collect the big quarterly dividends (8% yield at 80p) which they intend paying for a while yet. So even if there’s no recovery in the share price this time I and others holding still benefit from the imminent 12% return, and future dividends should make up for the share price drop…..which might again be temporary.And that would be another chance to sell and lock in the profit,
That H/L are banning buys and the nonsensical KID issues might see other Brokers start to ban buying could negatively affect the share price this time. . But a too low share price around 70p and another Compulsory redemption in the mid 80s or higher gives the chance to get another profitable outcome for investors deciding to hold until more news.
As I see it (perhaps too carried away by originally buying GCP Asset Backed Income Fund (LON:GABI) at just 65p last December) is both downside and upside are modest for any buying now to be in time for the next compulsory redemption. For those of us who bought much earlier when, from memory GCP Asset Backed Income Fund (LON:GABI) was covered in posts here, it has already worked very well, and especially so when adding on the 9% dividends.
Re the GCP Asset Backed Income Fund (LON:GABI) forthcoming compulsory redemption + dividend.
Thanks Rob. Yes . That 12% profit if including the dividend is within the next 3 weeks, and it is for 18.95% of our holdings.
Also investors can if we want to , maintain the same size stake as we hold now, and buy 19% or so at the current 80p price. Or if wanting to wait until after this all completes at the end of this month, wait and see where the share price settles once the cash and dividend are in our accounts. If anyone else is with Hargreaves, unless it has changed very recently, you will be banned from buying more GCP Asset Backed Income Fund (LON:GABI) .
If considering buying more to maintain current stake size we also need to check (I haven’t yet) the quality of their remaining assets and how long before the next liklely compulsory redemption.
My Barclayshare ISA account presented no problems on a purchase of GCP Asset Backed Income Fund (LON:GABI) although there is an annoying little competency quiz for each investment trust purchase generally. Bizarre when I consider how risky some of my other purchases have proved!
Renewables infrastructure funds are on the slide again, which has been painful these last few weeks, as I hold several of these. Any additional insights over the thoughts below as to the root cause?
SDCL Energy Efficiency Income Trust (LON:SEIT) Gore Street Energy Storage Fund (LON:GSF) - these have exposure to US inflation reduction act, so could be victims of a Trump trade if he wins and rips it up.
GCP Infrastructure Investments (LON:GCP) went ex-divi last week, but has continued a dramatic slide this week (10% down). Foresight Environmental Infrastructure (LON:FGEN) Renewables Infrastructure (LON:TRIG) Downing Renewables & Infrastructure Trust (LON:DORE) also on the drop. These are UK/EU focused, but I think are suffering from being bond proxies, as long duration gilt yields are rising - which itself is likely a Trump trade, as well as the UK budget inflationary effects.
As a positive note some of these are looking like being real bargains if/when they bottom out. Tomorrow might be another painful day though..
I also feel your pain! I hold Renewables Infrastructure (LON:TRIG) , Gore Street Energy Storage Fund (LON:GSF, Bluefield Solar Income Fund (LON:BSIF) and a family member has Greencoat UK Wind (LON:UKW). In addition two Clean energy ETFs (based on different clean energy indices) iShares Global Clean Energy UCITS ETF USD (Dist) (LON:INRG) and L&G Clean Energy UCITS ETF USD Acc (LON:RENG) to add international exposure. Without exception they are all performing poorly this year. The negative factors you cite are much of the cause but I cannot see how the country will reach the targeted 100% of electricity generation from renewables by 2030. NESO in its just published report outlined what was needed to hit this target and these type of companies must be part of the solution. Despite this institutional investors and retail investors are just not interested - hence the big discounts that many of the Investment Trusts currently trade at. I guess a no risk (inflation & excessive govt borrowing aside! ) 4.5% from 10 year gilts is too attractive an alternative.
Things just got worse with the Trump victory. Any clean energy investment with significant US exposure hit badly. iShares Global Clean Energy UCITS ETF USD (Dist) (LON:INRG) down over 6% and L&G Clean Energy UCITS ETF USD Acc (LON:RENG) over 3.0%. Even Gore Street Energy Storage Fund (LON:GSF) down quite a bit too. Clearly Trump and his supporters don't believe in climate change and this is reflected in investors reaction - perhaps he may change his tune if his place in Florida gets destroyed by a major Hurricane!
I see that CWR is well down this morning, possibly as a hydrogen bellwether, thought HGEN is unchanged, possibly because already so oversold to NAV. SEIT and NESF, which I do hold, pretty stable. My hope is that "Drill baby drill" will be in context of oil prices beyond Trump's control , which may or may not make it worth going after. And in the meantime, states like California will simply move ahead with or without the IRA, which has been very good for US technology. Is he really going to jeopardise that? Who knows. In the meantime, climate change will do what it does, irrespective of Trumpian denialism, and either we burn or we get a grip. I hope we haven't just lost four years. But bear in mind also the importance of India and China - both in the eye of the coming climate storm.
