Activist hedge fund Saba Capital doubled its position in SDCL Energy Efficiency Income (SEIT) to 10% on Tuesday, the day after its shares tumbled 18% after the company said in half-year results that it was looking at all strategic options, prioritising debt reduction and warned it may not recommend shareholders vote for the company’s continuation next year.
Pacific Assets (PAC), the £418m sustainable investment focused Asia Pacific investment trust, has formally launched a strategic review after being disappointed by First Sentier’s closure of its Edinburgh-based fund manager Stewart Investors in November. Having consulted with its largest shareholders, the company says corporate broker Investec will help it assess its options and future investment strategy. The board invites proposals from investment managers active in the Asia Pacific region. These include FSSA, the Hong Kong subsidiary that has been managing its assets since First Sentier’s move.
Schroder BSC Social Impact (SBSI), a £51m investment trust on a 36% discount, provides a second update on the strategic review announced on 2 July saying extensive consultation shows while most shareholders want continued exposure to the company’s portfolio, some want a return of capital. A managed wind-down remains on the table as the board continues to assess its options and will publish a proposal before next year’s annual general meeting so shareholders can vote on it. Meanwhile no new investments are being made that would extend the life of the company.
James Carthew, head of investment company research at QuotedData, said: “It seems remarkable that Schroder BSC Social Impact’s strategic review is still not concluded almost six months after it began. I think that there ought to be a role for an impact investor in the trust sector, but the trust is already small and the discount far too wide.”
Regional REIT (RGL), the £162m real estate investment trust standing on a 52% discount, is to save shareholders £1.3m in the next two years with an overhaul of its management contract with ESR Europe Investment Management Ltd and ESR Europe LSPIM. From 1 January the management fee will move from being based wholly on net tangible assets (NTA) to 75% NTA and 25% market capitalisation before moving to a 50-50 split in January 2027. Performance fees have been scrapped and the notice period cut to two years from three. This follows a concerted effort by the company to reduce debts and turn around its business after a 40% slump last year.
Baillie Gifford Japan (BGFD) saw just over 11% of shareholder votes cast against its continuation at yesterday’s annual general meeting. All resolutions passed with the company securing 98-99% support on the other 12 votes. The £861m trust managed by Matthew Brett and Brian Lum at Baillie Gifford stands on a 10% discount . The shares have rallied nearly 24% over one year but have delivered a 10% total loss over five years. Annual results in October showed improved performance for the year to 31 August with a 20.5% investment return that beat the 12.1% of its Topix index benchmark. Returns in the £788m portfolio managed by Matthew Brett were powered by a recovery in Softbank, its largest position, and £75.2m of share buybacks.
Rockwood Strategic (RKW), the £150m trust leading the UK Smaller Companies sector with a five-year total shareholder return of 155%, has called a general meeting to renew its authority to issue 20% more shares. The trust, which stands on a 2% premium to net asset value, has nearly exhausted its permission to issue 8.5m shares approved in July.
QuotedData’s James Carthew said: “Sadly, we have become accustomed to seeing investment companies calling EGMs to extend their share buyback authorities. That Rockwood is calling one because it is running out of room to issue stock is great news. It is also well-deserved – three nominations in the QuotedData Investors’ Choice Awards are evidence of this.”
Partners Group Private Equity (PEY) increased net asset value by 0.5% to €976.4m in October with NAV per share €14.15 at the end of the month. It received €89m from the sale of stakes in PCI, a global contract manufacturer, and Techem, a European sub-metering services provider. It invested €44.5m including €17.2m in two new investments: €12.9m in a US healthcare provider and €4.3m in Infinity Fincorp Solutions, a leading non-bank lender in India. It also began share buybacks with a €15m pool set aside for purchases through to the end of January. The investment company stands on a 24% discount.
NewRiver REIT (NRR) has agreed to set up a joint venture with Mid Sussex District Council to deliver the regeneration of the “outdated 1970s” Martlets shopping centre in Burgess Hill. The proposed development has planning consent to deliver 172 new homes, a 102 room hotel, 50,000 sq ft of new retail space including a 21,000 sq ft food store and enhanced public area.
Starwood European Real Estate Finance (SWEF) has announced a £30m return of capital following the repayment of its Industrial Estate loan last month. The tenth distribution in the company’s wind-down will see 57% of its shares compulsorily purchased at a price of 96.7p and leave it with just two loans in its portfolio.
