Edinburgh Investment Share Discussion Threads

[andycapp1] 08/11/2021 19:13

Yes saw that. NAV is going great guns. I own Majedie too. Worth a look. Almost 5% yield and same manager albeit invested in a range of their funds.

[chc15] 04/11/2021 16:37

Up on the ex div day, nice.

[essentialinvestor] 01/11/2021 10:09

Was way overdue a move.

[chc15] 29/10/2021 12:49

Topped up earlier here, along with IPU

[essentialinvestor] 27/10/2021 16:59

XD for 6 pence next THursday, managed to add a small amount under £6.16

[essentialinvestor] 26/10/2021 10:53

Also gives some MCX exposure which should help growth and they can
hold a % in oversees equities.

[rcturner2] 26/10/2021 10:17

Yes I agree, it is a pretty bog standard trust, but it does what it says on the tin, it gives you exposure to decent stocks at a discount with a steady dividend.

[ec2] 26/10/2021 10:16

The way I view this IT, is that it gets you the better placed stocks in the FTSE-100, at a 10% discount and on a better yield than simply buying the index.

[essentialinvestor] 26/10/2021 09:42

Added two lots.

[rcturner2] 14/10/2021 21:38

STOCK NAME SHARES BID MARKET VALUE (GBP) % INVESTMENT PORTFOLIO
Ashtead Group PLC 1,089,932 58,681,939 4.8
Anglo American PLC 1,666,187 53,159,696 4.4
Unilever PLC 1,280,950 53,153,020 4.4
AstraZeneca PLC 628,823 51,984,797 4.3
Tesco PLC 20,801,862 48,457,938 4.0
Royal Dutch Shell PLC 3,296,802 46,807,995 3.8
NatWest Group PLC 20,552,745 41,578,203 3.4
BAE Systems PLC 6,951,977 40,043,388 3.3
Ascential PLC 8,849,215 38,228,609 3.1
Mondi PLC 1,818,758 36,302,410 3.0
Electrocomponents PLC 3,472,580 35,316,139 2.9
Weir Group PLC 2,046,672 35,274,392 2.9
Smith & Nephew PLC 2,344,887 34,270,524 2.8
Diageo PLC 957,166 34,175,612 2.8
Hays PLC 21,406,104 31,681,034 2.6
Dunelm Group PLC 2,382,168 31,539,904 2.6
Wm Morrison Supermarkets PLC 11,417,185 30,552,387 2.5
Direct Line Insurance Group PLC 8,437,218 25,109,161 2.1

[spoole5] 14/10/2021 21:28

Nice discount here. Cheap way to play the ftse

[ec2] 20/9/2021 16:13

Nibbled at a few more of these today taking advantage of the 10% discount.

[essentialinvestor] 20/9/2021 10:44

THeir gearing is going to start to bite on further market falls.

[bluemango] 11/8/2021 08:23

Nice to see Investment Manager James de Uphaugh buying over 30 grands worth of shares back on the 6th. Missed that. Good to see decent skin in the game.

[harewood1] 06/8/2021 13:15

Yes, it is curious because there are some really good calls in the underlying shares. It could just be the overhang from the value style of the previous manager which has actually started to come good anyway. Foreign investors must be looking at the UK and seeing some very cheap shares.

[andyj] 06/8/2021 09:56

Indeed and increasingly negative in a positive market to the point where the three month trend is now down.

[heialex1] 04/8/2021 07:34

Still a surprisingly large discount here...

[boystown] 02/6/2021 17:33

Master Investor - Nick Sudbury says:

Edinburgh Investment Trust’s first full year’s results under new manager James De Uphaugh show clear outperformance and a narrowing of the discount.

Edinburgh Investment Trust (LON:EDIN) had struggled for years under Invesco’s Mark Barnett, so it was no great surprise when the board appointed Majedie’s James De Uphaugh to take over last March. It was fortunate timing with the transition period coinciding with the onset of the pandemic.

