Big uplift today from Vishal Mega Mart's IPO. Even after allowing VMM share price falls today it should add more than 4pc to PEYs NAV.The Eur 19m in cash will hopefully allow PEY to start its share buyback program in the new year. |
Share buybacks to start in Q4?Given the low daily volumes that could give the share price a boost, and a smaller NAV boost.We should find out quite soon. |
Nice to see director Gerhard Roggemann buy a decent amount (around 188 grand's worth) on the day of dividend declaration.
Joined the board as a non-exec in March. |
And there's the first dividend declared, slightly reduced at 0.355 EUR, from 0.365. Annual 0.71 compared to 0.73.
Payable 17th June. Yield still a very healthy 6.5%. |
Due a dividend declaration here; last year was 19th April. |
Interesting results statement signalling intent to do buybacks, the quantum dependent on the prevailing discount to NAV.
Proposed name change to Partners Group Private Equity Limited, from this summer. |
NB I appreciate direct NAV comparisons over the medium term are a bit dangerous given different dividend levels. |
PEY's NAV has lagged most of the other PE trusts I monitor/own (HVPE, PIN, ICGT, APEO, and the rather exceptional OCI).
Does anyone know how up-to-date the valuations actually are?
The end Nov statement can't, surely, include up-to-date valuations on all PE holdings. Most of the others are running with End Sep (having moved from end June as recently as a the end Oct statement).
I'm hoping/assuming that there should be a pretty large uplift in NAV if we mark to market to today's date, given global msci is up 11% on end Sep and, I think, the eurofirst 300 is up maybe 8%. |
hxxps://www.edisongroup.com/research/princess-private-equity-holding-waiting-for-a-rebound-in-global-pe-deal-activity |
Update was OK, they are ticking along with not much of particular note.With the discount to NAV at around 30% it is difficult to understand why they are not repurchasing their own shares with some of the cash from distributions.It gives an immediate and risk-free boost to NAV per share. Why bother making risky new investments when you can make so much risk free?I'm not sure the incentives are right to encourage this.They last were doing this almost 10 years ago, even though discounts were lower back then. They still have the authority to do this. |
Reasonable update I thought |
As expected dividend now declared. With share price at E9.26, two dividends of E0.365 would give a yield of 7.9% |
Yes, welcome resumption of dividends, with an expected payment in June of Eur0.36 (32p). Company also to discontinue hedging against foreign currency movements. Although this will lead to a more volatile NAV, it will reduce risk to future dividend payments. Current discount to NAV is 34% and yield should be 7.5%. |
Dividend re-instated |
A healthy rise in NAV for December and January should be similarly positive. Hopefully the cash situation is being addressed and we can look forward to a 5% dividend on NAV over the next 12 months which would equate to nearly 8% at the current share price. |
Some background on the suspension of the second interim dividend
hxxps://www.edisongroup.com/edison-tv/princess-private-equity-holding-podcast-suspension-of-the-second-interim-dividend-payment |
They have always hedged, and always made it clear in the info.
It was always a reason not to hold them.
Always a liquidity problem waiting to happen.
Plenty of instances of similar messes in the investment trust world coming out of the GFC... |
Indeed, long term holder here, shocking day and very poor news handling, investor relations team need a kicking. |
whilstev - you have my profound sympathies; and I also believe you raise a very good point.
PEY seemingly sucker punched you by feeding you good news on Monday, then horrendous news just two days later.
They created a false market; and I believe you have every reason to feel aggrieved. |
Very disappointing. Only bought back in on Monday on the back of the NAV update. Feeling conned they should surely have announced this at the same time. |
I think once the dividend returns the discount will narrow again, as if they are on a 50% discount the yield will be massive. |
Certainly a surprising move; so totally endorse JT35's comment re loss of the sentiment which always placed PEY on a lower discount to others in the sector.
In her IM presentation on PIN 4weeks ago, Helen Steers (partner) said that the UK PEITs don't hedge. Well, it would seem that one did....and got hammered for doing so. |
Last time they suspended the dividend though they subsequently paid an increased dividend when it was resumed.
I think the hedge is against translational loss on investments outside it's functional currency, so the other side of the hedging loss is gain on translating dollar investments into Euros. However that gain is only realised when the investment is liquidated. |
Now they have suspended divs in 2 out of the last 3 years the premium afforded to them by the market over other PE trusts will be forever lost I feel so with the likes of PIN and HVPE on 50% discounts there's no reason for anyone to buy this where mgmt is clearly questionable. |
Not sure it's an absolute loss on the currency hedges but rather a cash flow issue , the whole point of a hedge is well to hedge so I would assume they are having to pay margin out now on the hedge which will come back in due course thus no actual loss. Either way though to have it effect the ability to pay a dividend that is part of your core policy shows poor quality of management IMO |
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