Jpmorgan Global Converti... Share Discussion Threads

[jonwig] 09/10/2013 14:24

NAV has fallen by about 1% so far this month, and the premium seems to be evaporating.

But people will pay a premium for what they see as solid income, so I wonder how much lower versus the NAV?

[edwardt] 09/10/2013 12:03

make that 102 in a week!

[edwardt] 01/10/2013 09:50

104 here we come...

[edwardt] 23/9/2013 12:48

7 premium for a fund that can easily be replicated in open ended fund, suggest care is taken if buying now...

[40t] 04/9/2013 12:32

Useful summary in the IC, just out, covering JGCI and others - quoting 7.4% p.a. average (UBS Global Convertibles Index) from 1994 to 2012 compared with 5.3% on the MSCI World index.

[wirralowl] 24/7/2013 14:50

Premium narrowing, as NAV rises to 98.59p and price falls a little. Getting more interesting now, may be tempted to put some in my SIPP or ISA shortly (can currently buy at 102.68p).

[jonwig] 08/7/2013 08:47

Latest NAV is 96.9p (capital only) so this is a 6% premium.

A recent article (FT? IC?) highlighted strong demand for this sort of fund in a low yield environment, so the premium will probably persist. At the moment I don't feel tempted in.

[jonwig] 23/6/2013 08:48

Interesting that the daily NAV statements include:

"THE CAPITAL ONLY NET ASSET VALUE PER SHARE IN PENCE, WITH DEBT AT PAR VALUE."

So the numbers are clean of accrued income.
By "debt" they don't mean any they've taken on as gearing, as this is zero according to the Edison note, so I presume they've invested in short-term bonds (where accounting rules allow them to value at par) as they build up the convertibles portfolio.

Anyway, the first few weeks read:

11/06 ... 98.14p
18/06 ... 98.01p
25/06 ... 96.47p

The premium is getting noticeable! Will NAV volatility stay low as they become more fully invested?

EDIT: fall in NAV might itself lower the premium?

[jonwig] 18/6/2013 12:47

There is a thread already. Is it worth having two, as there won't be a great deal of traffic?

[topvest] 14/6/2013 21:31

I've been buying a few convertible unsecured loan stock issues in a couple of emerging market investment trusts this week. Low risk in choppy waters with 4/5 years to get upside exposure and very low downside risk. Capital Gearing Trust seems to be keen on these, which pointed me in the direction of these given their good record.

[jonwig] 14/6/2013 12:37

Came to this via a detailed Edison note published yesterday:

hxxp://www.edisoninvestmentresearch.com/

[Register free, if you don't know the site.]

The projected yield (around 4.5%) won't grow much but capital gains are possible with downside protection.
Seems to be more than 50% US.

Haven't bought any yet - funds at end of month!

[topvest] 13/6/2013 21:20

Yes, that's always the problem with new investment trust - only buyers! I had a go at £1 which was not too expensive, but won't chase in the after market.

BACIT and BR North American Income Trust are two others I like, but too expensive at the moment.

[rat attack] 13/6/2013 10:34

Not at a premium to nav, maybe when they are trading at discount of 10/12% to nav giving a yield of circa 5%!! Then i'll tuck some away in the sipp!!

[topvest] 11/6/2013 20:31

I bought a few of these in the IPO - anyone else interested in convertibles?

[topvest] 11/6/2013 20:29

A new thread for today's new investment company.