"states like California will simply move ahead with or without the IRA"
Yes, last time round the individual states pursued their own agenda (ie electrification, EV adoption, solar build out etc) regardless of the Trump messaging from the centre. Hopefully that repeats this time.
SEIT etc looking pleasantly stable today (GSF not so much)...
Thank you, Ken, for setting up this thread, which I feel is a valuable antidote to small cap shares. I feel a number here are similar to me, roughly half ITs and specialist collectives, half individual companies. I see some of you have difficulty in trading them. I would just suggest you try Charles Stanley Execution Only services. I AM biased (been with them 25 years), but NOT on commission; but I can trade any of these obscure ITs, without difficulty, it seems. You can instruct by email, but also talk to the dealers directly and get trades worked to minimise the spread.
Supermarket Income REIT (LON:SUPR)
They've just announced a reduction in their management costs as fees will now be based on mkt cap as oppose to asset values, which will probably save them £1m + pa in fees. All well and good but my thesis is does this now encourage them to deploy capital to buy backs as oppose to further acquisitions? After all, the former is likely to be more nav enhancing than the latter in the short and medium term ie. why buy more supermarkets at full market price when you can buy your own at a 20% discount?
Edit - Also bought some JPMorgan Global Core Real Assets (LON:JARA) today, a 6% yield while you wait to receive proceeds from the wind up. Assuming it takes no longer than 18-24 months that should equate to a 30%+ total return over that period. And given it is a JP Morgan, i'm going to stick my neck out and trust their valuations!
That's an interesting move from Supermarket Income REIT (LON:SUPR) ,and agree, will likely encourage a focus on closing the discount (rather than growing the NAV).
However I think it is a better fee scheme than Digital 9 Infrastructure (LON:DGI9) , where the management costs were based on NAV (that the manager 'estimated' themselves, i.e. a gravy train at investor expense).
Enjoying and reading all the comments on the Investment Trust thread.
I have a question about ETFs, for which I don't have much experience or understanding.
I am moving a small consolidated pension to a SIPP and will be able to self invest.
I would like to buy two global ETFs - a global ETF and a global quality dividend WisdomTree UK Quality Div Growth UCITS ETF GBP (LON:UGRW) maybe. I'm a confused with the number of different ETFs available and in different forms and currencies. Should I go for GBP only? I have had a look at Just ETF but am even more confused! I suppose they have income or accumulation units. Any tips? Recommendations for top performing global ETFS I could look at? These would be buy and hold forever investments.
A large proportion of my ISA is in Investment Trusts - If I were to buy one IT for my SIPP it would be Jpmorgan Global Growth & Income (LON:JGGI)
Hi bsharman,
My top Global ETF's & funds are as follows - there are plenty of others. I'd also point you to Ian Shadracks Youtube site - he had some reasonable looks at global funds/ETF's although I haven't looked at any of these recently;
WisdomTree Global Qual Div Gro UCITS ETF USD Acc (LON:GGRG) there are both accumulation & dividend options available here - the Just ETF site also allows you to do some comparisons across multiple Global ETF's and is an excellent source of info.
Jpmorgan Global Growth & Income (LON:JGGI) a firm favourite of mine and a sizeable holding.
I also hold a couple of unit-trusts in this area as well - L&G Global 100, whilst a UT is more like a very cheap ETF (low charges). Excellent performance, but depends if you have a view that the big companies of the world will continue to perform - largely US (78%).
I also like Blue Whale Growth & also until recently Royal London Equity Select - I sold out when the investment team left, but it has continued to do well.
Another option with little US exposure in the Unit-trust world is Ranmore Global Equity - only 24% in the US. A consistent performer - there have been some recent podcasts with the fund manager and I like his style - he is not a long-term holder and looks for value opportunities and sells out relatively quickly after recovering and is not afraid of cutting his losses if he gets things wrong.
I do hold WisdomTree UK Quality Div Growth UCITS ETF GBP (LON:UGRW) for UK exposure, but it remains extremely small. It is 100% UK - not global.
Hope this helps.
Kevin
Thanks Kevin, that reply is most useful. I like Ian Shadracks YouTube channel. I use The AIC for comparing and researching Investment Trusts but cannot for the life of me remember the website I used to use for comparing both Unit Trusts and Investment Trusts - I have googled but can't find it. Can anyone share a link. Thanks
Was it Trustnet https://www.trustnet.com/ that you used, funds and IT's can be compared separately, but not directly against each other.
It wasn't, but thanks - it was something like Fund Picker?
Ah yes, now I know the one you mean: https://pickafund.com/
brilliant - thanks!! That is the one!
Many thanks for your post SSB it must have taken some time .....really appreciate it always look forward to your thoughts .
As I have a rare Sunday afternoon free I thought I'd at least contribute something, by going through my IT holdings and the rationale (or not) behind them:
I prefer to use ITs to invest in areas I can't reach myself or don't understand. It's generally a successful policy, and probably one I should use more. But those UK small caps are just so tempting ...
