Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a588919

Investment Trusts: discount master looks to Europe for value

Peter Walls, manager of the Unicorn Mastertrust, explains how deeply discounted investment trusts can provide buying opportunities in places like Europe.

 

Walls continues: ‘Private equity funds are heavily discounted by the market, despite the fact that the trust has done pretty well in very difficult market conditions and the quality of the management team is undoubted. There are a number of things within the portfolio we can see quite significant upside on and I’m getting my exposure to this fund on a decent discount to net asset value.’

However, one of his holdings is in John Pennick’s British Empire trust, which is trading at a discount of 8.4% and has lost 16% of its net asset value total returns over the past twelve months.

Walls explains: ‘It has sort of lost its sparkle. On a look through basis you could argue that the discount that you’re buying into British Empire is very attractive at the moment. Last year wasn’t great for asset backed value plays and obviously the European problems compounded that.’

Caledonia [another investment trust] is a big shareholder. They’ve been letting some shares go in that so there has been a bit of extra supply in the market so the discount has widened as well. For some the jury is out but I continue to take comfort from the fact you’ve got a double discount there and when sentiment improves I think that discount can tighten up again so I’m sticking with it for now.’

Sign in / register to view full article on one page

2 comments so far. Why not have your say?

Antonio VIvaldi

May 15, 2012 at 08:27

This counts as expert analysis does it? How about licking your finger, sticking it up in the wind and saying "hmmmmmm"?

report this

John Osborne

May 16, 2012 at 19:59

Caelainn, Thanks for reporting this. Peter Walls usually knows what he is talking about. In my opinion, his views are far more valuable than some well known over-rated retail fund group manager just pumping up his (often underperforming) fund.

We do not necessarily agree in the short-term with all his choices, but his job is to follow the sector and spot value and performance so always interesting to hear what he looking at, buying and thinking about.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Look up the funds

  • Unicorn Mastertrust B Income
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the investment trusts

  • British Empire Securities (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Fidelity European Values (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Jupiter European Opportunities (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Acorn Income Fund (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • North Atlantic Smaller Cos (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • BH Global GBP (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Caledonia Investments (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Foreign & Colonial Investment Trust (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Alliance Trust (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Electra Private Equity (Spl) (Ord Income)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Independent (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Peter Walls
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Ruffer: we do badly before a market crash

by James Phillipps on Sep 29, 2014 at 07:33

Sorry, this link is not
quite ready yet