In its final results for the year to 31 March, the UK equity income fund made a NAV total return of 34.8%, which was well ahead of the 26.7% recorded by the FTSE All-Share as markets recovered from their March 2020 lows. The share price return was even stronger at 46.4% due to the narrowing of the discount.

Turnover was much higher than normal at 39% as the manager re-positioned the portfolio and reacted to the rapidly changing events during the year. Significant additions included Standard Chartered and Acsential, while legacy holdings in Glaxo, Legal & General and Barrick Gold were sold or reduced to increase the pro-cyclical tilt following the development of the first vaccine last November.

Plenty of upside potential

De Uphaugh believes that the UK is rich in stocks that are exceptionally well-placed both operationally and in valuation terms. In order to take advantage he uses a flexible total return approach with the concentrated 50-stock portfolio consisting of a mix of growth, value and recovery names.

Despite the recent strong performance, many British companies continue to trade at a discount to their international peers. It is possible that the successful vaccine rollout and the fact that Brexit is now behind us could enable the valuation gap to close, but the focus continues to be on fundamental research with the aim of identifying the stocks with the greatest upside potential.

Many of the largest positions are regarded as leaders in their fields and are likely to emerge from the crisis stronger. In order to protect capital, the manager considers the potential downside risk for each holding and scales the level of investment accordingly.

New starting point for the dividend

Lots of UK companies reduced their dividends during the pandemic and because of this the board decided to rebase the fund’s underlying distribution to 24 pence per share, a level from which it should be able to achieve sustainable growth ahead of inflation. This gives the shares a prospective yield of 3.75%, which is marginally below the four percent average from the UK equity income sector.

A special dividend of 4.65 pence has also been declared in respect of the year ended 31 March. It will be paid from the revenue reserves with the ex-div date being 24 June and will maintain the annual income in line with the previous year’s so as to protect investors.

A 12-month period is too short to properly assess the performance of the new manager, but it is reassuring to see that the fund has continued to outpace the index since the end of its financial year. The broker Investec has recently issued a buy recommendation with the shares available on a 4.5% discount to NAV.

[chc15] 28/5/2021 09:46

Good results, beaten the index, special div.

[chc15] 06/5/2021 12:23

Ex div today, holding up well. Any price predictions for end year?

[arja] 16/4/2021 13:28

EC2 ,
thanks for your most helpful response a week ago and sorry for delay in thanking you .
also ,
steve3 and mozy and colonal A comments appreciated .
I see it has just broken out and more in it I guess

[ec2] 08/4/2021 21:37

The effective double discount relates firstly to the shares in the portfolio which are mostly good quality value stocks that IMO can be considered cheap and at a discount to their longer term intrinsic value. The second discount is that of the EDIN share price to NAV. The NAV discount has in fact narrowed quite a bit of late, probably down to the new manager outperforming his benchmark over the last year since taking over. If he can continue to build out a good track record, I can see the discount narrowing further and even more so if the UK market in general re-rates. This combined effect would give continued double upward benefit to the share price. The shares and the market may have got a bit ahead of themselves in the last day or so, so I put a little bit of cheap and crude downside protection on yesterday, but will take off if I see continuing upward momentum which is appearing to be the case. EDIN is my largest position having averaged in over the last year whenever the share price was below 450p coupled with at the same time the NAV discount being over 10%.

[steve3sandal] 08/4/2021 19:20

That it has underperformed for years created the discount opportunity for a new manager and investors. It’s a different and better animal IMO and I’m glad I bought in anticipation.

[colonel a] 08/4/2021 17:08

Arja,
IMO double discount usually refers to something like an IT being on a discount to its NAV, and the NAV comprising things which themselves are at a discount to their NAVs.
That might be other Trusts or, perhaps, REITs.

[mozy123] 08/4/2021 14:09

Arja - underperformed for years.