Thanks to Charles and ken for the efforts they put in here, it's much appreciated.
timarr
It’s good to learn that the Investment Trust threads are getting far more readers than I had thought and also that suddenly quality posts are getting far more up ticks. Those give some indication of number of likely readers too,.
I’ve no idea how timarr got the “number of read” figures. Is it easy to find them?
I enjoyed going through timarr’s Investment Trust holdings and it’s reassuring that I hold a lot he does. Also agree about using InvestmentTrusts for areas we don’t understand and also to invest all round the World (as reflected in the Virtual Portfolio holdings too). For UK I mostly prefer to go for my own share picks ahead of Investment Trusts.
One interesting and very tempting Trust timarr holds but I don’t is Lindsell Train Investment Trust (LON:LTI. This Trust used to trade at a huge premium and from memory that premium peaked at a bonkers 100%. Nick Train warned investors in a series of updates that Lindsell Train Investment Trust (LON:LTI) was way overvalued. Yet for a while still the share price rose even further! But now it’s on a big discount to NAV and dividend yield of 7% after the almost inevitable share price crash. Note that the Trust holds a big stake in their parent Company Lindsell Train. That holding was a key reason why investors piled in. Wouldn’t a share split help encourage more investors to buy Lindsell Train Investment Trust (LON:LTI)? A £750 share price is very off putting for small investors.
Here are the TOP10 Lindsell holdings:-
Top holdings
Data as at : 31/08/2024
All the postings stats are at the top Ken. 28 likes, 20 comments and 899 reads per below
I’ve no idea how timarr got the “number of read” figures. Is it easy to find them?
Hi ken - top of the page, on the right, next to "21 comments is "914 reads".
timarr
RE: Lindsell Train Investment Trust (LON:LTI)
Well worth reading Maynard Payton's analysis from earlier in the year:
https://knowledge.sharescope.c...
timarr
After reflecting on the time it must have taken for ShoeShineBoy to do his latest detailed post, along with the time a few more of us spend on posts here as well, I’ve been trying to gauge roughly how many are reading them.
I.e is the time spent worth it?
The monthly threads themselves so efficiently run by Charles are getting up ticks in the mid 40s over the full month. That’s down from mid 70s earlier this year (compared with over 100 a day for the small cap thread!) A lot of people don’t recommend posts so viewing figures here are presumably a good bit higher than 45 max? But that drop from mid 70s to mid 40s is means fewer posters reading the Investment Trust threads.
Up Ticks for all individual Investment Trust posts here are very low now, and replies are getting fewer. Is this a reflection of a wider problem beyond this site? I.e interest in Investment Trusts amongst ordinary investors is falling quite fast along with investment in them, and might that be a key reason why discounts are getting even wider?
A lot of Trusts and commentators and posters on them are seeing buybacks as the solution to too wide discounts. But some Trusts are getting bemused that the modest increase in NAV buybacks bring, are seeing those discounts widen even more! e.g this has happened to Augmentum Fintech (LON:AUGM). So far from being the solution those buybacks have been a waste of money.
Another BIG problem I posted about a couple of days ago is Brokers both not allowing investors to buy Investment Trusts or if allowing them adding a warning form with them. No such warning is given about junk shares about to go bust! No wonder investors are getting put off. And sometimes the Trusts themselves don’t seem bothered either. I posted about a specific example with Augmentum Fintech (LON:AUGM) on Thursday. Rather than waste £millions on buybacks why not tackle a key reason why some are not buying their Trust?
Few seem to care. That nobody here seems bothered is neither here nor there. But the fact that nothing is being done about it by the Trusts themselves or the likes of AIC getting involved, is letting this get worryingly out of hand.
After reflecting on the time it must have taken for ShoeShineBoy to do his latest detailed post, along with the time a few more of us spend on posts here as well, I’ve been trying to gauge roughly how many are reading them.
Hi ken
You can get some idea by the number of reads (rounded up and down):
Those include many reads by the same people, but that's comparable to the SCVR on an average day. So, I would say they're getting heavily read, by Stockopedia standards.
Keep it up!
timarr
Hi Ken
I read the IT post every time a comment is added - usually daily. I also provide a few comments, so it is def valuable in my eyes. This & the SCVR are may absolute daily go-to's.
Like you, I am worried by the lack of interest/movement/momentum in IT's and worry about their longer-term future - hopefully just a passing issue that will resolve itself if we can get a bit of interest back into the markets. I would hope the end of the budget issues and the US election might drive something as we head towards the annual santa rally.
I did post last week in the end of the Oct update, a list of trusts (and unit trusts & ETF's) that were going to be part of my rebased PF from my cash withdrawal from my SIPP as I moved into drawdown. However, I managed to cancel the drawdown after the budget (it hadn't been enacted as HL were running 15+ days behind) so am not looking to create that PF, although a number of them are still of interest across my wider PF and also sit already in my other PF's.
