Sorry no, I am cashing up till the end of year (famous last words). I will admit there is a lot of ifs and buts out there resulting in bargains for shrewd investors, I can just see myself needing extra funds next year and I don’t want to sell in the current market.
If I reach my cash target, I may buy more. That would likely be CHRY, UKW and possibly GRID but need to research.
The latter two I would think shouldn’t be impacted near term to rising interest rates, but could be impacted if the government decouple electric and gas prices(which they should). That said, they were targeting a return of 8-10% per annum prior to 2022, so the only real issue I think now might be inflation.
Since I’m a novice, I should study this topic thoroughly before making my first investment in cryptocurrency or something else. I have real estate trading experience. But it didn’t last long. I bought three rooms in an office building. Now I have a stable income because three companies rent these rooms. Over the past two years, I’ve raised the rent three times because the real estate market has increased. Now I’m interested in the opinion of more experienced traders. What do you think about the predictions of the real estate market’s collapse from https://timthomas.co/signs-of-a-housing-market-crash/?
I like an active approach for emerging markets due to greater market inefficiencies which should, in theory at least, help managers beat the index.
I hold VFEM and JP Morgan Emerging Markets (JMG) at a 50:50 ratio for my emerging markets exposure although I’m increasingly tempted to sell the former. I’d expect JMG to continue to outperform in the long term but be more volatile than the index in the short.
I’ve also opened a small position in BRFI recently. As its name suggests, the trust focuses on so-called frontier markets such as Saudi, Vietnam, UAE, Thailand and Indonesia.
Part of me questions the extent to which China, India, Taiwan, Hong Kong, South Korea etc can really be said to be emerging/developing markets nowadays.
Both trade at an 11/12% discount to NAV. Although that’s wider than usual, which is 9%ish, don’t get drawn into the trap of thinking that’s going to flip to a premium anytime soon.
In a nutshell, yes. The article puts the average discount at about 13% currently, meaning there’s a £30bn+ difference between trust NAVs and share prices.
RCP, the Rothchild’s trust, is an interesting example. It traditionally focuses on capital preservation but it’s taken a hammering lately due to its private equity exposure, which has shot up in recent years, and concerns about whether its unquoted valuations are true/fair.
Has anyone seen the income statement on 212for CHRY. Fairly certain a trust worth about 1bn did not have a loss of 600m. I reckon its showing capital as income as the market price reached highs of around 272p.
It’ll be the changes in fair value of investments (capital) and revenue added together. The loss was enormous. About half of it was because Klarna had to be drastically revalued. The NAV dropped a lot accordingly. I just looked at the accounts (again) on investegate.co.uk.  It’s in accounting standards (IFRS 9) that changes in fair value of equities held normally have to be recognised in the Profit and Loss account. So the statement for CHRY on t212 will be right. [end edit]
That is the problem with iliquid assets (meaning not publicly traded and without high trading volume, e.g. Private Equity in case of Klarna, or Direct Real Estate or Direct Infrastructure, etc) and that some IT don’t value their portfolio on a regular daily basis, some only update monthly or even quarterly.
And those spaced valuation potentially originate big surprises (bigger time intervals could mean bigger surprises), for the good and the bad.
Those are the reasons, I don’t invest Private Equity/Venture Capital focused IT, despite their higher potential returns.