Investment Trust- Thoughts (April 2025)

1st Apr by Charles Mitchell

209 comments 6818 reads

Investment Trust- Thoughts (April 2025)

Links to older monthly thoughts-reader request.

March 2025 February 25 January 2025 December. November October

September August July June May April March February

For more information on Investment trusts visit:

Association of Investment Companies.

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

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

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

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

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

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

Plenty of performance data on that site.

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

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

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

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

March 2025 Investment Trust monthly performance.

Top 10 Equity only

abrdn New India Investment Trust (LON:ANII) +9.2%

Jpmorgan Indian Investment Trust (LON:JII) +8.3%

Pantheon Infrastructure (LON:PINT) +6.4%

Ashoka India Equity Investment Trust (LON:AIE) +6.3%

India Capital Growth Fund (LON:IGC) +4.5%

HICL Infrastructure (LON:HICL) +3.7%

Oryx International Growth Fund (LON:OIG) +3.3%

Schroder British Opportunities Trust (LON:SBO) +3%

Marwyn Value Investors (LON:MVI) +2.9%

Ecofin Global Utilities and Infrastructure Trust (LON:EGL) +2.7%

Bottom 10 Equity only

Schiehallion Fund (LON:MNTN) -24.3%

British and American Investment Trust (LON:BAF) -17.1%

Manchester And London Investment Trust (LON:MNL) -15.9%

Molten Ventures (LON:GROW) -15.6%

Polar Capital Technology Trust (LON:PCT) -14.2%

RTW Biotech Opportunities (LON:RTW) -12.6%

Allianz Technology Trust (LON:ATT) -12.5%

Herald Investment Trust (LON:HRI) -11.7%

Baillie Gifford Us Growth Trust (LON:USA) -11.6%

Athelney Trust (LON:ATY) -11.4%

Top 10 All trusts

Care REIT (LON:CRT) +38.4

Harmony Energy Income Trust (LON:HEIT) +35.1%

Life…

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ken mitchell

Sun 9:35am

Ahead of a Continental holiday I thought it could be a good idea to do a post covering more mainstream Trusts. We can have an all Investment Trust portfolio, or as I guess most of us prefer, a mix of Trusts and shares.

Trump’s madness could well mean further days or more of big market falls ahead. For safer pooled investments like Investment Trusts, it’s ideal drip feeding in to Trusts then and if there are further falls averaging down to build up the stake for a potential successful long term hold. Averaging down an Investment Trust buy is far less risky than doing that for a single share where it can be throwing good money after bad.

Also the lower we can buy the more we maximise the dividend yield.

The following are the key mainstream Investment Trusts sectors, along with examples of a couple of the best performers in each sector.

I’ll also use the edit facility to add the excellent AIC link for each sector to the page showing every Trust in it, with 1, 5 and 10 year performance along with a wealth of other must check information, like portfolio and that Trusts top 10 holdings along with percentage vested in each one,

I’ve excluded the REIT and Renewable Infrastructure sectors as arguably neither are mainstream but mainly because they get so much excellent coverage here.

So here goes:-

ASIA PACIFIC INCOME

Invesco Asia Dragon Trust (LON:IAD) Outperformed over 1, 5 and 10 years. 10% discount and 5% dividend.

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

ASIA PACIFIC SMALLER COMPANIES.

Scottish Oriental Smaller Companies Trust (LON:SST) 13% dividend and 5% dividend.

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

BIOTECH

International Biotechnology Trust (LON:IBT) 8% discount and 5% dividend. Trump has helped it down from £7.24 to £5.46.

Polar Capital Global Healthcare Trust (LON:PCGH) 6% discount. Share down from £4.60 to £3.10

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

CHINA.

Now could be a very good long term buy opportunity with Trump perhaps leading to a big China stimulus package along with share picks near multi year lows.

Jpmorgan China Growth & Income (LON:JCGI)219p Near to Rick bottom (so far) 190p last August. 824p was covid bubble peak. 9% discount and 5% dividend.