With a load of the cash I did buy today a large chunk of TG25 (Gilt) as I am uncertain on the markets for the next few months and a nice 4.5%ish return (that's its GRY and I know its only 8mths to maturity). If the US election brings some stability I will go back into UBS Factor MSCI USA Qlty ESG UCITS ETF USD Adis (LON:UC99) which is a very good ETF with excellent long-term returns. One of my favourite ways of investing in the US markets.
I am away currently, but once I get back I will do a full review of my collective investments similar to timarr below - its always good to hear what others have to say about their holdings.
Best wishes
Kevin
Hi Ken - Just to say how much I value the IT thread - it’s always a daily read for me. I’m still learning (despite my handle) so don’t post much but wanted you, SSB & Charles to know how much I value this thread.
My biggest holding is the ETF VanEck Defense UCITS ETF USD A (LON:DFNG) DFNG, bought initially about 12 months ago due to concerns about instability on a macro level - about 12% of my PF & wondering whether to take to 20%.. second is JGGI, a fab track record, but I worry about over exposure to tech & US…
Please keep on posting..
TJ
I’ve started to read this bulletin with interest after discovering it by accident in an SCVR discussion. I’m probably being obtuse but each time I want to look at it I have to search the Stocko discussion area from scratch. Is there a form of site bookmarking I’m not aware of? Thanks!!
Lime Circle.
I don’t know whether it’s is the best way to access the Investment Trust threads, but I click the “discuss” heading and then on the page that comes up “all posts” which is the top heading. That brings up all the threads here, with those seeing the most recent post at the top.
It’s worth scrolling through the large number of threads that then come up, as there are a lot of very good ones.
Thank you Ken. There’s quite a lot more material than I had realised
FWIW I like these posts and is great added value to the Spedia offering - so please keep going. Maybe the staff would like to chip in now and again !!!
It would be easy to look for discussions on other sites....but the trouble with other sites as we know is much more volume (noise) much less quality. + Markets have enough noise as it is....quality is hard to find !
From little seeds....
+ One other point re buying Investment (or unit) Trusts - this is often possible via the fund managers themselves EG JPM CT (for F&C) etc, minor advantages may be less dealing charges and easy to vote on corporate actions and the like, plus these all count as different institutions re the FSCS limits. Obvious disadvantage of this approach is managing the thing is a lot of paperwork when it comes to tax matters or portfolio management (speaking of experience re inherited portfolio).
ON BROKERS & INV TRUSTS
+ re the future I reckon the main culprit is the FCA consumer duty - despite recent concessions from FCA itself on fee disclosure. Consumer Duty..... is still very new and compliance people do not want to put their heads above the parapet. That is not what the FCA intended (according to their blah blah) . I (tried to) condense this into something short....give it a couple of years, FCA will gradually explain how they want firms to implement it (rather than making them guess) .... firms will see how the enforcement is working......and will then be able to make safer / proper decisions re Inv Trusts (the decisions could now be viewed as kind of safe bet as opposed to being really safe). Bear in mind the IFA industry has been decimated over 30+ years (partly as a result of its own bad decision making) and Professional Indemnity cover for IFA's is "expensive" and there is background to the current situation.
FCA Consumer Duty requires "buy in" at board level so that makes it difficult for any current Directors to publicly criticize it !
It’s infuriating that some online Brokers are STILL banning some Investment Trust buys. I tried to add to my GCP Asset Backed Income Fund (LON:GABI) (to add more ahead of the tender offer) but Hargreaves are banning all buys and only allowing sells. Fortunately Interactive Investor foes allow buys. At least one Broker is banning Twentyfour Select Monthly Income Fund (LON:SMIF) buys. The reason sometimes seems to be out of date KID documents or KID document. I never look at them.
A while ago ii prevented me adding to Augmentum Fintech (LON:AUGM). I notified Augmentum Fintech (LON:AUGM) and below is the reply I got. A claim that they had no means of contacting ii and advising me to sort it! The “we can’t contact ii” was nonsense as Interactive Investor contact details and phone number are on their website. I replied to the letter which I’ve pasted below this, giving them the Interactive Investor contact details……..and didn’t get a reply. I.e they didn’t want to know.
No wonder Augmentum Fintech (LON:AUGM) and other Trusts are on such big discounts. Hardly surprising if sells are allowed but buys are not! Do the Trusts affected care about this? Is the AIC concerned about it? They should be and the likes of AIC should get involved in getting it sorted asap.
Here’s the reply I got from Augmentum Fintech (LON:AUGM) with the nonsensical claim that there was no means by which they coukd contact them:-
“ Hi Ken,
Thank you for reaching out to let us know – I’ve just checked with the relevant people in our team, and I’ve been told there is no avenue for them to contact ii to find out what documents they are missing. The only way to try to cure it is for you to use the “message us” option on the ii website to query why you can’t trade and try to get specific information that our team can then address. We can’t do it ourselves because the “message us” facility is only available to ii account holders.
