Where are the bargains?

[Arborbridge]

Looking purely at a selection of my own income ITs, if I wanted to top up, where I would start?
Being contrarian in nature, I'd look at those which had fallen further over, let's say, the summer/autumn high points.

Here's a preliminary list of changes which have be approximated from the charts within the HYPTUSS - therefore no double checking, and DYOR as usual:

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Dunedin Income Growth Inv Trust        DIG   -11
Edinburgh Inv Trust                    EDIN  -5.5
Finsbury Growth and Income Trust       FGT   -6
Henderson Far East Income Ltd.         HFEL  -7
Invesco Income Growth Trust            IVI   -12
JP Morgan Global Emerging Income       JEMI  -8
Mercantile Investment Trust            MRC   -13
Merchants Trust                        MRCH  -8
Murray Income Trust                    MUT   -11
Perpetual Income and Growth Inv Trust  PLI   -10
Schroder Income Growth Fund            SCF   -10
Schroder Oriental Income Fund Ltd.     SOI   -8
Temple Bar Inv Trust                   TMPL  -4
UK dividend Aristocrats                UKDV  -10

The numbers are percentages dropped. Some trusts have altered surprisingly little Murray International being one, and I assume that is owing to sterling's fall.. City of London isn't included as the chart was not returned by HYPTUSS, however, I believe the drop is about 6%.

So the above is a shopping list for me to think about in the next few weeks.

Arb.

[doug2500]

European Assets Trust is at a decent discount, about 8% last time I looked. For the last year it's been close to par.

[Itsallaguess]

Looking purely at a selection of my own income ITs, if I wanted to top up, where I would start?
Being contrarian in nature, I'd look at those which had fallen further over, let's say, the summer/autumn high points.

Here's a preliminary list of changes which have be approximated from the charts within the HYPTUSS - therefore no double checking, and DYOR as usual:

Code: Select all

Dunedin Income Growth Inv Trust        DIG   -11
Edinburgh Inv Trust                    EDIN  -5.5
Finsbury Growth and Income Trust       FGT   -6
Henderson Far East Income Ltd.         HFEL  -7
Invesco Income Growth Trust            IVI   -12
JP Morgan Global Emerging Income       JEMI  -8
Mercantile Investment Trust            MRC   -13
Merchants Trust                        MRCH  -8
Murray Income Trust                    MUT   -11
Perpetual Income and Growth Inv Trust  PLI   -10
Schroder Income Growth Fund            SCF   -10
Schroder Oriental Income Fund Ltd.     SOI   -8
Temple Bar Inv Trust                   TMPL  -4
UK dividend Aristocrats                UKDV  -10

The numbers are percentages dropped. Some trusts have altered surprisingly little Murray International being one, and I assume that is owing to sterling's fall.. City of London isn't included as the chart was not returned by HYPTUSS, however, I believe the drop is about 6%.

So the above is a shopping list for me to think about in the next few weeks.

Arb.

Interesting list Arb, thanks for posting it.

I'm looking to start drip-feeding some accumulated dividends and capital over the next few months, having reached a cash level of around 12%. I think that's enough in terms of a safety buffer if the market takes a wobble, and any further dividends or new-capital above that level will now be drip-fed into a small number of income-IT's, high-yield shares that may have taken recent stumbles.

I've taken a look at the Digital Look 'Forecast Yields' for the IT's in your list, and have re-posted the table below with those Forecast Yields included, in case it's of interest to anyone else.

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Company Name                                Ticker      Forecast Yield   % drop
 
Dunedin Income Growth Inv Trust             DIG         4.80%            -11
Edinburgh Inv Trust                         EDIN        3.60%            -5.5
Finsbury Growth and Income Trust            FGT         1.90%            -6
Henderson Far East Income Ltd.              HFEL        6.10%            -7
Invesco Income Growth Trust                 IVI         3.80%            -12
JP Morgan Global Emerging Income            JEMI        4.40%            -8
Mercantile Investment Trust (The)           MRC         2.60%            -13
Merchants Trust                             MRCH        5.70%            -8
Murray Income Trust                         MUT         4.70%            -11
Perpetual Income and Growth Inv Trust       PLI         3.50%            -10
Schroder Income Growth Fund                 SCF         4.10%            -10
Schroder Oriental Income Fund Ltd.          SOI         3.60%            -8
Temple Bar Inv Trust                        TMPL        3.40%            -4

There's a couple there that I own already, and will likely top up to some extent, and there's a couple that I don't own that interest me, where I'll be doing a bit more research before perhaps dipping my toe into.

