Investment trust insider on 2023 – James Carthew: Dramatic 2023 leaves sector radically different
The rationalisation of the sector continues.
There has been a flurry of announcements over the past couple of weeks: Abrdn Diversified Income and Growth (ADIG) announced a managed wind down; Triple Point Energy Transition (TENT) declared it will begin an orderly realisation of its assets; GCP Asset Backed Income (GABI) kickstarted a strategic review that could see it sold or dismembered; RM Infrastructure Income (RMII) published more information on its wind-down proposals; and Abrdn European Logistics Income (ASLI) revealed that it was considering its future after having concluded a dividend cut was needed.
Digital 9 Infrastructure (DGI9) also looks likely to fall (or be pushed) upon its sword following the disappointing outcome of its sale of Verne Global. Plus three more mergers were announced.
As we approach the end of 2023, the sector is in radically different shape than it was at the start of the year. Back then, there were, by my reckoning, 344 investment companies with a collective market cap of £186.2bn. At the end of November, that had fallen to 327 companies and £168.4bn.
In November, only 11 companies issued new stock and within that just JPMorgan Global Growth and Income (JGGI) and Ashoka India Equity (AIE) issued more than £5m worth. By contrast,… read more here