I hope this helps, thanks again for reaching out.
Kind regards,
Martha
image001.png
Martha Horrox
Marketing Associate
T +44 (0)20 3961 5420
W augmentum.vc
E marthaAugmentum Fintech (LON:AUGM).vc
LI Augmentum Fintech plc
For historical reasons I use HSBC and LLoyds and not because they are both cheap in terms of management charges which they are. Similar problem with IT's. HSBC allows Twentyfour Select Monthly Income Fund (LON:SMIF) and TwentyFour Income Fund (LON:TFIF) and strangley CVC Income & Growth (LON:CVCE) which is the eur version of £CVCG but not CVC Income & Growth (LON:CVCG) the sterling version of the same fund. LLoyds however allows CVC Income & Growth (LON:CVCG) but not Twentyfour Select Monthly Income Fund (LON:SMIF) or £TFIF. Neither permit £EJFI. Despite repeated requests to both nothing changes! All are income shares paying in excess of 7%
Thanks for that information Chelsea. It prompted me to take the initiative and try to get this nonsense sorted by getting the AIC Company Secretary’s email address and then to alert them to what is going on. As explained in my email it’s now reached the stage where Interactive Investor is putting a warning notice with EVERY Investment Trust.
If anyone else wants to email her, her address is debra.henderson-burton@theaic.co.uk
Here’s the text of my email:-
“Good Morning Debra
I’m emailing about the very concerning situation with several Brokers (including Hargreaves and Interactive Investor) STILL banning their clients from buying a now widening range of Investment Trusts. At least one Brokers (Interactive Investor) is now putting a big WARNING NOTICE for every Investment Trust (yes even stalwarts founded in the 1800s like City of London) when a client tries to buy it.
That warning notice includes asking the client if they’ve been provided with a KID document. Next question …if YES then have you had sufficient time to read and understand the documents? There’s more after that and then links to the KID and COST DISCLOSURE documents.
No wonder discounts are widening, buybacks failing to reduce discounts to NAV etc when clients can sell existing stakes held but can’t buy new stakes or top up existing holdings, and are given warnings before being allowed to buy any Investment Trust including mainstream Trusts. Anyone tempted to make a first ever Investment Trust buy will conclude that even the safest and highest quality Trusts are very risky.
Meanwhile these Brokers allow trades in junk shares including shares likely to go bust without question. Warnings about high quality Trusts but not very low quality shares. How can that be right? Unless the AIC and others in a position to do so get to grips with this nonsense this could kill the Investment Trust sector, at least for private investors. Is that what brokers want so that their clients focus instead on Open Ended Funds?
I contacted AIC about this months ago and it resulted in a very good follow up article from Citywire. But otherwise there has been no follow up to stop this. And since then the situation has got far worse with a range of income, infrastructure and other Trusts now seeing all buys banned. And it’s inconsistent. e.g Hargreaves Landsdowne banned me from buying more GCP Infrastrucure, but Interactive Investor allowed buys in that one. Twenty Four Monthly Income and Twenty Four Income are both seeing a range of Brokers ban all buying.
So the situation is getting far worse than when I initially pointed out this farcical and so worrying situation. Are the Trusts affected even aware that people are unable to buy their Trusts because of blanket bans? They should be, but the only one I contacted when affected, AUGMENTUM, fobbed me off claiming they had no means of contacting Interactive Investor and advising me to get it sorted! Yet interactive publish contact details including a phone number on their website. Hopefully other Trusts on big discounts like the 40% Augmentum discount will be more concerned than they were. There’s no point then spending £billions on buybacks when a part cause of the discount problem is this banning of all new buys in their Trusts.
I hope any reply I get is reassuring. It needs to be for reasons explained in this email.
Kind Regards
Ken Mitchell
Thanks for the response Ken. My understanding was that with the Treasury implementing the new measures regarding cost disclosures for IT's they would no longer be required to disclose the costs in the KID documents making the KID's somewhat redundant. It seems however the brokers are taking fright and over compensating to protect themselves against 'misselling' . I did write to EJF Investments (LON:EJFI) company secretary but received no response. The AIC should be the engine to remedy this; as you say its crazy if individual IT's are buying their shares to reduce discounts but brokers are preventing the investing public from doing so!
AJ Bell have announced this online presentation. I have little interest in PPPEt as it looks like they mainly invest through other funds- learnt a lesson with CT Private Equity Trust (LON:CTPE) about this type of PE fund. BIOG is of interest to me- though again failed to make much return with ARIX until it was taken over. I keep think there is money to be made in Biotech- but so far alludes me.
Monday 18 November 2024
Biotech Growth Trust (LON:BIOG) and Patria Private Equity Trust (LON:PPET)
Shares Spotlight webinars feature presentations from directors of companies explaining their investment propositions followed by an opportunity for you to ask questions. This is your chance to hear first-hand from the directors of companies and how they are going to generate shareholder value.
