Finsbury Growth & Income (FGT) fund manager Nick Train has lifted his personal stake in the £973m UK equity income trust to 4.9%. Following the purchase of 25,000 shares at 824p yesterday, he owns a total of just over 5.7m shares. The manager, who has a long record of buying shares in his funds, is under intense scrutiny over the investment trust’s performance whose total investment return of 9% over five years ranks it at the bottom of its sector and far behind the 67% return of the FTSE All-Share. At next week’s centenary annual general meeting, the company will hold its first continuation vote. Train has said he will abstain and not use his holding in favour of continuing a trust that he has managed for 25 years. Despite a fifth consecutive year of underperformance last year, Train has said he will not change his investment process, retaining high conviction in the potential of his portfolio of digital winners and strong consumer franchises.
Schroder European Real Estate (SERE) says the valuation of its portfolio was unchanged at €194m in the fourth quarter of last year despite a 2.5% decline in the Apeldoorn data centre where tenant KPN formally served 12-month notice last month. Fund manager Jeff O’Dwyer said the valuation of the Dutch asset, which accounts for 6% of the portfolio and 19% of its income, had already anticipated the telecom group’s departure at the end of this year. “Consequently, the quarterly decline of €0.3m, or 2.5%, is attributable solely to the shortening lease term,” he said. Elsewhere, its Berlin DIY asset delivered a third consecutive quarter of valuation growth, up €0.5m or 0.2%, following the expiry of rent-free periods. Its office assets in Paris, Hamburg and Stuttgart remained stable, though the industrial portfolio was more varied, with notable valuation increases in Houten (€0.4m or 4.5%) and Utrecht (€0.1m or 2%) offset by a valuation reduction in Alkmaar (-€0.6m or -5.5%), as a result of increased tenant covenant risk. Shares in the £82m real estate investment trust stands on a 40% discount.
Partners Group Private Equity (PEY) saw net asset value fall 2.8% to €919.9m in November with NAV per share closing the month at €13.3. Portfolio revaluations were the main factor, causing a 2.2% decline with the write-down of Esentia, the Mexican gas pipeline operator, after its disappointing flotation, knocking 1.3% off NAV. Currency movements had a negative 0.3% impact. The company declared a second interim dividend of €0.375 per share, received €15.3m in distributions and invested €2.9m during the month. The £730m London-listed investment company stands on a 22% discount.
