Investment Trust discounts have narrowed but are there still opportunities?


#1

To be able to buy an investment trust at a price less than the value of its net assets is widely regarded as one of the major advantages the sector en
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#2

Comments about Caledonia noted, but I thought they had c.11 years’ worth of revenue reserves. If that could be unleashed, would not the discount disappear?


#3

I have rather fancied a flutter on Caledonia recently. I liked the purchase of the Park holiday business and I think they have a good management team in place.

I wasn’t aware of the 11 year divi reserve though @david-penn. Might some of this have been swallowed up in the Park purchase or do they still have this?

As there is such a large family holding in the trust the discount is likely to be always larger than their peers but an improved performance will no doubt narrow this a little.


#4

I’m not sure I agree about Blackrock Latin American (BRLA) not being attractive. The time to get in to a market like that is when it’s cheap which is now.

Might go lower of course but what’s that old idiom about can’t call the bottom or the top of the market.

I’m surprised you don’t like the discounts on some of the EM trusts too @stephenpeters?

@DerekW and @david-penn I think Caledonia is one to watch.


#5

I agree with @Jose - Latin America & EM are cheap.

I like Scottish Oriental & Templeton Emerging Markets.

On a long term view you can’t lose.


#6

I’ve never heard of Tamar but it sounds interesting. I like unusual things.

I’m liking Henderson Value Trust and GLI Finance right now.

I wonder if you think the sector overall is a little bit to expensive @stephenpeters ?