Registering and joining us for webinar is very simple; simply register your details and follow the link you will receive in your confirmation email at the scheduled time of the webinar.
Click on the REGISTER tab now to secure your place!
The following companies will be presenting:
The Biotech Growth Trust seeks capital appreciation through investment in the worldwide biotechnology industry. The investment manager (OrbiMed) takes a bottom-up approach to stock selection based on intensive proprietary research. Stock selection is based on rigorous financial analysis, exhaustive scientific review, frequent meetings with company management and consultations with physicians and other industry experts.
The Patria Private Equity Trust provides investors with exposure to leading private equity funds and private companies, mainly in Europe. It invests in private equity funds by making primary commitments and secondary purchases, and it makes “direct” investments into private companies via co-investments and single-asset secondaries.
* Please note this is not the order of presentations, please see event timings below for specific time slots, subject to change
Who Should Attend
The evening exposes investors to companies across various sectors. Perfect for existing investors as well as those looking for new investment opportunities.
The webinar will not require your participation in the form of audio or video, however you will have the opportunity to ask questions of the presenters via an online chat window during the presentation.
Evening timings
18.00
Introduction
18.05
Biotech Growth Trust
18.30
Patria Private Equity
Alan Gauld, Senior Investment Director - Patria Private Equity (PPET)
18.55
To Be Confirmed
19.20
End of webinar
I have had clarification- Stockopedia have changed the system-"We have recently changed the functionality so posts can only be edited for a certain window of time (in line with the comments). Stocks can still be tagged with the @ functionality in the comments section, rather than edited into the main body of the article." I have pointed out to Megan the issue is that a stock mentioned using @ in comments does not appear as a link under the discussion of that stock. I have raised this before.
Re-posted
Virtual Investment Trust Portfolio Spooky Halloween Post Budget Update - week 451
Interesting- so if I read correct 7% p/ return including Divs? From 2016
Charles.
I’ll reply and add more info via the Virtual Portfolio post and not this one.
A reply to Charles’ question and adding more to the reply from number33, along with a request for replies to the latter part of this post.
Yes. It’s only a modest 7% annualised gain since the portfolio started in 2016. But hopefully people reading this post will also look closely at the portfolio itself to see the wealth of info provided by number33 and see some remarkable ups and downs.
e.g Look at the “Relative Value from Launch” chart which shows how the Portfolio doubled by late 2021. That was an annualised figure well in to double figures.
Also see the fast 60% gain ahead of covid followed by a drop all the way back to the starting point! I remember number33 posting then that that was an opportunity for those who missed that first big gain. Indeed it was. The whole portfolio DOUBLED in just over a year! So there have been opportunities to take out the original stake and run the Portfolio for “free.”
BUT then see the very poor performance since that late 2021/early 2022 peak (and for chartists the double top then). So now nearly 4 years after that peak the portfolio is still below that quick doubling of the whole portfolio.
Also that “Relative Value Chart” shows how throughout the Virtual Portfolio outperformed the UK indexes ……..but the “One Year Growth Chart”reflects again the recent poor performance. (Note too the DIABOLICAL AIM performance! It’s now all the way back to where it started.
In a separate post another time I’ll cover why the Virtual Portfolio has not done well for too long and (after getting some replies to help with that please) suggested changes to try and perk up performance.
So it would be good to see some replies to this post with possible sells and alternative buy suggestions, along with your thoughts on why it has gone wrong for too long now.
Good to see the KITE again Ken and number33, thanks for sharing. +7% annual return with dividends reinvested turns 100K into 387K over 20 years. Pretty good if inflation is under control.
Ken, coming back to you with one or two thoughts (in no particular order)....
# In general, the KITE holdings are high quality and I know you have bought to take advantage of unusually wide discounts eg: Aew UK Reit (LON:AEWU) and Alternative Income REIT (LON:AIRE) in 2020 when lockdowns had closed most retail and office spaces.
# On paper, Fidelity China Special Situations (LON:FCSS) is a buy right now but you know my thoughts on the Chinese Communist Party. Publicly quoted education companies were forced out of business almost overnight a few years back. China is a no for me I'm afraid.
# BlackRock World Mining Trust (LON:BRWM) is a solid hold. I posted in the last few weeks over on your mining thread on separate interviews given by the trust managers and the reasons for holding this long term. From a personal perspective, it's just annoying when the SP slips. Trust income is expected to tick back up again in 2025 so good for dividends.
# Again, a personal preference: 3i (LON:III), Oakley Capital Investments (LON:OCI) and HgCapital Trust (LON:HGT) are the best private equity trusts. It's too easy to say Harbourvest Global Private Equity (LON:HVPE) is trading on a super wide discount now; for me, it has too many holdings and the NAV is always more out of date as a result of the maths taking longer.
