What do you think Paul...stick or twist. Looks like you can roll 50% of your stake into the new vehicle with the new shares having a larger weighting to existing. There must be plenty more value in the tank for the trust to be taken out.
I do feel though that these trusts do not run for the private investor. They could of had a tender offer, bought back shares more heavily, increased dividends, etc. I'm up 15% + dividends for 3 years. Think i also bought back in earlier this year so my 15% could have been less if stuck with original. Could of stuck the capital in cash but at least my cash lives to fight another day!
As an alternative to the Cash Offer, Eligible Scheme Shareholders (being those Scheme Shareholders who are not Restricted Shareholders) may elect to participate in an unlisted share alternative in respect of some or all of their Scheme Shares.
It will become very illiquid! To be honest I'm not sure i would have stayed invested but it would seem sales of assets can't be far away and someone else will be taking the profits.
Apax, down 22% total return over 1 year, is certainly a laggard compared to Pantheon International (PIN), down 9% or HarbourVest (HVPE), up 3%. All are on about a 41% discount. If one thinks these type of Trusts are going to recover, what makes APEX worse? At least it's paying over 9% dividend, unlike the others.
This had perked up to £1.20 but has slipped back. All the solar ITs seem to have done similar like FGEN. I think interest rates cuts look less certain in UK (10 year gilt are running higher) so the discount rates will stay high. I wonder if investors were banking on cuts and were starting to chase up the shares.
Interestingly though the infra ITs have had a good run, SEQI, HICL which i would have thought also would be rate dependant unless investors are thinking physical assets will be good inflation hedges like airports, bridges, toll roads etc.
If DJT gets this spending bill past precious metal miners are going to the moon along with any other company that has pricing power, good moats etc.
There is something ironic when depressed asset prices are due to a mark-to-market to the risk-free rate when the risk of the risk-free rate (and its sustainability) is itself being questioned.
That seems to be an opportunity for said assets.
I believe there are strong deflationary aspects alongside other inflationary aspects so it’s not a clear-cut picture i.e. the strength of the US economy evidenced by strong jobs reports (including last Friday) and April 2025 inflation in the US was 2.3%!
Some say $40 oil is on the cards. That will be incredibly deflationary for the world.
For the UK the Non-Dom exodus might be prove to be highly deflationary too.
I'm at the point where I should probably just sell the enviro trusts at a loss and reinvest into gold stocks for the rest of the year. I'll probably have made back the losses by year end.
In the UK if the government could force 50% cuts in energy costs and stimulate competition between the suppliers then this alone would probably be a massive stimulant to UK economy and be a great disinflationary force along side low oil. It might actually stimulate some "real" GDP growth not public sector non job growth.
The British Gas boss saying we need even higher energy prices is living in cuckoo land. Unfortunately Labour are probably listening to him. Can't remember if was you OB but Centrica make a shed load of money from "energy trading" no doubt shifting money from BG to Centrica so it doesn't look like over charging.
Any thoughts on Drax? I know its hated but PE of 5 and unlikely to be shutdown as is near 10% of UK power generation. I'm probably late to this but pays 4% and buy backs complete with a low PE. My investment thought of the weekend!
Ah well, another one bites the dust. Recommended cash offer of €1.90.
https://www.londonstockexchange.com/news-article/market-news/recommended-acquisition/17144492
What do you think Paul...stick or twist. Looks like you can roll 50% of your stake into the new vehicle with the new shares having a larger weighting to existing. There must be plenty more value in the tank for the trust to be taken out.
I do feel though that these trusts do not run for the private investor. They could of had a tender offer, bought back shares more heavily, increased dividends, etc. I'm up 15% + dividends for 3 years. Think i also bought back in earlier this year so my 15% could have been less if stuck with original. Could of stuck the capital in cash but at least my cash lives to fight another day!
I think you can only keep it in an unlisted vehicle so not available to us really.
ah i see...
As an alternative to the Cash Offer, Eligible Scheme Shareholders (being those Scheme Shareholders who are not Restricted Shareholders) may elect to participate in an unlisted share alternative in respect of some or all of their Scheme Shares.
It will become very illiquid! To be honest I'm not sure i would have stayed invested but it would seem sales of assets can't be far away and someone else will be taking the profits.
Yes, annoying. I am 30% up, mind.
This has seemingly re-rated quickly to £1.40 and I'm back to where i started 3 or so years back!
I spoke too soon OB - some sort of takeover announced. Up 18% today. As per wise investors the reward is in the waiting!
Apax, down 22% total return over 1 year, is certainly a laggard compared to Pantheon International (PIN), down 9% or HarbourVest (HVPE), up 3%. All are on about a 41% discount. If one thinks these type of Trusts are going to recover, what makes APEX worse? At least it's paying over 9% dividend, unlike the others.
This had perked up to £1.20 but has slipped back. All the solar ITs seem to have done similar like FGEN. I think interest rates cuts look less certain in UK (10 year gilt are running higher) so the discount rates will stay high. I wonder if investors were banking on cuts and were starting to chase up the shares.
Interestingly though the infra ITs have had a good run, SEQI, HICL which i would have thought also would be rate dependant unless investors are thinking physical assets will be good inflation hedges like airports, bridges, toll roads etc.
If DJT gets this spending bill past precious metal miners are going to the moon along with any other company that has pricing power, good moats etc.
There is something ironic when depressed asset prices are due to a mark-to-market to the risk-free rate when the risk of the risk-free rate (and its sustainability) is itself being questioned.
That seems to be an opportunity for said assets.
I believe there are strong deflationary aspects alongside other inflationary aspects so it’s not a clear-cut picture i.e. the strength of the US economy evidenced by strong jobs reports (including last Friday) and April 2025 inflation in the US was 2.3%!
Some say $40 oil is on the cards. That will be incredibly deflationary for the world.
For the UK the Non-Dom exodus might be prove to be highly deflationary too.
So a complex picture.
OB
I'm at the point where I should probably just sell the enviro trusts at a loss and reinvest into gold stocks for the rest of the year. I'll probably have made back the losses by year end.
In the UK if the government could force 50% cuts in energy costs and stimulate competition between the suppliers then this alone would probably be a massive stimulant to UK economy and be a great disinflationary force along side low oil. It might actually stimulate some "real" GDP growth not public sector non job growth.
The British Gas boss saying we need even higher energy prices is living in cuckoo land. Unfortunately Labour are probably listening to him. Can't remember if was you OB but Centrica make a shed load of money from "energy trading" no doubt shifting money from BG to Centrica so it doesn't look like over charging.
Any thoughts on Drax? I know its hated but PE of 5 and unlikely to be shutdown as is near 10% of UK power generation. I'm probably late to this but pays 4% and buy backs complete with a low PE. My investment thought of the weekend!