Ct Uk High Income Share Discussion Threads

[brwo349] 10/9/2024 18:47

In the context of only 32 million B shares then 250,000 is a significant purchase by the company.

[brwo349] 10/9/2024 18:22

I also picked up another 5K

Date: 10 September 2024
From: CT UK High Income Trust PLC

TRANSACTION IN OWN SHARES

The Board of CT UK High Income Trust PLC announces that on 10 September 2024 the Company purchased 250,000 B shares at a price of 86.00p per B share to be held in treasury.

[2wild] 31/8/2024 14:45

Have updated header to include capital structure, link to company website, 31st July portfolio Breakdown including top 10 holdings and 2 yearchart.

MARK5MAN what I like about IPU is the triple discount. On a sector by sector basis, UK market is trading around 20% discount to other developed markets and 40% compared to USA. UK smaller I'll trading about 15 to 20% below UK larger companies It's normally the reverse. Add current 13% discount, IPU is offering fantastic value.

[mark5man] 29/8/2024 14:38

Interesting regards IPU - it really hasn't recovered from the COVID years has it. I sold out of GSCT recently as part of a move to a more income and REIT approach (bought SOHO). GSCT is back at its 3 year price so IPU with its UK focus (UK was I think was hit harder over the last few years) is a good one to watch. Will think about it when I reach my next investment chunk as although its not HY its showing as 4% yield which isn't terrible with some TR hope from its 15% discount

[2wild] 29/8/2024 13:47

brwo349 Thanks for posting. Nice to see Analysts coming around to my way of thinking.

CHIB currently the best value equity income investment trust on offer

IPU discount noW looking very attractive again.

[brwo349] 28/8/2024 22:11

hxxps://www.trustintelligence.co.uk/investor/articles/fund-research-investor-ct-uk-high-income-retail-jul-2024/discount

Discount
David Moss became the lead portfolio manager of CHI in July 2023, and at that time, CHI was trading around a double-digit discount. Since then, the discount has narrowed. We think this is partly down to markets having digested the news of the manager change as well as the brighter economic prospects in the UK. Additionally, David has fine-tuned the portfolio since taking over and the results have, so far, led to CHI performing well against its benchmark, reducing the discount slightly. At the time of writing, CHI trades at a discount of 6.8%, narrower than its five-year average of 7.8% and wider than the Morningstar UK Equity Income sector average of 3.6%.

For CHIB, the trust’s B shares, the discount has widened slightly. Earlier this year, the board took steps to cancel the ‘Unit’ share class to simplify the overall listing structure. (Each unit comprised three ordinary shares and one B share). Shareholders of the Units now instead hold and are able to trade, the ordinary shares and B shares independently. In our view, this change has seen a preference for the income from the ordinary shares over the capital repayment from the B shares, widening the CHIB discount to 10.8%, higher than its five-year average of 6.6%. We note that if held in a tax-free ISA or pension wrapper, dividend income and capital distributions are both untaxed and so there is an opportunity for investors using those accounts to pick up a higher yield in the B shares at the moment from the same portfolio.

[brwo349] 28/8/2024 22:10

Trust intelligence looked at CHIB and CHI last month. It's a good read.

hxxps://www.trustintelligence.co.uk/investor/articles/fund-research-investor-ct-uk-high-income-retail-jul-2024

Overall, we believe CHI continues to deliver a good income for shareholders, well above the sector and index average, making it both an attractive investment for high-income hunters and potentially a complement to the more traditional UK equity income portfolio. CHI’s ordinary shares trade at a 6.8% Discount at the time of writing and the B shares at 10.8%, which we think has the potential to narrow further if David continues to outperform the index and deliver growing dividends year-on-year. The B shares look particularly cheap, and we note that a tax-free wrapper account could be particularly appealing right now.

[brwo349] 27/8/2024 12:50

Added. Nav up to 98.86p and a 6.4% yield.
Dividend announcement next month

the NAV should be over 99p tomorrow

[panshanger1] 25/8/2024 13:47

Henderson high income worth a look too

[brwo349] 20/8/2024 09:51

I added again yesterday and I have a big holding here again.

[2wild] 17/8/2024 19:51

hedge fund harry. Having been in, out and occasionally switching between all 3 classes, until recently also had units, over many years. I can say with some certainty there are 2 reasons. Poor liquidity and stupidity.

[hedge fund harry] 16/8/2024 18:18

So what's the reason CHIB trades on a 5% greater discount to NAV than CHI?
Is it a tax issue perhaps in that for CHIB one has to calculate capital gains from the dividends which are actually returns of capital.

[2wild] 16/8/2024 14:04

Also added this afternoon at 86.92p on 12% discount to yesterday's closing 98.73p nav.

Definitely the best value, UK high-income equity trust.

[brwo349] 16/8/2024 09:13

I managed to top up at 86.95p

[essentialinvestor] 15/8/2024 21:15

Hope so, added 30k today under .8650.
AGM video available on their IR site.

[brwo349] 15/8/2024 20:22

I really do think this is a bargain at this level. I was just checking the indexes and the FTSE100 and FTSE ALL shares are up over 8% since the start of the year. CHIB is only up 0.5%. You may think the portfolio shares have performed very poorly but that is not the case. The NAV has risen from under 90p. It's the discount that has risen from 5% at the start of the year to 11% now.

Compare with another UK high yielder such as AEI where the discount has remained at 5% and the AEI shares have risen nearly 7%.

I'm hoping there are still some shares available tomorrow at 87p.

[brwo349] 15/8/2024 15:28

I got some at 86.95p which is an 11.5% discount before todays gains are factored in. Happy to sit back and collect the 6.5% yield.
I also added EAT today for high yield european exposure

[mark5man] 12/8/2024 19:26

Picked up some 15K of these as I switch to income orientation for retirement. The annual report (few months old) had a credible message about repositioning the P/F for dividend growth. Plus getting nearly 10% discount on HY shares is attractive.

Anything I should watch out for other than divis?

[2wild] 31/7/2024 08:49

Picked up 5000 at 88.235p this morning. Some large gains in top 3 holdings HSBC 3.8% SHEL 2.3%, so far today. If current gains hold, could see near 100p Nav at close.

[essentialinvestor] 27/7/2024 10:52

Strong day as well tbf.

[2wild] 26/7/2024 16:15

Looks like you help nudge the offer price up 2.9% to 88.5p Essential

[essentialinvestor] 26/7/2024 14:04

I've bought over 30,000 today, split in to 2 lots.

Appreciate you highlighting.

[essentialinvestor] 26/7/2024 13:18

2wild thanks - Smurfit Westrock now btw, rather than SKG in the header - SWR

[2wild] 26/7/2024 10:29

B pay identical quarterly Dividends, as capital. ie enhanced dividend policy. About 75% are ORD 25% Bs. Sometimes B trade higher. Always identical NAV.

[essentialinvestor] 26/7/2024 09:52

B shares, non voting?.

Or there's another difference.. TIA.