F&C Private Equity Share Discussion Threads

[skyship] 16/8/2015 10:31

The Interims later this month will confirm the Jun'15 NAV. In the meantime they've been tipped by Money Observer:

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FPEO is our new adventurous selection because its discount is slightly above average for the Private Equity fund of funds subsector and it looks well placed for growth.

Around half the trust's portfolio is in the UK, with 8 per cent in the US and the rest mainly in northern Europe. With half the holdings initiated prior to 2010, it is attractively mature, so last year's good flow of realisations should continue.

It is a slightly higher risk selection because manager Hamish Mair likes to back emerging private equity managers who are keen to 'make their mark', but this can add to the upside.

The trust is fully invested, which contrasts with many private equity managers who are struggling to deploy their assets. And it is increasing its current 24 per cent exposure to direct or co-investments, because they can be particularly rewarding.

The replacement of the trust's zero dividend preference shares with lower-cost, euro-denominated borrowings should boost returns this year. It will also help hedge the portfolio against euro weakness, which was largely responsible for foreign exchange movements lopping 4 per cent off NAV returns in 2014.

[asmodeus] 30/3/2015 10:43

All four buys this morning entered as sells.

[skyship] 11/2/2015 11:19

Hi Chris - The Prelims should be out at the end of March. If we see another 2% growth in the NAV from 268.2p to 273.6p, then at 221.5p the discount would rise from 17.4% to 19.0%. A move up to the 229p high of last Spring would take the discount back down to 16.3%.

With a projected dividend total of 10.8p, the yield today = an attractive 4.88%.

They did trigger my buying price back in December, two weeks after my last post. Decided to pass.

FPEO continues to be a slow burner. Not great value; but a solid performer. Does rather pale into insignificance against so many better performing peers (see the PE thread); but they do at least provide that yield...

[chrisgail] 11/2/2015 10:03

The time has come for these to breakout of the present price band and move onto the next level, reflecting the progress this trust steedly makes.

[skyship] 28/11/2014 12:23

At 218p these offer a 4.93% yield and an 18.7% NAV discount.

Much in the same way I read Cerrito's take on things, my view is that these are adequately priced. The way things stand I suspect would be a buyer at c210p/212p...

Elsewhere in the sector I hold JPEL, MTH, NRI, OCL & PEY.

[cerrito] 28/11/2014 11:33

Nothing really caught my eye in Q3 figures released today and good that ,with reduced FX losses of 0.5p in quarter compared to 2.5p in first half, NAV has bounced back, though has gone no where so far in 2014 despite buoyant conditions..albeit we have received 0.65p in dividends.
As an original subscriber to FPEZ got nostalgic when I was reminded that it was issued at a GRY of 8.5%.
Good that taking some of the new loan down in Euro as their FX exposure is big-remember that at 31.12.13,£149m of the £237m investments were in FX-£108m in Euro and £27m in US$ and just £3m were in FX liabilities.
Nothing here that makes me want to buy or sell and congrats to those who got in under 200p in October.
The discount does seem high given low leverage of the fund but too bad we get no info on leverage of underlying portfolio.

[cerrito] 29/5/2014 18:50

Did anyone make the AGM??
Was hoping to but could not
Have been on the website to see if there was a presentation but could not find anything.
For me nothing spectacular in the Quarterlies
If I had been at the AGM would have asked why given the pretty buoyant macro conditions NAV y-2-y March 13/14 only went up from 262 to 267..not all that much even allowing for the dividend.

[cerrito] 01/4/2014 18:36

One of the attractions of FPEO of course is its dividend which prompts the question as to by how much it is covered.
Cover seems OK-though an interesting philosophical question as to how you measure it for a company like this.
Last year cash dividends were £8.5m Total profit was £18.3m of which £17.3m was reval gains and I think we will need to wait till the annual report to see how many of these gains were realized.
An interesting question for the AGM

[cerrito] 01/4/2014 18:16

Thanks Skyship for your comments
After this afternoon's fall are realistically priced.
I am comfortable to be in these and they are a good contrast to my only other PE holding SVI.
I have always meant but never organized myself to look at the other PE companies and note your comments that there may be better value elsewhere and will try and look at JPEL.
Just looked at FPEO's figures and there was nothing very noteworthy in them..we need he detail in the annual report

[skyship] 28/3/2014 12:12

Holders will have to decide whether these figures cut the mustard. The shares certainly enjoy a premium rating to their peers. On today's rise to 233p the shares stand at a mere 13.4% discount to the 31st Dec'13 valuation. Perhaps now over-valued in the short-term:

