Suggestions for investment trusts

jimjames

Another one if you want some private equity exposure, PIN / Pantheon International

[Deleted User]

I use Mid Wynd as a BG diversifier (but watch the spread when buying) and also Martin Currie Global Portfolio Trust
I don't have region specific - I let the managers of the global funds decide where to go.

DireEmblem

The discount on PSH is currently tempting me, I'm not quite following the sentiment of its value lower than market price being as high as it is.

bowlhead99

DireEmblem said:

The discount on PSH is currently tempting me, I'm not quite following the sentiment of its value lower than market price being as high as it is.

It's been that way for a long time. While not quite a 'private equity' fund (which usually have large discounts for the illiquidity of their underlying assets) it is not very diverse and has large chunks of holdings in a relatively small number of businesses; you are not literally buying those individual businesses as you could on the market, but are buying a package of companies wrapped up in a strategy you can't control. and a management fee and a performance fee.  Closed ended fund strategies with highly concentrated portfolios do often have discounts. The discount had narrowed to about 25% between the last major report and the time of the last factsheet, and no doubt FTSE100 inclusion helps a little.

Some of the holdings are perhaps not in a great place for a new covid and post-covid world: starbucks, chipotle and burger king  / tim hortons will suffer from emptier city centres without people popping out of their offices for a morning and afternoon coffee or lunchtime snack ; Hilton suffer from a lack of business and tourist travel; Fannie Mae and Freddie Mac are looking at a longterm low interest environment with likely higher defaults, etc;  their SPAC is valued above NAV, but is a punt. And if the share prices of the businesses go up, Pershing get to take a performance fee. So one can maybe imagine why investors are not super-attracted to the portfolio, given Starbucks and Hilton and Chipotle etc are at higher share prices than they were a year ago.   

The discount is not a new thing though, and they do comment on the frustration of it (sometimes with some bemusement) in their periodic investor letters.