tiltonboy
07 Oct 2016
Re: NAV TD,You don't need a report and accounts to find out if they have bought their own shares back, just look at the news tab on this site. To save you a job, the Trust have bought back 316,398 shares in the last 10 weeks in five separate transactions. This will have added about 0.7p to the NAV. There have been others over the years, but you can have a look if you want a fuller picture.In terms of dividends, the Trust would have to pay them out of capital profits, as their revenue is low due to where they are invested. There is increased activist interest across the sector, with SVG being the latest. Elliott have also turned up at BTEM, while activists now own over 20% of HAST, and I think will force them to do something.JPEL is the stand-out for me, and is now in liquidation mode. ATS also look good value, and they are aggressively buying back their own stock, and the managers have bought PA.Interesting times.
The Dutchman
06 Oct 2016
Re: NAV Tiltonboy, Have there been share buybacks at Herald - I didn't think so, but as all my holdings are in ISA's I don't get the Report and Accounts. In fact I'm pretty much in the dark here.I think you will find that there are a quite a few examples of IT discounts narrowing - usually in response to to 2-3 years of good performance, but then they slip back if performance slips ( Witan would be a good recent example).As a shareholder the only way of realising value is to sell some of your holdings whereas in my view it would be better if the director's of such trusts said " we will aim to make a return over the medium term of 10% pa and we will pay 8% of NAV as dividends each year.I wonder if the activists may start showing an interest here - they have done a good job at Electra where the feeling was that IT was being to be run for the benefit of the investment management team .
tiltonboy
06 Oct 2016
Re: NAV The discount to NAV is actually 20%, but still too wide for a trust that has delivered long term growth.Buying back their own shares is accretive to NAV in the first instance, but given the growth in NAV would it not have employed the capital better by investing in the market. Additionally, the discount remains wide, so buy-backs have made little difference it narrowing it.Those investing in technology would have performed better in Polar Cap, Allianz, and others which had more US exposure. The portfolio also lacks conviction, evidenced by the number of holdings.Perhaps bringing in a DCM would help, but if you look at IEM all it does is give shareholders an exit in size, despite good NAV growth. Once you trade at a discount, it seems near on impossible to get back to parity without a corporate event.In saying all this, I remain invested in HRI, and the wide discount puts me off selling. I thought the shares were fully valued at 692p, and had the discount been narrower may well have sold, but here we are at 850!If I wanted a short-term fix I would be clamouring for a DCM to be put in place, but as I'm a long term holder, it's something that I put up with. I bought on a wide discount, and I remain a holder with one.
charlus
06 Oct 2016
Re: NAV Dutchman,Good to hear someone elses thoughts on HRI. Absolutely agree that a change is required. I imagine KP, in the job 22 years, is on a handsome package and it doesn't seem to be aligned with creating shareholder value.I also thought recently about selling as I want a decent income yield from my investments, but have delayed to see it this recent run up has more steam.GLA
charlus
06 Oct 2016
NAV HRI has moved up very sharply over the past 3 months which is very welcome. But still trading at a whopping 30% discount to NAV.Anyone got any clues why the rise and why the huge discount?GLA
II Editor
20 Jan 2016
NEW ARTICLE: Model growth portfolios gain up to 8.5% in 2015 "Helping independent investors through uncertain times is among the reasons our sister magazine Money Observer set up its 12 Model Portfolios in January 2012, especially for those no longer able or willing to pay for professional advice after the ..."[link]
farmerdave
10 Mar 2015
Re: Annual Report Sansione - a lot of the ITs that I look at are hovering at 15% or so. The manager has done a good job in a growth area which is what has attracted me to invest after first noticing the discount. Started investing at start of this year after selling out of toppy other stocks like Catlin and other insurers.CheersFD
sansione
09 Mar 2015
Annual Report Just read the above. Very much a lacklustre year. Astounding that neither the Chairman nor the Investment Manager saw fit to refer to the fact that the share price continues to languish on a 20% discount to Net Asset Value - one of the highest in the investment trust sector. When is the Board going to get its head out of the sand and take some action to improve this?