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

COMMODITIES

BlackRock World Mining Trust (LON:BRWM) 9% discount and discount and 5% dividend….which goes much higher in boom years for MiNERS. .

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

COUNTRY SPECIALIST

VietNam Holding (LON:VNH) 7% discount. Was recently at a premium. Share down from 422p to 309p. Great buy on the dips Imo.

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

EMERGING MARKETS.

Jpmorgan Global Emerging Markets Income Trust (LON:JEMI) 142p on 11% discount and 4.2% dividend. Its performance is almost as good as their non income Emerging Markets Trust.

Templeton Emerging Markets Investment Trust (LON:TEM) 159p 12% discount and 3% dividend.

Utilico Emerging Markets Trust (LON:UEM) 17% discount and 4.4% dividend. Focus is Utilities and Infrastructure.

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

EUROPE

JPMorgan European Growth & Income (LON:JEGI) 5% discount and 4.4% dividend. Note how often the JP Morgan Trusts are top performers in their sectors!

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

EUROPEAN SMALLER COMPANIES

European Smaller Companies Trust (LON:ESCT) 6% discount 2.7% dividend.

Montanaro European Smaller Companies Trust (LON:MTE) 7% discount. Insignificant dividend.

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

GLOBAL.

LOTS of good performers.

Brunner Investment Trust (LON:BUT) 3% discount. Recent fall from £15.25 to £12.84.

F&C Investment Trust (LON:FCIT) 7% discount and discount.

Scottish Mortgage Investment Trust (LON:SMT) 9% discount. Recent fall from £11.32p to £8.65p.

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

GLOBAL EQUITY INCOME.

Jpmorgan Global Growth & Income (LON:JGGI) 4.5% dividend. 2% premium.

Invesco Global Equity Income Trust (LON:IGET) 4% dividend and 1.2% premium.

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

INDIA.

Still overvalued?

India Capital Growth Fund (LON:IGC) 159p. 10% discount.

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

JAPAN

JPMorgan Japanese Investment Trust (LON:JFJ) 8% discount.

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

JAPAN SMALLER COMPANIES

AVI Japan Opportunity Trust (LON:AJOT) 2% discount.

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

NORTH AMERICA

JPMorgan American Investment Trust (LON:JAM) 1% discount.

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

UK ALL COMPANIES.

Loads to choose from.

Fidelity Special Values (LON:FSV) 4% discount.

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

UK EQUITY INCOME.

Some outstanding long term performers to choose from.

Merchants Trust (LON:MRCH) 2% discount and 5.5% dividend. 50 year record of dividend increases.

Jpmorgan Claverhouse Investment Trust (LON:JCH) 5% discount. 4.8% dividend.

Edinburgh Investment Trust (LON:EDIN) 9% discount. 3.7% dividend.

Temple Bar Investment Trust (LON:TMPL) 2% discount. 3.8% dividend.

Law Debenture (LON:LWDB) 2% premium and 3.8% dividend.

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

UKSMALLER COMPANIES.

Oryx International Growth Fund (LON:OIG) 35% discount despite very good performance. Share price recent fall from £14.55 to £10.90.

Jpmorgan Uk Small Cap Growth & Income (LON:JUGI) 12% discount. Share down fro £3.75p to 280p.

Rockwood Strategic (LON:RKW) 6% premium. Deserved as performance is fabulous. I’ve joined Rockwood and bought Capita (LON:CPI) as a great potential recovery share to lock away. Share down a bit to 240p from recent 286p.

Strategic Equity Capital (LON:SEC) 9% discount. They really engage with the Companies they hold. Share down to 290p from 380p.

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

TECHNOLOGY.

Allianz Technology Trust (LON:ATT) 9% discount.

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

PRIVATE EQUITY.

