Investment trusts bargains

This will mainly revolve round IT with big discounts.
Before offering your pennyworth remember that some deserve to be at discount although definitely not all.
Well worth checking there normally discounts.
For instance in the private equity sector discounts can be the norm for some.
For instance pantheon international is on 41% discount but I see it’s normally on 20% discount.
On the other hand 3i is presently at par but normally trades on a 20% plus premium. 45% premium 6 years ago.
So your views on individual investment trusts and sectors. Which is a bargain in your opinion?

My starter is a country Vietnam. The discounts are still high. the stock market fell significantly.
Growth is about 7 percent inflation 4%. Silly fall.
Vietnam is in classed as frontier if it should be moved into the emerging market sector prices will inevitably rise.

freetrade will only allow investment in one of 3 Vietnam investment trusts.
Some would say there are to many Vietnam investment trusts and they are to big.
So a supply and demand problem.

I still think it is a good investment based on growth prospects for Vietnam. Normally around 6% a year.
Also it has a lot of internal demand.
Companies are moving there to avoid the Chinese problems. That includes Chinese companies.


Are you ok with single country ones and not something like Blackrock Frontiers?


Outside of the US and UK, I try to avoid country-specific funds in favour of global or regional ones.

I got lucky selling a China growth trust at a double-digit premium in 2020 then watched as its share price fell 65% and it swung to a wide discount.

That’s made me wary of the political and regulatory risks that come with single-country trusts, particularly in emerging and frontier markets.

Tempting as it can be to buy funds covering countries like China, India and Vietnam, I’m sticking with PHI for broad exposure to the Asia Pacific region.

Some of the property, infrastructure and renewables trusts look relatively cheap. I’ve bagged some TRY and IEM over the past few months at fair prices and decent discounts.

DGI9 and GSF are on my radar but they’re probably too exotic for my tastes.


I have no problems with single country trusts. I am “risk on” for the next 4 years possible longer. I have £314 state and disability pension the latter isnt taxable. It’s more than adequate amount for me to live on.
So I see no problems with taking risks.
In fact in the present market I think you would be foolish not to.
The extreme volatility is throwing up bargains constantly.
Private equity is still in the bargain basement.

Pollen street and biopharma for tax free dividends using the £5,000 starter savings tax allowance.
Pollen street investment trust presently on 14% dividend a product of a merger which will result in a lower dividend about 11%. Interest rates increases will push up its returns but only marginally. Debt sectors of investment trusts require a complexity premium. This merger has led to an extremely complex company. Resulting in a 45% discount.
Biopharma lends to pharmaceutical companies it will be getting a higher returns in the medium term from its loans. But it only trades on 5% discount and a 7% dividend…not very complex?

As an aside is Oakley capital available on freetrade. Can’t seem to find it,?

Hopefully you didn’t buy DGI9?

I decided last night to buy it’s equivalent cordiant digital.

DGI9 down 30% at the moment, of course that could be considered overdone but its debt is one of its major problems and that won’t go away anytime soon.

Cordiant down 2% that could just be the market. Either way might use dividends for that or more SOHO


(Sharecast News) - FTSE 250-listed Digital 9 Infrastructure has decided to scrap its second-quarter dividend after a tough first half, as it continues to look for investment partners in its Verne Global data centres in Iceland, Finland and the UK.
The company, which invests in subsea fibre systems and data centres, swung to a loss of 6.63p per share in the six months to 30 June, compared with earnings of 3.43p a year earlier.

D9’s IFRS net asset value stood at £866m, down from £950m a year earlier, as it was hit by adverse foreign exchange movements and higher interest rates.

As such, the company reported a pre-tax loss of £57m, compared with a profit of £27m previously, due to property valuation movements.

“Whilst cognisant of the dividend target set out at IPO, the high interest rate environment and therefore the critical importance of prioritising liquidity and sustainable balance sheet management have compelled the board to not declare the Q2 2023 dividend and withdraw the dividend target for the year,” said chair Phil Jordan. “In light of this, the board will be commencing a formal consultation with shareholders.”

Meanwhile, D9 said it has “significantly progressed the syndication” of Verne Global, and has received “several” offers to either a co-controlling or majority stake in the business.

Due to sustained and accelerated customer demand for its facilities, the growth capital expenditure pipeline for Verne Global has jumped from £493m in January to £610m.

D9 said it is looking to use any funds from a Verne Global stake sale to pay down a significant portion of the its drawn revolving credit facility and cancel part of it, thereby reducing costs. At 30 June, some £356m was drawn under the £375m RCF.

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Thankfully, I decided against. I dodged a bullet with the energy storage trusts too. The adage of ‘if in doubt, do nowt’ continues to serve me well.

As I understand it, CORD is in a much better position.

One trust I think is entering bargain territory is IEM. It’s about 40% off its high and currently trading at a 10% discount to NAV. There may be more volatility to come but this trust has an outstanding long-term record, so I’m going to keep adding to my position.