Discount Watch
This week’s Discount Watch sees another drop in the number of investment companies trading at 52-week high discounts – down three to 15 from 18.
By
Frank Buhagiar
Doceo
22 Apr, 2024
Discount Watch
We estimate there to be 15 investment companies whose discounts hit 12-month highs over the course of the week ended Friday 19 April 2024 – three less than the previous week’s 18.
For a third consecutive week, the number of investment companies trading at 52-week high discounts has fallen. At 15, the year-high discounter tally is back to where it was nearer the end of Jan/early Feb, a period when markets were priming themselves for central banks to start cutting interest rates. Fast forward to the second half of April and interest rates around the world have barely budged. What’s more, the timing of when the rate cutting cycle is forecast to begin across developed markets has been pushed out deeper into the year – cue the steady increase in funds setting new discount highs to 35+. Until these past few weeks when the number of investment companies hitting year-high discounts has more than halved.
Question is, is the close correlation between elevated interest rates/bond yields and widening discounts in the investment company space breaking down or is it just taking a pause? Time will tell.
The top-five discounters
Fund Discount Sector
LMS Capital (LMS) -70.84% Private Equity
Gresham House Energy Storage (GRID) -70.78% Renewables
Schroder European Real Estate (SERE) -42.03% Property
Apax Global Alpha (APAX) -38.16% Private Equity
Downing Renewables & Infrastructure (DORE) -37.47% Renewables
The full list
Fund Discount Debt
NB Distressed Debt (NBDD) -24.52% Debt
NB Monthly Income (NBMI) -33.33% Debt
Develop North (DVNO) -1.46% Debt
Impax Environmental Markets (IEM) -11.68% Environmental
Dunedin Enterprise (DNE) -22.30% Private Equity
Apax Global Alpha (APAX) -38.16% Private Equity
LMS Capital (LMS) -70.84% Private Equity
Schroder European Real Estate (SERE) -42.03% Property
AEW UK REIT (AEWU) -18.09% Property
Foresight Solar (FSFL) -31.29% Renewables
Octopus Renewables Infrastructure (ORIT) -36.27% Renewables
Gresham House Energy Storage (GRID) -70.78% Renewables
Downing Renewables & Infra (DORE) -37.47% Renewables
Greencoat Renewables (GRP) -27.22% Renewables
BlackRock Throgmorton (THRG) -10.99% UK Smallers
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