The 3 trusts I like in this sector invest in a much smaller number of specific companies and look to help develop those holdings. Sales at premiums to carrying values are important. I hold HgCapital Trust (LON:HGT) because of the preference for back office software companies.
Need to be careful when looking at share purchases for Oakley Capital Investments (LON:OCI), often they are by the founder Peter Dubens who now owns approx 11% of the trust. Preferably we want to see other managers of the trust buy shares as well.
Fwiw, this is the SP performance of private equity trusts with a mkt cap > 500m filtered on 10 year annualised. No surprises which 3 are the best although now I look at the list, there are some others that I don't know much about. Would like to add to HgCapital Trust (LON:HGT) at some point.
# On Vietnam, it will be interesting to see what happens to the SP and NAV when the current redemptions go through for VietNam Holding (LON:VNH) . I'm looking to buy more of VNH if and when the discount opens out again. See my post from 5th October on why I prefer VietNam Holding (LON:VNH) to VinaCapital Vietnam Opportunity Fund (LON:VOF) although I could be wrong, it has been known :-)
# The REITs are great dividend payers! Aew UK Reit (LON:AEWU) is flat over 1 year but pays 8% yield and still available on a discount of -10%. Pre-Covid, it traded much closer to NAV. Alternative Income REIT (LON:AIRE) is much the same although a smaller mkt cap and so maybe not much institutional interest. I hold SREI as a result of you flagging it in several posts; a lower yield of 6.7% but 6 years of dividend cover and still available of a discount of -20% even after closing the discount by 15% over the last year. I am a happy holder. btw, my Primary Health Properties (LON:PHP) holding (although not an investment trust), is now almost at breakeven! I got my timing badly wrong in late 2022 but it should continue to pay out and all income is welcome as far as I'm concerned.
# I wonder what the average PE ratio is for the Jpmorgan Uk Small Cap Growth & Income (LON:JUGI) underlying holdings ? The S&P500 is so skewed by the Mag7 or Fab4 or whatever the latest acronym is but I suspect there is value to be had at the smaller mkt cap end.
# I'm tempted by Schroder European Real Estate Investment Trust (LON:SERE) but I fear it maybe misunderstood in the same way Tritax EuroBox (LON:EBOX) was ? I'm guessing a little. I went to Mello London on Friday and John Lee mentioned M&G (LON:MNG). I'm surprised to see it below 200 pence again and will probably buy some of those this next week for the 10% yield.
# On the tech trusts, it's much of muchness in terms of SP performance. I was impressed by the Allianz Technology Trust (LON:ATT) presentations at the AIC Conference last month. AI is only going to get more powerful, the MS Office I use at work can translate an email from one of a dozen foreign languages into English in under 30 seconds. I'm not sure it will result in mass unemployment, rather more productive humans.
# India is too expensive for me. An opportunity will open up for me to buy into this country at some point. I keep meaning to look at Scottish Oriental Smaller Companies Trust (LON:SST) to understand average valuations and yields at some point. Not sure India will develop in the same way as China or Vietnam though, still very rural.
# For me personally, Caledonia Investments (LON:CLDN) has been a disappointment so far but much like North Atlantic Smaller Companies Investment Trust (LON:NAS), it is run almost like a family office and so (hopefully) a long term holding. It's worked for the Cayzer family since the mid 1960s.
# Augmentum Fintech (LON:AUGM) is really a private equity trust focused on the finance sector. I like it and I notice the Q3 fact sheet was recently issued. Much like the PE trusts above that I like, Augmentum Fintech (LON:AUGM) has very few holdings and so they have to know them well and also understand how they can add value.
https://tinyurl.com/5ymtnu4v
# Schroder Oriental Income Fund (LON:SOI) has performed well for me and the dividend has been increased although not as large as Henderson Far East Income (LON:HFEL). again, I would like to add, the manager has been successful on the back of owning Taiwan and Hong Kong tech and also avoiding mainland China.
# On the UK small cap front, I hold Aberforth Smaller Companies Trust (LON:ASL) because the average PE of the underlying holdings is around 8 or 9 and it is one of the largest in the sector and hopefully receives good institutional flows as a result. Rockwood Strategic (LON:RKW) is too small for me and I think trades at a discount although I really enjoyed the Mello presentations earlier in the year. I will look at Oryx International Growth Fund (LON:OIG) again although my Christopher Mills' comments re: more family office than small cap trust apply. Will be interesting to see how this sector fares given the tax rises just announced by the new UK government.
But then that is the great thing about investing in investment trusts: we can be global investors AND we can wait until we can buy 100 pence of assets for 70 pence! Patience is a virtue. Final point, I really liked this Money Maze interview with Joel Greenblatt; on 27 minutes, JG repeats the Warren Buffet advice for investors of knowing their circle of competence. Why bring this up ? Because we must stick to a process when buying investment trusts: buying proven managers at a wider discount to NAV than usual and with well covered dividends.
https://tinyurl.com/344svkcw
So not many new ideas. Apologies for that. But at least these are my thoughts.... likes, dislikes and all! Thanks again for sharing the KITE, it pushes me to look at other trusts.