Not mainstream but HgCapital Trust (LON:HGT) £23.50 has from memory never made a disposal at less than they paid for it. Discount 10%. Used to trade at a significant premium.

Also Harbourvest Global Private Equity (LON:HVPE) on 44% discount and Oakley Capital Investments (LON:OCI) on 35% discounts have very good records.

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

17th Apr

Good for you for trying Charles. Hope you get a reply but doubtful that you will. I’m fed up with Augmentum Fintech (LON:AUGM) bragging every time they update about the value in their portfolio, but so disappointed that that’s as far as it gets.

The share price has been falling for the past 4 years and is now down 50% since the 173p peak. It’s down another 24% year to date. Do the Managers care?

It’s reached the stage now where it’s risky selling because on fundamentals IF NAV and their comment can be trusted the share is so cheap that it might tempt a bidder perhaps?

Charles Mitchell

We need SABA or Achilles. Achilles probably could sort this, good with odd assets re song rights.

Citywire’s weekly update:-

https://citywire.com/investmen...

Note that Augmentum Fintech (LON:AUGM) features in the cheap Trusts list because of that big widening of the discount to 51% as the share fell even further.

And what a bonus for anyone here still holding Harmony Energy Income Trust (LON:HEIT) with that increased bid from Foresight today. The share price has nearly doubled since they put themselves up for sale.

The other 2 in the sector Gore Street Energy Storage Fund (LON:GSF) and Gresham House Energy Storage Fund (LON:GRID) are both on discounts of over 40%. Could they go too? (I hold Gore Street Energy Storage Fund (LON:GSF) but missed out in Harmony Energy Income Trust (LON:HEIT) ).

Brucie5

18th Apr

Thanks, agreed. It may turn out that the seemingly calamitous fall in value of such REITs last year was indeed a buying opportunity. Gore Street Energy Storage Fund (LON:GSF) in retrospect, a " fill yer boots" prospect, yet who was to know whether to believe stated Navs let alone improbable dividends. SDCL Energy Efficiency Income Trust (LON:SEIT) another.

planetx

Sat 10:47am

REIT v Renewables v Fund Managers v Trusts

Learning a lot from you guys on here particularly Ken/Charles/Tim as I try to pivot from high risk deep value high conviction small cap portfolio to something more high yielding but main reason is liquidity / value trap .

Don't mind the high risk but in extreme market conditions that I had correctly figured out were upon us couldn't afford to have such illiquid big positions total trap.

Switched a good chunk about a month ago , 25% went into mixed Reits, 25% into Renewable trusts, 25% into trusts at huge discount NAV , 25% to fund managers high yielding below NAV

Fortunately didn't deploy all at once so managed to buy the dips in the Trump fuelled car crash dip.

Results are

REITS - Held up and sat level now.

Renewables - As above all held up

Funds - down about 10% but Im pretty bullish that this is the potential best area as inflows to the UK are very likely

Trusts - All held up with the exception of the two Vietnam trusts that I timed badly, did manage to top up at the bottom. Im quite keen one Vietnam as it' almost certain to be a beneficiary due to its proven ability to produce quality goods, USA will need Vietnam now that China is playing hardball .

Going to extend this strategy bit further and looking to add to the following which haven't bounced much and ive learned a bit more .

Here's what's on my add / buy list , anything a bit questionable give me the nod if you don't mind

Ive ruled out the ones that have had big gains since the lows but have them on watch list if they drop .

REITS - CLS , RECI , SERE, NRR, RESI, SREI, AIRE, AEW

RENEWABLES - GCP, SEIT, SEQI, FGEN, HGEN

TRUSTS - HGEN (not sure where to classify it)

FUND MANAGERS - No additions

Im liking HHGEN a lot but that's me getting excited by a pretty small market cap.

Anyway thanks for your posts its an intriguing change for me to move investment styles but the reduction in volatility and increased liquidity is good for ones headspace.

Sat 4:23pm

Investor Meet Company nexy week.

