Discount Watch
We estimate the number of funds trading at year-high discounts to net assets dropped by 12 to 16 last week. Alternatives still dominate with 12 names but among the four non-alternatives – wealth preserver Ruffer (RICA). Share price hit a year-high discount on Monday 13 January but after releasing an update a few days later the discount almost halved. Was it something the investment managers said ?
By
Frank Buhagiar
We estimate there to be 16 investment companies which saw their share prices trade at 52-week high discounts to net assets over the course of the week ended Friday 17 January 2025 – 12 less than the previous week’s 28. Usual graph below but, as it’s still early days for 2025, the number of year-high discounters is shown on a rolling rather than year-to-date basis.
Big drop in the number of investment companies trading at 52-week high discounts to net assets maybe, but same old story of alternative funds dominating the list on concerns higher bond yields will lead to higher discount rates and lower asset valuations. Alternatives account for 12 of the 16 on the list, 10 of which are renewables while infrastructure and property both chip in with one fund each.
In the interests of writing about something different this week, mention in despatches goes to Ruffer (RICA). Not because the capital preservation trust traded at a year-high discount to net assets of -7.59% on Monday 13 January, but because the discount had practically halved to -4.5% just a few days later on 16 January 2024. That was the day RICA released its investment managers’ performance review.
Not that the numbers were spectacular: over the six-month period to end of December, NAV total return came in at -0.4%, share price total return +0.2%; while NAV total return for the 12 months to end of December 2024 was unchanged at 0.0% and share price total return down -0.7%. Something the investment managers said then ? Perhaps, the comment, “We currently see the elastic band which tethers prices and fundamentals as stretched taut, with the potential for an aggressive snap back” resonated with investors, especially as this could result in “a redemptive performance moment” for the fund. Or was it talk of the fund’s protective armoury ? “We do not attempt to time every market turn, but we do seek to ensure the portfolio’s protective armoury is in place when we sense moments of danger” ? Investors maybe sensing danger too.
Top five
Fund
Discount
Sector
Ceiba Investments CBA
-74.95%
Property
Ecofin US Renewables RNEW
-53.19%
Renewables
Gore Street Energy Storage GSF
-52.31%
Renewables
Aquila Energy Efficiency AEET
-46.99%
Renewables
US Solar Fund USF
-46.35%
Renewables
The full list
Fund
Discount
Sector
Ruffer RICA
-7.59%
Flexible
Biotech Growth BIOG
-15.10%
Healthcare
BBGI Global Infrastructure BBGI
-19.52%
Infrastructure
Ceiba Investments CBA
-74.95%
Property
Octopus Renewables Infrastructure ORIT
-38.96%
Renewables
Gore Street Energy Storage GSF
-52.31%
Renewables
Aquila Energy Efficiency AEET
-46.99%
Renewables
Bluefield Solar Income BSIF
-33.20%
Renewables
Ecofin US Renewables RNEW
-53.19%
Renewables
Foresight Environmental Infrastructure FGEN
-38.07%
Renewables
Foresight Solar FSFL
-38.00%
Renewables
Greencoat Renewables GRP
-30.16%
Renewables
Greencoat UK wind UKW
-23.10%
Renewables
US Solar Fund USF
-46.35%
Renewables
Oryx International OIG
-35.60%
UK Smaller Companies
Vietnam Enterprise VEIL
-24.46%
Vietnam
Funds mentioned in this article:
Ruffer Investment Company
Biotech Growth Ord
Oryx International Growth Ord
Vietnam Enterprise Ord
BBGI Global Infrastructure Ord
Aquila Energy Efficiency Trust Ord
Gore Street Energy Storage Fund Ord
Foresight Environmental Infra Ord
Foresight Solar Ord
US Solar Fund Ord
Ecofin US Renewables Infrastructure Ord
Greencoat Renewables
Greencoat UK Wind
Bluefield Solar Income Fund
Octopus Renewables Infrastructure Ord
Nice blog here Also your site loads up very fast What host are you using Can I get your affiliate link to your host I wish my site loaded up as quickly as yours lol.
I just wanted to express my gratitude for the valuable insights you provide through your blog. Your expertise shines through in every word, and I’m grateful for the opportunity to learn from you..
Thank you for the auspicious writeup It in fact was a amusement account it Look advanced to far added agreeable from you However how can we communicate.
Your blog is a beacon of light in the often murky waters of online content. Your thoughtful analysis and insightful commentary never fail to leave a lasting impression. Keep up the amazing work!.
Your blog is a true hidden gem on the internet. Your thoughtful analysis and engaging writing style set you apart from the crowd. Keep up the excellent work!.
Your ability to distill complex concepts into digestible nuggets of wisdom is truly remarkable. I always come away from your blog feeling enlightened and inspired. Keep up the phenomenal work!.
Your blog is a beacon of light in the often murky waters of online content. Your thoughtful analysis and insightful commentary never fail to leave a lasting impression. Keep up the amazing work!.
I am not sure where youre getting your info but good topic I needs to spend some time learning much more or understanding more Thanks for magnificent info I was looking for this information for my mission.
helloI really like your writing so a lot share we keep up a correspondence extra approximately your post on AOL I need an expert in this house to unravel my problem May be that is you Taking a look ahead to see you.
My brother recommended I might like this web site He was totally right This post actually made my day You cannt imagine just how much time I had spent for this information Thanks.
Hi my loved one I wish to say that this post is amazing nice written and include approximately all vital infos Id like to peer more posts like this.
Somebody essentially lend a hand to make significantly articles Id state That is the very first time I frequented your website page and up to now I surprised with the research you made to make this actual submit amazing Wonderful task.
Your blog is a beacon of light in the often murky waters of online content. Your thoughtful analysis and insightful commentary never fail to leave a lasting impression. Keep up the amazing work!.
Your blog is a constant source of inspiration for me. Your passion for your subject matter is palpable, and it’s clear that you pour your heart and soul into every post. Keep up the incredible work!.
I was recommended this website by my cousin I am not sure whether this post is written by him as nobody else know such detailed about my trouble You are amazing Thanks.
Hey there You have done a fantastic job I will certainly digg it and personally recommend to my friends Im confident theyll be benefited from this site.
Your passion for your subject matter shines through in every post. It’s clear that you genuinely care about sharing knowledge and making a positive impact on your readers. Kudos to you!.
Your blog is a beacon of light in the often murky waters of online content. Your thoughtful analysis and insightful commentary never fail to leave a lasting impression. Keep up the amazing work!.
Its like you read my mind You appear to know so much about this like you wrote the book in it or something I think that you can do with a few pics to drive the message home a little bit but other than that this is fantastic blog A great read Ill certainly be back.
you are truly a just right webmaster The site loading speed is incredible It kind of feels that youre doing any distinctive trick In addition The contents are masterwork you have done a great activity in this matter.
I do not even know how I ended up here but I thought this post was great I do not know who you are but certainly youre going to a famous blogger if you are not already Cheers.
Your blog is a beacon of light in the often murky waters of online content. Your thoughtful analysis and insightful commentary never fail to leave a lasting impression. Keep up the amazing work!.
you are in reality a just right webmaster The site loading velocity is incredible It seems that you are doing any unique trick In addition The contents are masterwork you have performed a wonderful task on this topic.
Your blog is a treasure trove of valuable insights and thought-provoking commentary. Your dedication to your craft is evident in every word you write. Keep up the fantastic work!.
Somebody essentially lend a hand to make significantly articles Id state That is the very first time I frequented your website page and up to now I surprised with the research you made to make this actual submit amazing Wonderful task.