Relative to the USD yes, however I wanted to focus on the effect a strong pound has on UK focused trusts, namely infrastructure trusts.
I’ve noticed over the last month a notable uptick in names such as TRIG, UKW, INPP and NESF to name a few and it got me wondering whether currency has played a part here, or whether it’s all a coincidence in some shape or form.
I’ve looked through some of the annual reports searching FX and they mention it multiple times under varying sections.
What are your thoughts?
FX is irrelevant if all their assets are in the UK. FX creates extra risk and of course reward.
For me NESF (plus 4% over 1 month) and Bluefield (plus 12% over 1 month) are UK only.
On the other hand SEIT (down 2% over 1 month) and VH global (down 2.75% over 1 month) hold a lot of non UK assets.
Alas they are not the same as the first two as there is a large equity element to them so can’t be sure why they have been suffering so much.
NESF discount 28% dividend 11.79%
Bluefield discount 21% dividend 8.71%
SEIT discount 48% dividend 13%
VH global discount 47% dividend 10.46%
Again you can see how under valued the trusts with large foreign holdings are.
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