Investment Trust- Thoughts (June 2024)

2nd Jun by Charles Mitchell

154 comments 5229 reads

Investment Trust- Thoughts (June 2024)

For more information on Investment trusts visit:

Association of Investment Companies.

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

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

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

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

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

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

Plenty of performance data on that site.

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

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

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

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

May 2024 Investment Trust monthly performance.

Equity invested only.

Top 10

Foresight Sustainable Forestry (LON:FSF) +44.3% received a bid

Oryx International Growth Fund (LON:OIG) +18.6%

Molten Ventures (LON:GROW) +18.6%

Rockwood Strategic (LON:RKW) +15.8%

Crystal Amber Fund (LON:CRS) +14%

Manchester And London Investment Trust (LON:MNL) +13.7%

Henderson Opportunities Trust (LON:HOT) +12.8%

Chelverton UK Dividend Trust (LON:SDV) +12%

Henderson Smaller Companies Investment Trust (LON:HSL) +11.8%

River and Mercantile UK Micro Cap Investment (LON:RMMC) +11%

Bottom 10

India Capital Growth Fund (LON:IGC) -8.8%

RIT Capital Partners (LON:RCP) -7%

Schiehallion Fund (LON:MNTN) -5.8%

Pacific Horizon Investment Trust (LON:PHI) -3.3%

Hipgnosis Songs Fund (LON:SONG) -3.3%

Blackrock Latin American Investment Trust (LON:BRLA) -3.2%

CC Japan Income and Growth Trust (LON:CCJI) -3.1%

Baillie Gifford Shin Nippon (LON:BGS) -3%

Jpmorgan Japan Small Cap Growth & Income (LON:JPSS) -2.6%

JPmorgan Emerging Markets Investment Trust (LON:JMG) .

All funds.

Top 5.

Foresight Sustainable Forestry (LON:FSF) +44.3%

Hydrogenone Capital Growth (LON:HGEN) +20.6%

NB Global Monthly Income Fund (LON:NBMI) +19.6%

Oryx International Growth Fund (LON:OIG) +18.6%

Molten Ventures (LON:GROW) +18.6%

Bottom 5

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Charles Mitchell

26th Jun

Bsharman- Enjoyed the Augmentum Fintech (LON:AUGM) presentation- Tim as usual came across well. I am considering increasing my holding.

Thu 7:31am

Henderson Far East Income (LON:HFEL) Here is the link to the ShareSoc webinar on the Janus Henderson website. https://www.janushenderson.com...

Thu 1:37pm

Regional REIT (LON:RGL) are having a rights issue of 15 new for every 7 held at 10p per new share. I have calculated that on my purchase price of 29p if I subscribe in full my new cost will be just over 16p. Or if I can sell the rights at 5p it would reduce my cost to just over 18p. I have not read the prospectus yet, but these are my rough workings and assume there will be a market for the rights. If my figures are wrong please do correct me.

ken mitchell

Thu 5:11pm

I think your figures are correct Charles. A case for selling the rights ….but is this a rights issue or just an open offer? if unsure what to do just selling around 14p now might work best. . A risk with forthcoming share consolidation is that for a while, with indigestion following so many new shares in issue, that the share price soon falls below the consolidation price? And good chance the share could fall right now as why is it still nearly 15p?

I can’t fathom why the share price soared from 14p in March to 26p (far better than the much higher quality REITS I hold!) since it was so obvious that they couldn’t afford to pay the bond and it would be necessary to raise money.

Good luck to everyone holding with your decision making. I might be tempted to buy a few post the open offer if the share price falls significantly while the new shares are getting absorbed.

Thu 5:23pm

Thanks Ken, I took a bad punt. AJ bell appeared to say I would have rights- but I am not convinced. Plus the consolidation going on. Maybe the underwriter will end up with a large enough stake to just take it private at 5% below NAV. The dream end to this sorry saga.

Thu 5:29pm

Charles. Thanks. I’ve edited and added to my post after checking their update again. Hope your dream comes true…….it’s not impossible.

Thu 6:38pm

Hi Turbo, It is trading on a small discount to NAV- so can see no reason it will increase in price other than following the market if it goes up.

Thu 6:52pm

I do assume Steve Morgan has a plan- does not seem a casual investor https://bridgemere-group.co.uk...

Fri 7:36am

Augmentum Fintech (LON:AUGM) (I hold) One image from the presentation summed up the opportunity in the Fintech space.