SSB
Thanks for that fabulous post on the KITE (now VIRTUAL INVESTMENT TRUST) Portfolio, ShoeShineBoy, along with your analysis of other Trusts as well.
I’ve no time for a full reply now but will do that later. You’ve provided some SO helpful comment and facts and figures on the portfolio holdings and I’ll be making several changes to the portfolio just thanks to the info and opinions in your post. E.g Harbourvest Global Private Equity (LON:HVPE) should have gone and HgCapital Trust (LON:HGT) would have been and probably still is the one to switch to.
Any newcomers to Investment Trusts reading this post and ShoeShineBoy’s, relying mainly on his superb info and not then further checking, beware of stunningly successful Private Equity Trust 3i (LON:III). It’s on a huge 48% PREMIUM to NAV. AND it has 69% just in its huge winner Action SA (WAR:ACT. Too many eggs in just one basket is an investment tactic I avoid like the plague. What if it suddenly goes badly wrong? So 3i (LON:III) has been a huge outperformer and winner for holders but buying now is after those big gains and at far too high a price. Why pay 48% more than this now very risky Trust is worth?
Also ShoeShineBoy questioned the PE ratios of the top JPmorgan US Smaller Companies Investment Trust (LON:JUSC) holdings. I had no idea and haven’t looked at this Trust for ages. Eye opening!!! Here are the PE ratios for 5 of their top holdings. 38, 24, 170, 35, and 99. Wow! Yet performance of the Portfolio is pathetic at 44% gain since 2020, bearing in mind the high flying US market. It’s definitely leaving the Portfolio.
No time for more now.
ShoeShineBoy.
This is following up your very helpful post on the VIRTUAL PORTFOLIO holdings and detailed comment on some of them.
The portfolio clearly needs waking up. re China……your justifiable doubts are solved with Fidelity China Special Situations (LON:FCSS) in the portfolio for free after topslices. Jpmorgan China Growth & Income (LON:JCGI) is a more recent buy and I’ll watch for now and see market reaction to their next stimulus update to counter the Trump sanctions. It’s Jpmorgan China Growth & Income (LON:JCGI) that would go and not Fidelity China Special Situations (LON:FCSS) .
Also in Asia Pacific Horizon Investment Trust (LON:PHI) has been a big letdown and Shoukd also go.
I agree about Harbourvest Global Private Equity (LON:HVPE) and will switch to HgCapital Trust (LON:HGT) as agree it looks much the better of the two, and it used to trade at a big premium and could again when at last Private Equity Trusts are back in favour.
And yes again, Caledonia Investments (LON:CLDN) has been a disappointment and I’ll sell it.
I was going to sell JPmorgan US Smaller Companies Investment Trust (LON:JUSC) after reading your thoughts, but it went up a lot this week on Trump winning, so best to hold for now?
I’ve a hunch that a lot of Investment Trust fans reading the posts here, will like me and several others who’ve posted the same view, prefer their own choices for UK shares and not Investment Trusts. So Blackrock Throgmorton Trust (LON:THRG) which has disappointed anyway could be sold.
This post is mostly thoughts on tidying up the sells. It now needs new buys that might give the PORTFOLIO a big boost. Anyone knowing any that might fit the bill, please post.
For anyone who is wondering, KITE was the old name of the portfolio. It will be corrected next month.
It’s time to make the promised changes to the VIRTUAL PORTFOLIO with 3 sells and 1 new buy. No reasons in this post as they have already been covered in a reply to ShoeShineBoy.
Note that the buy and sell prices for all the PORTFOLIO sells and buys are the buy or sell price at the time of this post, or if that trade is very recent, the last sell or buy price before I start the post. And number33 adds dealing charges and stamp duty when stamp duty applies.
So it’s all as transparent as with our own portfolios with no cheating allowed and once this post appears the buy and sell prices in it are final. (The only very rare exception is a careless typo price being corrected).
So please number33:-
1. SELL Harbourvest Global Private Equity (LON:HVPE) at £24 and put the proceeds in to HgCapital Trust (LON:HGT) at £5.39.
2. SELL Blackrock Throgmorton Trust (LON:THRG) at £5.93
3. SELL Caledonia Investments (LON:CLDN) at £34.15
There is now more cash for new buys.I’ll hold off those for a bit longer in case there are suggestions from posters here rather than just go ahead with my choices. I want improved performance…..and soon, so going for new buys where we hope for shorter term share price gains are the target buys.
Hi Ken,
I topped up Henderson Far East Income (LON:HFEL) last week after its final results - whilst its turnaround following new managers & style have not continued in line with pre-July performance, I am encouraged by its positioning.
One for the future I think if we can avoid a global crash.