IMPAX ENVIRONMENTAL MARKETS PLC
Investor Presentation
23rd Apr 2025 at 2:00pm BST

PREMIER MITON GLOBAL RENEWABLES TRUST PLC
Post AGM Update
24th Apr 2025 at 3:30pm BST

MOLTEN VENTURES PLC
About Molten
25th Apr 2025 at 10:30am BST

The Ox 2906

Sat 8:35pm

https://podcasts.apple.com/gb/...
I’m sure a lot of you are aware of this podcast but it’s really good and always knowledgeable guests and sensible thoughts.

Sun 12:10pm

The first 2 AIC links are incorrect. Easy to find the correct ones.

ShoeShineBoy

Sun 12:35pm

Hi Ken,

thanks for posting, it's a good list. Personally, I would like to get some exposure to India and tech but as per my post on the excellent Edmund Shing column, I'm not convinced by the valuations. At a super simple level, what stops me from being a successful investor by holding circa 15 names focused on large, good quality and good value trusts plus insurance companies / wealth mgt companies for dividends ? I would like to get to the place where I am fully invested, have almost zero turnover in my portfolio and paying next to no transaction fees to brokers! The downside of this approach is that I could miss out on future growth areas such as Augmentum Fintech (LON:AUGM) which I like but seems to be struggling due to it's limited transaction history. Anyway, I digress.

I haven't posted here for a while but enjoyed reading other people's thoughts so thanks to those that have shared their views. Difficult seeing the markets decline sharply but not quite the same as the Covid sell-off so I was more focussed on trying to pick up quality trusts at depressed prices. I made the following changes:

Sold Capital Gearing Trust (LON:CGT) . I get the purpose of the trust but it's ultra cautious and there is duration risk on a trust that holds so many different bonds. Peter Spiller has an excellent track record (3 down years in 40+ years of investing I think) and his views are always interesting and relevant but the SP has declined slightly over the 3 years I have held it and it's a small holding for me so it's gone. I don't hold but I tend to think of TR Property Investment Trust (LON:TRY) and Migo Opportunities Trust (LON:MIGO) in the same way ie: the managers are worth listening to because they have so many years of experience in the markets but the trusts have done almost nothing for the last 5 years so why hold them ?

Sold Schroder Real Estate Investment Trust (LON:SREI). Unlike Capital Gearing Trust (LON:CGT), this has made me a good return (both capital and dividends) over the last couple of years. Schroder Real Estate Investment Trust (LON:SREI) is a solid trust. But I am making a conscious effort to buy trusts that are bigger in mkt cap. It's a personal choice. It hopefully means less chopping and changing to see if different things work. We'll see.

Bought Tritax Big Box REIT (LON:BBOX). Only a half trade. I used the cash from the Schroder Real Estate Investment Trust (LON:SREI) sale. The update highlighted by Charles on Wednesday convinced me to buy back in after selling at the end of 2021. Annual results released on 28^th February state Tritax Big Box REIT (LON:BBOX) has a 28% LTV ratio (SSB: pretty conservative), 3% cost of debt with 93% of the debt either fixed or hedged. I can't see the occupancy percentage but this has never been a problem before. Current discount to NAV is 24% and the yield is almost 6%. It was only a half trade for me. I would like to add again in the next few weeks or months to make it up to a full trade. The recent RNS of note are below.

https://tinyurl.com/25bwh6at

https://tinyurl.com/mr3mz88j

Bought more Schroder Oriental Income Fund (LON:SOI). A relatively stable trust with broad Asia exposure. It's not knocking the lights out but it is giving me a decent yield from a different geographical area. I used to hold Henderson Far East Income (LON:HFEL) but the total return was negative so that went a couple of years ago; I understand the point being made over the new investment policy but once bitten for me I'm afraid. I would like to supplement Schroder Oriental Income Fund (LON:SOI) with some additional India exposure but I'm working through that (very) slowly.

