| Investment Trust- Thoughts (August 2024)

31st Jul by Charles Mitchell

147 comments 5687 reads

Investment Trust- Thoughts (August 2024)

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.

July 2024 Investment Trust monthly performance.

Equity investments only.

Top 10

Downing Strategic Micro-Cap Investment Trust (LON:DSM) +48.8%

Castelnau (LON:CGL) +31.2%

Sure Ventures (LON:SURE) +29%

Worsley Investors (LON:WINV) +15.5%

Jpmorgan Uk Small Cap Growth & Income (LON:JUGI) +15.4%

JPmorgan US Smaller Companies Investment Trust (LON:JUSC) +15.1%

CT UK High Income Trust (LON:CHIB) +13.9%

Investment (THE) (LON:INV) +13.5%

Blackrock Throgmorton Trust (LON:THRG) +11.5%

Blackrock Smaller Companies Trust (LON:BRSC) +10.7%

Bottom 10

Vietnam Enterprise Investments (LON:VEIL) -22.4%

New Star Investment Trust (LON:NSI) -19.4%

Manchester And London Investment Trust (LON:MNL) -13%

Allianz Technology Trust (LON:ATT) -8.8%

Fidelity China Special Situations (LON:FCSS) -8.8%

Jpmorgan China Growth & Income (LON:JCGI) -8.6%

Polar Capital Technology Trust (LON:PCT) -8.5%

Augmentum Fintech (LON:AUGM) -7.6%

Baillie Gifford China Growth Trust (LON:BGCG) -7.3%

Jpmorgan Asia Growth & Income (LON:JAGI) -5.3%

All asset classes

Top 5

As per equity list Top 10

Bottom 5

Vietnam Enterprise Investments (LON:VEIL) -22.4%

New Star Investment Trust (LON:NSI) -19.4%

Manchester And London Investment Trust (LON:MNL) -13%

Riverstone Credit Opportunities Income (LON:RCOI) -12.2%

Gresham House…

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Charles Mitchell

26th Aug

This weeks Investor Meet Company. CT Private Equity Trust (LON:CTPE) 29 Aug at 11.30 am and BBGI Global Infrastructure SA (LON:BBGI) on 29 Aug 14.30.

ken mitchell

A few thoughts on the Biotech/Health Trusts following up ShoeShineBoy’s post here yesterday.

I’ve now looked at the most recent updates and Kepler comment on all of them. A repeating theme is that the sector is now recovering. I only hold International Biotechnology Trust (LON:IBT) which I bought too soon 2 years ago ahead of a further 12% share price fall, but it is now 10% up, providing support for the sector is now recovering claims.

There’s an investment case for most of them. Note that some have nearly all their investments in the US. e.g Biotech Growth Trust (LON:BIOG) 80% in US, International Biotechnology Trust (LON:IBT) 75%, Worldwide Healthcare Trust (LON:WWH) 68%. Lowest in US is Polar Capital Global Healthcare Trust (LON:PCGH) with 50% and a portfolio spread across 13 Countries. This one has performed very well.

Best for dividend yield is International Biotechnology Trust (LON:IBT) looking to pay 4% of NAV at the NAV level at the end of August. So IF the sector recovers strongly International Biotechnology Trust (LON:IBT) could be paying a big dividend in time.

Not a sector for quick in and out trades; so it will only appeal to investors here looking to buy and hold. It’s a sector that in the past has had boom and bust spells. Current claims by most of the Managers in their Results comment are that it’s likely we’re in the early stages of the next good run.

All of them can be compared using this aic link:-

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

Thoughts anyone?

If not already holding any Trusts in Emerging Markets, now could be a good time to get in. Here are all the Trusts in the Global Emerging Markets sector:-

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

One that looks tempting that I don’t hold yet is JPmorgan Global Emerging Markets Income Trust (LON:JEMI)

Just a note now on buybacks. A lot of Trusts including are disappointed that they are trading at discounts, and then they get disappointed when as is happening a lot, the discount widens even further after they carry out big buyback programmes. An obvious answer to that dilemma is to abandon those buybacks and invest that money instead.

e.g JPmorgan Global Emerging Markets Income Trust (LON:JEMI) bought back 1,109 million shares. That cost around £1.4 million. But note this! That buyback only increased NAV by 0.1%!! So even if spending (wasting imo) £65 million on buybacks, even that big sum would only increase NAV by 5%…..AND there’s nowt to stop the discount from widening by 5% or more to make that £50 million down the drain! Isn’t a rethink on buybacks needed.

There have been posts recently wondering whether it’s still worth holding or buying one or both of the Vietnam Trusts. A big yes imo and I’ve held VinaCapital Vietnam Opportunity Fund (LON:VOF) and VietNam Holding (LON:VNH) since they launched and and added more after the 2008:banking crash, except for selling temporarily in the covid crash and buying them again in 2020. Performance has been fabulous, with VinaCapital Vietnam Opportunity Fund (LON:VOF) up10 fold since 2009 and VietNam Holding (LON:VNH) 15 fold.

Again as with a lot of Investment Trusts at present, it might require patience before the next big gains. Best way to find out more is to read every monthly investment update from both the Vietnam Trusts. I’m not keen on the 3rd Vietnam Trust Vietnam Enterprise Investments (LON:VEIL) .

Here’s the aic link for the Vietnam Trusts. Note that VinaCapital Vietnam Opportunity Fund (LON:VOF) remains at a big 21% discount:-

27th Aug

Barings Emerging Emea Opportunities (LON:BEMO) is worth looking at. They publish interesting factsheets- including 3 so far country spotlights. https://www.barings.com/en-gb/...

