I have reinvested some of the proceeds of recent sales in the HSBC S&P 500 ETF (ticker: HSPX), as cash balances had increased to around 15% of the portfolio. Putting 5% of the portfolio in this S&P 500 index tracker has reduced cash to around 10%.
I have sold my entire shareholding in Investor AB (ticker: INVEA, for the non-voting A-shares), the Swedish industrial holding company, controlled by the Wallenberg family. I sold on 8 February at a price of SEK 179 per share.
I sold my entire shareholding in JP Morgan Asian Investment Trust (ticker: JAI) on 1 February at a price of 214.5p, which was a discount of around 10% to NAV. I decided to sell following the passing of the continuation resolution at the recent AGM.
New Star Investment Trust (ticker: NSI) invests globally in a diversified selection of investment funds, covering a range of asset classes, including equities, bonds, hedge funds, private equity, gold and commodities. Its primary focus is on equities, which account for around 50% of assets. The majority of its investments are in open-ended, retail funds.
I’ve added to my existing shareholding in New Star Investment Trust (ticker: NSI) on 25 January at a price of around 65.9p. This is now one of my largest positions, accounting for close to 8% of my portfolio. It is currently trading at a very attractive 40% discount to NAV. My detailed research can be found here.
Subscription shares have become popular in recent years, as a way for investment trusts to raise new capital, even if the ordinary shares are trading at a discount to net asset value. They are listed securities, similar to warrants, which give holders the option (i.e. the right, but not the obligation) to buy new ordinary shares at the subscription price up to a fixed expiry date.
I added to my existing shareholding in Impax Asian Environmental Markets subscription shares (ticker: IAES) on 18 January at a price of 2.4p, which represents a discount of over 40% to my estimated value. In total my holding in IAES represents about 1% of my overall portfolio. For a detailed research note click here.
Investment trusts have been around for a long time. The first, Foreign & Colonial, was launched in 1868 and is still in existence. According to the Association of Investment Companies, there are currently nearly 200 investment trusts (excluding VCTs and offshore trusts) with a combined market value of over £50bn. However, the sector has long been something of an investment backwater, away from the mainstream of the investment management industry. The fact that it is a sector largely neglected by mainstream investors provides the opportunity to buy assets at a significant discount to their value: price anomalies are not corrected as quickly.