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Financial Highlights

-- Share price total return for the year of 17.4 per cent for the Ordinary Shares.
-- NAV total return for the year of 9.9 per cent for the Ordinary Shares.
-- Total dividends of 10.58p per Ordinary Share.
-- Dividend yield of 5.1 per cent based on the year-end share price.
Chairman's Statement

Introduction

Your Company performed strongly during the year ended 31 December 2013. Its net assets at the year end were GBP197.2 million, giving a diluted net asset value ('NAV') per Ordinary Share of 269.07p. Taking into account dividends paid during the year, which total 10.29p per share, the NAV total return of the shares was 9.9 per cent. The Ordinary Share price total return over the year was 17.4 per cent. At the end of the year the Ordinary Share price was 207.50p, representing a discount to the NAV of 22.9 per cent. Since the year end the share price has increased further and the current discount to NAV is approximately 16 per cent.
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[skyship] 28/3/2014 09:23

RE my 53 above: "My one regret this year is not also holding GPE."

My new regret is selling FPEO to buy PEY! Looks from the price of FPEO that the end Dec'14 NAV will be marked quite a bit higher...& certainly needs to be to justify a price of 233p.

I baled out of PEY; but have now bought back into JPEL, which again look very good value on a 34% NAV discount. Like many others I sold @ 79.75c when they were doing a shareholder reconstruction a couple of months back. Now at 73.5c again they are looking really good value versus all their peers.

[chrisgail] 28/3/2014 08:44

After a period of sideways drift the share price has suddenly come alive. Fully justified in my opinion with plenty of investments that will be reaching the realization point at considerable premiums to declared values. I remain a long-term holder.

[ryandj2222] 17/12/2013 21:27

Thanks both....

All those look worth further investigation. I didn't realise there wa a PE thread too, thanks Skyship. Very interesting. I have held FPEo for a few years, was one of the first shares I bought, probably more out of luck than judgement, but starting to get more interested in Private equity as well as venture capital trusts nowadays.

[skyship] 17/12/2013 07:59

ryandj - of the PE trusts I track on the PE thread (link below) there are just three with what I would term a conventional dividend policy:

# FPEO - share price 209p; NAV 264p; Discount = 20.9%; Yield = 4.92%

# NBPE - share price 908cp; NAV 1249c; Discount = 27.3%; Yield = 4.52%

# PEY - share price 631cp; NAV 831c; Discount = 24.1%; Yield = 8.40%

I hold NBPE and recently switched out of FPEO and bought into PEY. This year's best performers for me have been the two liquidation plays - MTH & NRI. My one regret this year is not also holding GPE.

[cerrito] 16/12/2013 22:06

Just SVI where there is a big discount to NAV(sept NAV-497p share price 417p), energetic share buy back and quite a liquid position.
You may want to have a look at but despite all the above advantages I am for some reason reluctant to buy more

[ryandj2222] 16/12/2013 21:41

Yes I like the solid yield, slow but steady growth.

Are you invested in any other private equity funds like this?

[cerrito] 29/11/2013 09:20

Once again steady as she goes in the third quarter although NAV impacted by £ strength.
Good that they give us quarterly balance sheet figures though would have preferred cash flow statement.
With share price at 210ish and NAV at 264p, the discount is narrower than in the past but with a 5% yield is a solid if rather unexciting part of one's portfolio

[cerrito] 30/8/2013 10:10

Steady as she goes.
In the quarter NAV unchanged but a 5.07p dividend paid. Company has low gearing and not all that many commitments; too bad that as usual they give no indication of the underlying gearing of the companies they have invested in.
Note pretax profit in H1 was £9.4m almost twice the cash dividends paid of £4.8m
No intention of selling and may add in case of share price weakness.

[ryandj2222] 05/8/2013 13:10

Bit of a breakout going on at the moment.

[ryandj2222] 30/5/2013 11:58

Results seem good again.

[ryandj2222] 24/5/2013 16:18

Seems to be a lot of selling going on today with this. Most unusual doesn\'t usually move very much at all!

[cerrito] 03/4/2013 20:43

just had a good look at the prelims and as others have said looks good; in a very comfortable financial position after their realizations in 2012; seems safe and boring; plan to make the AGM

[whiteadder] 27/3/2013 09:34

A 5% yield here.An excellent long term investment.

[ryandj2222] 27/3/2013 07:33

Happy to still be holding these. Nice enough report today.

[ryandj2222] 30/1/2013 19:48

It is just the restricted voting shares that are suspended, not the ordinaries.