[Right click >>> Open image in new tab].

Schroder Oriental Income Fund (LON:SOI) is middle of the road in terms of performance.

And finally bought more HgCapital Trust (LON:HGT). This position is now up to a full trade and my thinking here is based on the underlying investments (55 businesses invested mainly in back office software which have high recurring revenues), their history in selling investments at above NAV and the recent gap opening up between the NAV and the SP (highlighted in yellow below).

Recent annual results read well. I was surprised at the scale of new investments in the year (£606m), gross realisations (£508m) and outstanding commitments to be invested over the next 3 years (£735m). The commentary also notes strong recurring revenues where investments have not been sold. And where exits were achieved, they were "at an average of 15% above their last reported carrying value". Hope this is a very long term investment for me. What are the risks ? A fairly recent MM podcast interview noted the potential for software outages and the risk of cyber attack.

Final note is the top 10 investments account for 56% of the trust's NAV. Look at the sector column.... all boring activities spread throughout EMEA and AMER. Really like that.

https://tinyurl.com/2hkydpzu

I would have liked to have added to Caledonia Investments (LON:CLDN) and AVI Global Trust (LON:AGT) but I decided not to do that given 1.) I don't usually execute the above number of trades in one go (and one of the above will almost certainly be the wrong decision, I just don't know which one yet!) and 2.) both CLDN and AGT have a number of positions in different countries that will take some time to work through in terms of understanding the impact of additional tariffs. Again, I view both as conservative (almost dull) trusts so hopefully not too much long term damage from recent events.

Finally, I liked what Andrew McHattie had to say on the MM podcast a few weeks back re: infrastructure trusts. He talked about his holding in BBGI Global Infrastructure SA (LON:BBGI) being acquired and what he thinks is the best use of that cash now. He prefers the other large in the Infrastructure sector, particularly HICL Infrastructure (LON:HICL) and International Public Partnerships (LON:INPP) rather than the Renewable Energy Infrastructure sector because of the variability of power prices. I hadn't thought of it like this but I quite like the thinking.

https://tinyurl.com/23cbcs7k

The 2 really positive things about BBGI Global Infrastructure SA (LON:BBGI) were the internal mgt team and the zero debt. The former allowed the trust to make long-term decisions in the knowledge the team would not change and the latter reduced the negative impact of rising interest rates.

So what is on offer amongst the large cap infrastructure trusts ? The below is filtered by mkt cap. BBGI Global Infrastructure SA (LON:BBGI) stands out as the only trust with no gearing. International Public Partnerships (LON:INPP) is the second lowest gearing and maybe that is the one to do more reading. Especially if the yield can be maintained. Views welcome.

SSB

Sun 4:00pm

Thanks for that great reply ShoeShineBoy. I’ve only time for a brief reply for now.

Re your first paragraph,, Agree about trying to reduce portfolio turnover and have largely achieved that now with changes just around the edges or irresistible new buys, along with selling on bad news, and that doesn’t happen much with the Trusts I hold.

Also agree about Tritax Big Box REIT (LON:BBOX) and the recent dip looked a good buy opportunity. I’ve held Schroder Real Estate Investment Trust (LON:SREI) for a good while and it might tempt a bidder. Also it fell more than other REITS recently for no good reason and hasn’t yet fully recovered that loss. In case you missed the posts on this, Andrew McHattie thinks the whole sector could see corporate action. btw…Andrew is the guest on Money Makers podcast this week and it’s very good again.

The only reason I,don’t hold Schroder Oriental Income Fund (LON:SOI) and HgCapital Trust (LON:HGT) is my need to maximise income from our portfolios.

As for Henderson Far East Income (LON:HFEL) . General consensus is it’s a strong sell, including Andrew McHattie explaining why in the latest MM update. I’m going to give it a bit longer just in case it’s a case of performance at last turning round just as nearly everyone is giving up on it.

Hope your investment changes work very well.

