Private Equity Trusts + FTG + AIC Compass + UK REITs

12th Nov '23 by ShoeShineBoy

6 comments 741 reads

I'm posting on Stockopedia now as the Michael Walters site is running down and closing at the end of December. It's very enjoyable to have a rummage around on different discussions. Would like to be able to click on a subscriber's name and get a list of their posts but that is maybe a difficult tech change for Ed and his team. What I do find useful is to adjust the filter under the "Add Comment" section to "Unthreaded" so that the latest posts are at the top. Keeps it simple for this long term, low risk investor.

Thanks to Charles Mitchell for a good post on private equity trusts. The following VoX Markets interview with Steven Tredgett of Oakley Capital (OCI) is good. The concern on PE trusts at the moment is how good are the valuations. How recent are they and how prudent are they. Key point in this discussion is around 18 minutes where Steven Tredgett talks about HGT sales at NAV. If a private equity trust can get sales away at or above NAV, then that gives confidence to the existing NAV. https://tinyurl.com/yc6tb2fv

Buying AGT allows me to access 3 themes: family run businesses, Japan (who seem to have a number of companies with lots of cash on their balance sheets plus a lack of analyst coverage) and private equity trusts (including OCI) trading at significant discounts to NAV. This is attractive to a safety first investor like me. https://tinyurl.com/y58eds9k

The FTG October Factsheet was published. Putting the following tickers [SGE,LSEG,EXPN,SDR,BRBY,REL,DGED,ULVR] into a Stockopedia portfolio gives an indication of the quality of 8 of the top 10 holdings in the trust. Gross margin % TTM ranges from 93% for Sage down to 59% for Diageo with Unilever strangely on zero (not sure why, explanations welcome). The ROCE stats are also pretty good. The constituents of this trust are high quality. This trust has been well managed for years by the manager, Nick Train. It's just a pity the board has allowed a discount to open up. They were happy to issue shares when the trust was trading at just above NAV but they don't seem interested in making significant buys to try to reduce the discount now. https://tinyurl.com/2tjrufhy

Monthly AIC Compass is available. It's sometimes very boring but there are some interesting facts and figures in the November edition: average discount on investment…

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Charles Mitchell

13th Nov '23

I have held Tritax Big Box REIT (LON:BBOX) for many years, see it as a core holding despite the ups and downs of the property sector. The AIC site is an excellent research toll- not always that inspired by Compass as well. I get the weekly SHARES from AJ Bell- which can have some interesting ideas. I was looking at the Baillie Gifford website- not the best in the sector I feel. Maybe the magazine is better.

ken mitchell

Hi ShoeShineBoy

I enjoyed reading yet another excellent and detailed post/article from you today, but how disappointing that it’s not getting the recognition or follow up it deserves.

I think this is a general Stockopedia problem with even excellent articles from Stockopedia staff getting little recognition and worthwhile follow up posts. It’s the daily brilliant small company analysis that gets all the attention with often 100 and more often worthwhile replies. It’s a shame that interest here is so narrow because it’s not going to be worth posting on Stockopedia (except on the thriving small company bulletin board) unless there’s more interest here beyond small companies.

There have been some excellent posts on Investment Trusts here including from you ShoeShineBoy to whet the appetites of anyone keen to widen beyond just small companies.

As for your question about Schroder Real Estate Investment Trust (LON:SREI) (enjoyed the Compass link you posted with that question) I’m very keen and have held for a while. Their Results are on 21st November and hopefully will reassure. Their last update to June 2023 showed NAV unchanged at 61.6p a 35% discount to current 42p share price. LTV was 36% and 7.8% dividend was covered.

I also hold Tritax EuroBox (LON:EBOX) which looks way oversold, and Supermarket Income REIT (LON:SUPR) also too cheap, and have held Aew UK Reit (LON:AEWU) and Schroder European Real Estate Investment Trust (LON:SERE) since 2020. Have just bought a very small stake in ARegional REIT (LON:RGL) but that one is just a punt. Aew UK Reit (LON:AEWU) has been the stand out performer and with 13% dividends at my buy price included is up 100% despite like all the others falling a long way from the peak. The interview in the link you posted was good!

SCI20

ShoeShineBoy, Charles & Ken. Since I have you all here on one thread I want to thank you all. In the space of a week I have learnt so much and discovered a whole new world of investment opportunities beyond small caps. I do hope you all continue to post.

Graham Wells

Hi SSB, Ken,

Nice to read your informative posts again, we're missing you on the MW site. There were some good gains today on a lot of our favourites, trusts and good high dividend paying shares! Let's hope we've turned a corner.

Good news from PHNX and a nice rise today. Not quite back to my buy price (and subsequent average down) but only about 5% off. It also had a good affect on other insurers, LGEN which I also hold. MNG also doing well atm.

I've also read the AIC compass with interest as I also hold some of your BARG suggestions Ken. SUPR, BBOX, SERE SREI, PHP, POLR, BRWM, GCP, OCI, PTAL, NCYF, VEIL, VOF.

PTAL, good Q3 update today and continually buying back shares .

OCI, recent director buying and directors hold a lot of the shares, so significant skin in the game!

One share I like the look of Ken, (from your post today) is STB. I don't have a bank in my portfolio, so have looked at this one and agree it seems at a good value price atm and is backed by a decent dividend. It had a decent tick up today. The question is when to buy? Will it keep running or will it drop back? That is the question. I'll have to watch it over the next couple of days and try to get in at the right time. Any thoughts or advice on this is welcome.

I agree with your frustration with posts on good quality value shares and trusts not getting the recognition they deserve. Small Cap' stocks are not the only game in town. Surely it's about making good/best gains (capital growth PLUS big dividends) as safely as possible, especially when in or coming out of a 'Bear Market'.

Look forward to your next posts,

Gramwell.

littledavesab

22nd Nov '23

Bookmark to come back later - is there such an option?

8th Dec '23

The above shows a dummy Folio, no transactions, added of a selection of PE funds v. FTSE All Share. I set it up just about 12 months ago. Stocks as below. Given the bad vibes around PE funds interesting.

Private Equity Trusts + FTG + AIC Compass + UK REITs

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ShoeShineBoy

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