Discount Watch
We estimate the number of funds trading at year-high discounts to net assets fell by 2 to 12 last week. Alternatives still dominate the list with nine names as high bond yields continue to weigh on sentiment and share prices. But which alternative fund, seemingly a permanent fixture on the list, is no longer among the 52-week high discounters?
By Frank Buhagiar
We estimate 12 investment companies saw their share prices trade at 52-week high discounts to net assets over the course of the week ended Friday 07 February 2025 – two less than the previous week’s 14.
Headline number of 52-week high discounters may be falling, but the number of alternatives remains stuck on nine: five renewables, one infrastructure, one leasing, two from private equity/growth capital. Concerns over higher bond yields, leading to higher discount rates and lower asset valuations continuing to weigh on sentiment.
Noticeno property company among the alternatives this week. Not even the up-until-now ever-present Ceiba Investments (CBA). For weeks the Cuban-focused property company has topped the list with a discount of around 75%. Not anymore. CBA’s discount ended the week at -73%ish. Okay not a big improvement, but an improvement, nonetheless. The reason, the Company’s press release of 3 February 2025 confirming that 85% of holders of its €25m 10% senior unsecured convertible bonds due 2026 agreed to amend the payment schedule of the bond from a single €25m bullet payment due on 31 March 2026 to five equal annual instalments of €5m starting in June 2025. The new maturity date is 31 March 2029. The previously looming deadline had been weighing on the share price hence the year-high discount. Question is, can the share price kick on from here or will CBA return to the Discount Watch in the not-too-distant future?
Top five
Fund Discount Sector
Digital 9 Infrastructure DGI9-80.70%Renewables#
Ecofin US Renewables RNEW-54.90%Renewables
VH Global Energy Infrastructure ENRG-54.01%Renewables
Syncona SYNC-49.72%Healthcare
Aquila Energy Efficiency AEET-47.41%Renewables
The full list
| Fund | Discount | Sector |
|---|---|---|
| Utilico Emerging Markets UEM | -22.39% | Emerging Markets |
| Schroders British Opportunities SBO | -38.63% | Growth Capital |
| Syncona SYNC | -49.72% | Healthcare |
| Digital 9 Infrastructure DGI9 | -80.70% | Infrastructure |
| Tufton Assets SHIP | -27.01% | Leasing |
| Partners Group Private Equity PEY | -33.13% | Private Equity |
| Bluefield Solar Income BSIF | -36.02% | Renewables |
| Foresight Environmental Infrastructure FGEN | -40.59% | Renewables |
| Aquila Energy Efficiency AEET | -47.41% | Renewables |
| Ecofin US Renewables RNEW | -54.90% | Renewables |
| VH Global Energy Infrastructure ENRG | -54.01% | Renewables |
| Merchants MRCH | -5.75% | UK Equity Income |
Funds mentioned in this article:
Leave a Reply