OldSchool05

Fri 12:38pm

Oakley Capital Investments (LON:OCI) announced a disposal of a top 5 holding this morning:

"Oakley Capital Fund IV² ("Fund IV") has reached an agreement to sell its stake in idealista, southern Europe's leading online real estate classifieds platform.

OCI's look-through share of proceeds is anticipated to be c.£70 million, reflecting its valuation as at 31 March 2024."

I looked back at how this has performed under Oakley Capital Investments (LON:OCI) ownership:

> Purchased for £43m in January 2021.

> Marked up by end of December 2021 to £58.3m, a bold 35% increase in first few months of ownership. Since then it has grown more slowly:

> December 2022 - £59.7m

> December 2023 - £67.8m

I don't quite see how they state this is a money multiple exit of 2.1x. Suspect that would be explained by the net impact of their performance fees.

Nonetheless, it is good to see that they can realise large positions at NAV. This is around 5.7% of NAV, but a much bigger proportion of the market capitalisation of 8% given the ongoing discount.

That will give them a decent chunk of additional capital to reinvest. At a time where some PE firms have struggled to turn over their portfolio (e.g. Harbourvest Global Private Equity (LON:HVPE) ) I have decent confidence in the board of Oakley.

I'm happy to be invested here.

Fri 12:46pm

Totally agree with you Old School. OCI is one of my longest held investments- I have top-sliced a couple of times. Not looked at the disposal figures yet but agree how can they say 2.1 based on the figures you mention.

Cricketfan

Fri 6:13pm

Charles, I came upon this really excellent thread by chance. This is just to say thank you and all posters for a fascinating read. I now need to do some homework to absorb all the info.

Sat 8:14am

Thank you Cricket fan. Assuming you love cricket welcome- I am off to see England women v. New Zealand on Weds at Bristol. Hopefully better than End men in the world cup- though T20 is dubiously cricket but can be fun if you go with newbies to the sport.

Sat 8:33am

Pleased to see you’ve discovered this thread Cricketfan. It’s getting more recognition but I guess there would be many more readers and contributors to it, if only they knew it existed.

There are some very useful links in the header article written by Charles Mitchell, including to Citywire a where it’s well worth registering to get their articles, including this excellent weekly one which includes the biggest weekly winners and losers and also a list of “cheap” Trusts where the discount widened and “expensive” Trusts where the discount narrowed. There are so many Trusts on undeserved too big discounts:-

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

pka

Sat 9:28am

Hi Ken, You wrote:

The Citywire article states:

"Just to recap, the Z-scores in our last two tables are a measure used by analysts to put discounts (when investment company shares trade below net asset value) and premiums (when they trade above NAV) into the context of the previous 12 months.
Essentially, they highlight when an investment company trades significantly outside its normal one-year range. An investment company with a Z-score of -2 or lower is considered ‘cheap’, while a score of 2 or more is viewed as ‘expensive’."

Is there any evidence that a policy of buying investment trusts with a Z-score of -2 or lower would have led to better than average performance in the past? I have been reading these Citywire articles for a long time, and I have the suspicion that many of the ITs they highlighted as being 'cheap' in their weekly lists have continued to do badly in their share prices in subsequent months. This is particularly the case for ITs that had been on premiums to NAV for many years and then go out of fashion, leading to the premiums gradually becoming large discounts; when their premiums start to reduce, Citywire would consider to be 'cheap' because their Z-scores would be negative, but their share prices would continue to decline as their premiums turn into discounts.

Sun 10:10am

PKA- I ignore the Citywire tables .

Sun 6:53pm

Cricket fan.

Since you found the Investment Trust thread by accident and in case you or anyone else doesn’t know this; Charles starts a new Investment Trust thread at the start of a new month.

Here’s the link for that new July Investment Trust thread:-

https://www.stockopedia.com/co...

Sun 6:57pm

Like Charles I don’t take any notice of the Z scores. I just use those Citywire lists of weekly biggest winners and new list of cheap Trusts to check out if any I’m not already holding or monitoring might be worth checking out.

Daz3

Mon 6:51am

Thanks for the reply Ken, your comment on the retail park being described as industrial is a very good spot and highlights that management are not being totally honest, something which also applies to the claim that the dividend is 95% covered including proceeds from disposals, which is of course capital

Indie

Mon 1:25pm

Big thanks, ken mitchell, littledavesab, pka and ShoeShineBoy for your replies on AVI Global Trust (LON:AGT).

Looking forward to July's discussions.

Investment Trust- Thoughts (June 2024)

Investment Trust- Thoughts (June 2024)

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Charles Mitchell

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