Montanaro European Smaller Companies Trust (LON:MTE) (I hold) Quoted data research https://quoteddata.com/researc...

Seraphim Space Investment Trust (LON:SSIT) (I hold) Interesting write up by Citywire https://citywire.com/investmen...

I bought iShares MSCI Mexico Capped UCITS ETF USD (Acc) (LON:CMX1) too soon- looking at 20% loss at the moment. Long term Mexico looks promising, but there could be some further weakness. The USA/Mexico trade agreement needs to be re-signed next year so the USA elections are of significance. I am re-examining my stance and it maybe I should sell and wait to buy back in later. It is though a fairly small holding in my ISA. My concerns are also inflation which is still at the top end of the target range and currency weakness.This research from Schroders covers most of the issues. https://www.schroders.com/en-g....

Graham Wells

Anyone know anything about the below?

Hansa Investment (LON:HANA) on a large discount atm. Has some interesting holdings. One of which is (25.8% of their assets according to AIC website) Ocean Wilsons Holdings (LON:OCN) who in turn own 56% of Ocean Wilsons, who are in discussions to possibly be take over by a third party?
This situation needs some real scrutiny to see if there is an opportunity here. Does anyone have a view on this one? I heard the Hansa Investment (LON:HANA) mentioned on a podcast on Kyle Caldwell from Citywire today.
Hansa Investment (LON:HANA) also has a small stake in Pershing Square Holdings (LON:PSH) .

Graham.

28th Aug

Graham, I did look at it a six or so months ago due to holding in Ocean. Decided not to invest partly due to the Salomon family/ managers holdings, not sure if “family” interests will be the same as mine. But it is at a decent discount despite recent rise.

bullhead

Will have a good look at all the firms not ones I have heard of just run over them and note Charles points about Family interests though I have found this to be beneficial at times as seem to give firms/trusts a longer term outlook

They are doing an online presentation on the 25th September

https://hansaicl.com/

Schroders Capital Global Innovation Trust: Interim Results Webinar Schroders Capital Global Innovation Trust (LON:INOV)

Join the Portfolio Managers of the Schroders Capital Global Innovation Trust, Tim Creed and Harry Raikes, in this one hour webinar.

They will present the interim results of the Trust for the six months ended 30 June 2024.

Tuesday 1 October 2024
09:00 - 10:00

29th Aug

Has anyone looked at EJF Investments (LON:EJFI) "To generate attractive risk adjusted returns by investing in opportunities created by regulatory and structural changes impacting the financial services sector." Trades on a large discount of 41%. Performance NAV wise seems pretty poor, underperformed the AIC-Debt Structured finance sector over 5 years-5 years was 37% EJF 17%. But with a wide discount and poor performance maybe something will happen

SCI20

Tritax EuroBox (LON:EBOX) : The deadline for Brookfield Asset Management to announce a firm intention to make an offer for Tritax EuroBox plc has been extended to 23 September 2024. There can be no certainty that a firm offer will be made.

Are holders expecting much of an upside on today’s price of 66.50?

bsharman

I don't see why an offer shouldn't be close to their NAV ? I'm sanguine about it as I feel that the economics for REITS are improving and therefore if no offer is made and the price drops then it will be a chance to top up and lock in the dividend and capital appreciation in a lowering interest rate environment.

I’m happy continuing to hold Tritax EuroBox (LON:EBOX) while this supposed bid situation drags on, and on and on………

If there is eventually an offer I disagree that it could be near to NAV even though agreeing with bsharman that the economics for REITS are improving and with growing evidence the sector has bottomed. But evidence for that happening is not the same as the certainty a bidder would surely want if prepared to pay nearly the full current NAV. Happy to be wrong on this!

My guess is a take out price around 72p which is useful further upside even excluding the very good dividend yield. If there’s no bid then again agree; if the share price falls, as is likely on that news, I would buy some more as fundamentals justify the current price and not a lower price. I wouldn’t buy at the current price as other REITS have more upside potential.

CT Private Equity Trust (LON:CTPE) I sold this a few months back as share price had gone no where. This Citywire article has the joint broker suggesting a 25% upside. Stifel reckon not- due to 15.5% gearing and little firm indication of asset sales materialising any time soon. Whilst the yiled is decent at 6% not sure I will be rushing back to buy in. I am afraid I heard a few years of positive quarterly updates from the manager, but no price movement Better PE funds are available I think- I have held Oakley Capital Investments (LON:OCI), for example, for 4 plus years and has done well. https://citywire.com/investmen...

30th Aug

Charles,

Do you think Tritax Big Box REIT (LON:BBOX) will be admitted to the FTSE100 later this month and if so do you think more institutions and trackers will have to buy due to this? Or do you think they would’ve already done that in anticipation? I noticed the SP has been ticking up slightly over the last few months since taking over the smaller REIT.

Promotion to the FTSE100 seems to be between Tritax Big Box REIT (LON:BBOX) and Hiscox (LON:HSX) atm

All comments welcome.
I hold.

Graham, Looks like Burberry and Easyjet will go. Not sure if it will make a difference to BBOX to be honest, but I did sell Easyjet on the basis trackers will have to sell it- so on the same logic it should.

Bought back into Market Access STOXX China A Min Var Idx ETF EUR C (LON:M9SV) -it had dropped after I sold and saw this a short time ago "

** U.S.-listed shares of Chinese companies rise premarket trade on heavy buying from sovereign fund Huijin, and expectations of fresh stimulus for the property sector

** State-backed Central Huijin Investment boosted ownership in a handful of blue-chip ETFs, according to the fund manager's mid-year reports"

Scottish Mortgage Investment Trust (LON:SMT) 30th September 2024.

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Investment Trust- Thoughts (August 2024)

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Charles Mitchell

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