Well-structured top ten portfolio:-
The top ten investments which comprised 36.6% of the investment portfolio at market as of December 31, 2023 were as follows:
NVIDIA Corporation 4.7%
TFI International Inc. 4.7%
Canadian Pacific Kansas City Limited 4.5%
Apple Inc. 3.7%
West Fraser Timber Co. Ltd. 3.5%
The Descartes Systems Group Inc. 3.3%
WSP Global Inc. 3.3%
Franco-Nevada Corporation 3.2%
Mastercard Incorporated 3.0%
Bank of Montreal 2.7% |
Very good point.
There is no simple answer.
It's easy to understand why funds which are invested in illiquid assets -which are hard to value and to realise- rightly deserve to trade at a significant discount to NAV(the so-called illiquidity premium).
But when you have a big fund like this in liquid assets with a strong manager and reasonable fees, the gaping discount is a conundrum - especially when the discount has blown out to levels wider than historical mean.
On the bright side, when the discount has blown out, as an investor/buyer you stand the chance of benefiting not just from the underlying performance of the portfolio but also hopefully/likely from the tightening of the disproportionate discount as it reverts to mean.
all imo. dyor.
qp |
I don't underatand how trusts with a large listed holding trade at such a discount. Sorry naive question but why can't they recycle their listed holdings? I suppose the discount is attributed to other holdings or something in the structure? |
Given the
-track-record,
-pedigree of management company,
-undoubted dividend history,
-size and liquidity,
the Discount-to-NAV has always seemed a bit of an anomaly to me.
all imo. dyor.
qp |
Thanks...Think I will have a bit of a top up... |
Indeed, but there is a perpetually wide discount on this trust despite impressive long term performance. Admittedly this is the widest it’s been for a long time. Normally trades in a range of 28-33 |
Is that correct 38% discount?? |
You should have quoted it, it was probably just plain incorrect. Will Barclays allow you to buy it again? |
Barclays now removed the note after budget statement. |
There is a note on Barclays to this effect - maybe anticipating changes. |
you can definitely trade it in ISA with AJBell and II. |
"Maybe it is because of changes to ISA rules to focus upon UK investments." This cannot be the reason because there has been no change to Isa rules, just a suggestion that they might be. Even then, there has been no suggestion that foreign companies will no longer be allowed.
Which broker? Sometimes brokers just don't want to deal in certain shares, particularly thinly traded ones or ones considered, 'sophisticated.' |
I have it in my ISA. |
Maybe it is because of changes to ISA rules to focus upon UK investments. |
Is this still available for ISA? I've had a message saying it is not. |
NAV has fallen by 5.5% in local currency, so the majority of the fall can be attributed to the 8 point widening in the discount |
Getting back there steadily.
Now just c. 15% beneath its 2021 all-time-highs |
ST tipped them again today. Don't be suckered into paying the wider spread offer price of 2200. They'll be down again in a few days! |
1.
Largest holding is headline-grabbing NVIDIA at 6.8% of portfolio.
2.
36.5% Discount to NAV.
Unjustified in my view
3.
Quarterly dividend solid and increasing. |
Very quiet board. Now at a 36 percent discount. Surely has to get moving soon |
No problem, just to advise, I would ask your broker how they deal with Canadian withholding tax. My broker would not get involved and 25% is deducted at source off the gross dividend before conversion. I bought via UK exchange (via Halifax)
I am sure some brokers do get some relief back for their clients. No doubt someone else on this thread maybe able to advise.
Cheers TT |
Thanks for your responses. Looks like a great purchase for the new ISA subscription in April. |
I track my news on Advfn. There is daily regulatory NAV update and contained within, it highlights the current NAV discount. |
Hi @tonytyke2. Where do you track the discount for CGI? All my normal sources have no data. |
By comparison. it looks like today we are at 28.6% discount to NAV. |
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