Thanks again for posting the list. It's always interesting to see what other people own in the income-IT arena, and finding some good value for purchase right now is something I'm keen to explore.

Cheers,

Itsallaguess

[Raptor]

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Company Name                   |  Ticker|  Current price (p)|   Yield|  Nav 
Henderson Far East Income Ltd. |  HFEL  |             326.00|   6.10%|  -0.67
Dunedin Income Growth Inv Trust|  DIG   |             236.00|   4.80%|   -8.7
Murray International Trust     |  MYI   |            1093.00|   4.30%|  -2.61
Schroder Income Growth Fund    |  SCF   |             249.00|   4.10%|  -8.83
Merchants Trust                |  MRCH  |             418.00|   5.70%|  -9.29

As I said on another topic, my recent choice was MRCH as a "top-up". The above is taken from HYPTUSS in top-up order. As there are really no forecast yields in IT we have to look at the current yield as an indication of future, the NAV's have been interesting recently too.

Interesting times, will be a while for me to build up enough cash now to think who is next though.

Raptor.

[Arborbridge]

Raptor, Itsallaguess,

I'm pleased to see you've come back and added some extra facts to my list. I did intend to come back and list yield and discounts to complete the picture, but you have done most of the work already.

Glad to have stimulated some thoughts.

Raptor - I woke up wondering about MRCH this morning (yes, I know, that's pathetic) - despite my other thread saying that it's been a bit of a failure, I'm still tempted to take a risk on adding more while the discount is so wide. So I'm interested to see you've taken the plunge.

Arb.

[gcdonaldson]

Hi, there is a website that provides current and average discounts for ITs that I occasionally use to look for bargains.

http://www.bestinvest.co.uk/investment-research/investment-companies/search/Discounts.aspx?SortDirection=ascend&Page=1&SortExpression=ZSCORE&ItemsPerPage=100

Many of the trust are smalls and I haven't heard of them, but familiar ones around the same disccount as MRCH are

Name NAV PRICE current Discount% Average Discount%
MERCHANTS TRUST 468p 418p -11 -6
LAW DEBENTURE CORPORATION 573p 497p -13 -9
STANDARD LIFE EQUITY INCOME IT 418p 385p -8 -2

Apologies for not formatting

gcdonaldson

[Arborbridge]

Useful link to bestinvest, thanks. I assume you also know about theaic.co.uk and Trustenet.com who also provide a wealth of information. It is also informative for compare the figures given on each site as they often do not agree.

BTW, I think I'm right in saying the Law Debenture has a secondary fiduciary business "tagged on" which is not included in the NAV. The discount is therefore real but won't disappear completely. However, it does seem good at present, but the yield is very low.

Arb.

[PresumingEd]

The fiduciary business is included in the NAV now, see

http://citywire.co.uk/money/law-debentu ... ng/a884828

'The board has therefore concluded that, in order to present a better understanding of the group's valuation, it should publish a fair value NAV, including the fair value of the IFS businesses and long-term borrowings.'

The discount may now be more meaningfully compared to that of other trusts with a similar remit.

[Arborbridge]

The fiduciary business is included in the NAV now,

Oh, thanks for that -I'd missed that news. That means the discount is really quite large just now - and for an IT which has been reliable, if at times volatile.


Arb.

[dlp6666]

http://www.bestinvest.co.uk/investment-research/investment-companies/search/Discounts.aspx?SortDirection=ascend&Page=1&SortExpression=ZSCORE&ItemsPerPage=100

Extremely useful link for 'IT bargain-spotting', many thanks.

I wonder if there is any share price alert website etc. that allows you to configure an email alert if a discount (or premium) falls below (or rises above) a level that the user can specify? I've had a look on HL and, of the various 'triggers' offered, that doesn't seem to be one.