The views expressed in this article are those of its author and not necessarily those of ShareSoc.
Should Investment Trusts (including VCTs) base their fees on market cap and not Net Asset Value?
In the case of of Chrysalis Investments (CHRY), the 58% discount to NAV means the 0.77% fees as a % of NAV are in excess of 1.5% of market cap, which in my opinion is egregious:
A story in Investment Week "Chrysalis managers stand by unlisted holdings" https://www.investmentweek.co.uk/4055056/ also highlighted the ...
The proposed wind-up of the £40.7m Rockwood Realisation investment trust – formerly called Gresham House Strategic – has been overturned following its annual general meeting on 25 April 2022.
More than 95% of shareholders voted for proposed changes in the investment strategy to take place as opposed to a wind-up of the trust, despite Gresham House calling for a managed two-year wind-down of the vehicle and for the initial return of capital via a B share scheme at the end of last ...
by ShareSoc Director Cliff Weight. These are my views and not necessarily those of ShareSoc.
Readers may recall my blog in Oct 2020 about investment trusts discounts and what to do about them https://www.sharesoc.org/blog/collective-investments/investment-trust-discounts-what-to-do-about-them-and-sec-example/
On Friday 28 May 2021, SEC announced their new plan to help reduce their discount, https://www.londonstockexchange.com/news-article/SEC/contingent-tender-offers/14995537 :
2022 Contingent Tender
The Board has determined to put in place a contingent tender offer in 2022, should the ordinary shares trade at a wider than average discount of 8 per cent. over the ...
SEC still has a 20% discount (258p share price versus 312p NAV) and the Directors own pitifully few shares so have little skin in the game and no incentive to sort this out.
I have registered my protest vote, via interactive investors' excellent voting platform (NOTE TO HARGREAVES LANSDOWN - you really ought to provide a better voting service to your customers). I think my vote is a protest vote as it looks likely the directors will win. Other shareholders should consider ...
by Cliff Weight, ShareSoc Director
Please note the views expressed in this blog are my personal ones. I hold shares in SEC and Gresham House.
Within 6 months of manager change and change of lead fund manager and break on SLA marketing JV, the largest shareholder puts stock into hands of an arb. What will happen next?
The background is in my 2 previous blogs:
https://www.sharesoc.org/blog/collective-investments/investment-trust-discounts-what-to-do-about-them-and-sec-example/
https://www.sharesoc.org/blog/collective-investments/nearly-20-vote-against-strategic-equity-capitalsec-agm-resolution/
RIT recently sold its 13% holding in SEC at a discount, of 22.8% - 9.47m shares traded at 202.5p on17th ...
In this article, I argue that discounts are bad for those invested in a trust, and the Board of the investment trust should look to reduce any discount. However, for those thinking of investing in the trust the discount might be an opportunity. The question is, how real is that opportunity or is it just a 'value trap'?
We look at why discounts can arise and the measures that can be taken to eliminate them or even move the trust to a ...
The AIC issued a press release today saying the average investment company discount was now 3.4% - a record low since the figures were first recorded in 1970. The AIC (Association of Investment Companies) represents investment companies such as investment trusts so you can see why they would want to fanfare this figure. Investors in such trusts generally welcome a narrowing of discounts (net asset value versus share price) although it no longer means they can buy the underlying assets on ...
