Why does the NAV vary between USD and GBP listed fund?

Fulham_Mark

I'm confused...

This is a USD fund with a 10% discount
https://www.youinvest.co.uk/market-research/LSE:DNRG

But GBP one with same name has a 20% premium
https://www.youinvest.co.uk/market-research/LSE:INRG

Are they actually the same fund? Both are 181m USD in size but what does the discount/premium mean?

Assuming it might be something to do with the exchange rate ...
hope someone can help

System

I suspect that both are incorrect as an ETF is unlikely to trade at such a premium. According to Bloomberg, the premium is -0.18%:
https://www.bloomberg.com/quote/INRG:LN

bowlhead99

The NAV on the iShares site at 1 May 2019 in USD, was $5.88 so if the GBP version (INRG) is about £4.53 according to Morningstar, at same date, that reflects an exchange rate of about 1.3 dollars to a pound, but no significant discount or premium.

Morningstar have displayed a price of $5.24 and presumably compared their number to the published dollar NAV you see on the iShares site and said it's approx 10% discount on the USD version (DNRG). But when you look at the performance graph for DNRG you can see it's price has flatlined since 2018 at that $5.24 level. You see the same flatline on the FT website too for ticker DNRG.

I suspect what has happened is that DNRG dollar version has been discontinued in London. Your choices are to buy the GBP version listed as INRG in London, or the USD version listed as INRG in Switzerland, or the EUR version listed as INRG in Italy or as IQQH in Germany (xetra).

I wouldn't expect an ETF at a couple hundred million dollar size to have much if any discount or premium - not a double digit percentage. Perhaps a dodgy NAV feed on the GBP version, while the USD apparent discount at Morningstar is just because it's over a year old price being compared against a current NAV!

Fulham_Mark

thanks Bowlhead. that's very useful and a good explanation.