Sun 4:13pm

Gearing. One of the advantages listed investment trusts have over open-ended funds is gearing- the ability to borrow funds to invest. So if they borrow say 10% of the fund in short term borrowings and the market goes up shareholders benefit form that borrowing, less the cost of the interest on the borrowings. So if your feeling Asia may be due a bounce over the short term maybe buy Fidelity Asian Values (LON:FAS) which currently has gearing of 21%. If you think the Asian market may fall then avoid FAS as the effect of gearing will negatively effect NAV. Fidelity China Special Situations (LON:FCSS) has gearing of 25%- so if as Ken suggests below you think the Chinese Government will stimulate the economy buy FCSS. Interestingly at the moment none of the Vietnamese trusts are geared. Fidelity seem to like gearing-the Fidelity European Trust (LON:FEV) has 13% gearing. Blackrock Frontiers Investment Trust (LON:BRFI) is geared 22% and could well be worth a look at as the world trading pattern looks like it maybe undergoing a change thanks to Trump and emerging markets could well be a beneficiary. China certainly is looking at expansion in the Pacific basin and Latin America (and Africa but limited stock opportunities at the moment). In India abrdn New India Investment Trust (LON:ANII) has 9% gearing and on a discount of 14.8%. Not performed that well but might be worth a look to see if new fund managers have come in-I have not looked at it recently. Fidelity Japan Trust (LON:FJV) is the highest geared Japanese trust with 26% gearing followed by CC Japan Income and Growth Trust (LON:CCJI) at 23% and Baillie Gifford Shin Nippon (LON:BGS) which invests in smaller Japanese companies at 19% gearing. In the UK Equity Income sector Chelverton UK Dividend Trust (LON:SDV) has 55% gearing and a yield of 7% and All Uk Schroder UK Mid Cap Fund (LON:SCP) has gearing of 13%.

If your cautious but want to stay invested there are loads of ungeared Trusts top choose from- AVI Japan Opportunity Trust (LON:AJOT) ,Aurora UK Alpha (LON:ARR) Ashoka WhiteOak Emerging Markets Trust (LON:AWEM) Jpmorgan Asia Growth & Income (LON:JAGI) Lindsell Train Investment Trust (LON:LTI) to name a few.

The AIC can be filtered to show highest and lowest gearing rates on the Compare Investment Companies page and you can then filter by sector as well.

Gearing used well is a great tool for the shareholder. There are different types of gearing- some trusts have medium-long term gearing in place. Some use overdrafts for short term gearing./ Some use both. You would need to look at each trusts accounts to work out what they have. I will suggest to AIC they see if they can get gearing broken down into short and medium term.

Sun 6:06pm

Just to say, great posts, thank you. Off on my hols myself, so mainly just skim-read.

Keep it up!

Happy Easter.

Tue 4:48pm

Biopharma Credit (LON:BPCP) is a share I don't think I've seen much mentioned here, and one which I hold on behalf of a charity. We're 9% down from book cost, but given that we first took the position in autumn of 23, we've taken considerably more in dividends. The folio is designed on a passive, annuity type basis, with initial high income with growth tailwind, and so far I've only made one adjustment. About 40 shares, including many ITs familiar here. Each month I simply need to decide how to reinvest the dividend income.

The trust seems well regarded, with decent capital return over 1-5 years:

9.8

27.0

53.7

Dividends have been reliable and there have been some specials along the way.

Here's the link to the AIC and forgive me if this has already been well explored as an idea.

BioPharma Credit | The AIC

Wed 9:10am

The AIC have advised me that the types of gearing trusts have is in the monthly MIR spreadsheet on the site. Here is the link https://www.theaic.co.uk/resea...

Wed 1:54pm

Augmentum Fintech (LON:AUGM) A response of sorts.

"The Board is very aware of the discount to net asset value at which the Company’s shares have been trading and monitors it closely. It is a topic of discussion at Board meetings and regularly discussed with our advisers. We are also acutely aware of our fiduciary responsibility to act as best we can for the benefit of all shareholders.

