I have recently increased my position in the subscription shares of the Impax Asian Environmental Markets investment trust (ticker: IAES), having sold part of my shareholding in March (see here and for my earlier research here). My most recent purchase was on 14 May at a price of 5.95p. The decision to increase my shareholding followed the announcement on 1 May of plans to wind up the trust. This fundamentally changes the nature of the subscription shares, although it also provides an attractive, short-term investment opportunity.
I initiated a position in Henderson Value Trust (ticker: HVTR) on 11 April at a price of 244p per share. The price represents a discount of around 18% to its NAV. The trust has rcently changed its manager (previously it was known as SVM Global). The new position accounts for slightly less than 4% of my portfolio. I plan to write a detailed research post in the near future.
Yesterday, I added to my shareholding in Renn Universal Growth Trust (ticker: RUG) at 236p per share, representing a discount of around 28% to NAV. It now accounts for just over 3% of my portfolio. In addition, the trust recently sent a circular to shareholders, ahead of a General Meeting on 17 April seeking shareholder approval for the proposed winding-up of the trust.
I sold the remainder of my shareholding in Manchester & London Investment Trust (ticker: MNL) on 5 April at 335p per share. The discount had narrowed to around 11% from 18% when I last added to the position in August. Following the sale, 13% of my portfolio is in cash, so, whilst I am comfortable with cash at this level for a short time, I am keen to find some new investment opportunities.
I sold my entire shareholding in Herald Investment Trust (ticker: HRI) on 4 April. The sale price of 575p represented a discount of around 14% to NAV, which is about the lowest its been for the trust in the last few years. I had bought the shareholding around a year ago at a discount of around 20%. I was also keen to reduce my exposure to smaller companies, given that three of my other holdings are specialist smaller companies trusts.
I recently bought shares in Henderson Land (ticker: 12 HK), the Hong Kong-listed property and holding company. Prices of both residential and commercial property in Hong Kong have more than doubled since their low point during the financial crisis, fuelled by low interest rates and demand from mainland Chinese investors. Talk of a possible property bubble started in 2010, since when prices have continued to rise sharply. On the face of it, this might not seem the best time to be buying into the Hong Kong property sector. Nonetheless, in my view, Henderson Land would represent a bargain even if property prices fall substantially.
I added to my shareholding in British Empire Securities (ticker: BTEM) on 28 March at a price of 497p. The discount had widened to around 14%, which is about as high as its been for a number of years. I have increased my position size from 3.4% to 5.5% of my portfolio.
I initiated a new position in BlackRock New Energy Investment Trust (ticker: BRNE) on 26 March at 38.4p per share. The shares are currently trading at a relatively modest 10% discount to NAV. However, the trust is committed to putting forward proposals at next February’s AGM, which will give shareholders the option of a cash exit at NAV (less costs). The holding represents just over 3% of the portfolio. I will post detailed research in the near future.
I sold the remainder of my shareholding in Aberforth Smaller Companies Trust (ticker: ASL) on 25 March at a price of 823p per share, as the discount had narrowed to around 10%. I had sold part of my shareholding at the end of February, after initiating a position in Aberforth Geared Income Trust (ticker: AGIT). I have kept my shareholding in AGIT, which accounts for 4.4% of the portfolio.
RENN Universal Growth Investment Trust (ticker: RUG) is a UK-listed fund, which invests in small-cap US companies (including non-US companies listed in the US). The trust recently announced plans to wind-up the fund. Whilst it is a high risk investment, I think there is sufficient potential upside and margin of safety to merit investing. I have just bought a small position in RUG at 238p.