Discounts have become very common across the investment trust sector and particularly when private or illiquid investments are held. They appear to be very much a symptom of investor sentiment; investment trusts seem to be out of favour at the moment and those with unlisted assets are seen to be higher risk and so more acutely affected.

Various methods of 'discount control' are in evidence across the sector, but with generally very poor results, as can be seen from the persistence of discounts in the sector generally. We have undertaken our own efforts, with buybacks and, via our brokers and investor relations advisers, sought to promote the Company’s approach and the latent value in its approach.

We continue to explore other means, but our unlisted portfolio brings with it additional factors that must be borne in mind when considering actions we might take. In weighing up what to do about it, we are mindful of our core strategy being to invest in unlisted early stage businesses, which means:

When we invest capital it is generally with the belief that our investment can grow tenfold or more, rather than double in value - albeit it will require time and support to do so.
There is not a liquid market for the early stage private investments the Company holds, so there is unlikely to be a short-term realisation solution that would return an attractive proportion of net asset value, not to mention the promise forgone.
If the Company is to continue, we need to retain 'dry powder' both for new investments and to maintain existing investments.

Fees, and in turn the compensation of our portfolio manager’s team, are also subject to regular review. We look to benchmark our fee structure and level against the market and, based on our most recent review, we believe these are not out of line for venture capital funds of our size and scope. On the one hand we don't want fees, or portfolio management performance-related pay, to be out of sync with the shareholder experience, but on the other the primary purpose of the fees is to fund a sustainable operation, which is in the interest of all our stakeholders."

I also had this from the manager Tim Levene, who does have a large shareholding " Rest assured there is plenty going on behind the scenes to address the huge disconnect with the underlying performance/potential of the portfolio and the share price. It’s not an easy fix with some major structural market issues, but I know the PLC Board are working hard across a number of work streams and I hope will articulate some more substantive thoughts when they report our year end results in a couple of months…"

We will wait and see.

Wed 3:44pm

Pershing Square Holdings (LON:PSH) Citywire state that Ackerman of Pershing Square has bought 20% of Hertz Global Holdings (NSQ:HTZ) whose price then soared, but as of 31 March PSH did not show a holding. It could be just in his holding company rather than the trust. Citywire commented that the trust share price did not move- maybe because they do not have a direct holding. Hard to know really.

Thu 7:29am

Molten Ventures (LON:GROW) announces estimate estimated NAV of 671p. Year on year small increase in NAV, though looks like in part due to share buyback. They partially realised the holding in Revolut above last valuation in the NAV and made some other significant disposals above valuation.
I bought a few weeks ago due to the large discount and the fact they focus on European tech rather than US.

The discount on these trusts investing in unquoted stocks must surely reduce otherwise we may see some corporate moves. There is a huge disconnect between trusts like Grow, Oakley Capital Investments (LON:OCI) Harbourvest Global Private Equity (LON:HVPE) Augmentum Fintech (LON:AUGM) to name a few and the reality of the underlying portfolios performance.

A sector I am going to look at investing further into, I hold OCI, AUGM as well as GROW.

af20001

Thu 8:49am

Does anyone (more knowledgeable than me) have any thoughts on the news from Supermarket Income REIT (LON:SUPR) on its joint venture announced today? On the face of it, it seems like a fairly good deal - raising money to potentially use for further investments & reduce debt, while at the same time retaining an interest in the assets.

Presumably the muted share price response is explained due to it going ex-dividend today, rather than a comment on the deal.

Thu 10:15am

Seems a decent deal-30% premium to value in portfolio. I hold. I cannot see they have created a competition with the JV as Graham mentioned as a concern, that would be an obvious issue-so assume there is not one.

Investment Trust- Thoughts (April 2025)

Investment Trust- Thoughts (April 2025)

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Charles Mitchell

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