Take on Trusts – July 2024

In July, Edison’s investment companies team concluded its thematic campaign on emerging markets (EM), with an insightful webinar featuring experts from WhiteOak Investors, Fidelity International and ICM Group, as well as a special Uncovering Trusts podcast episode. This month our company research covered Templeton Emerging Markets Investment Trust, whose board is addressing the persistently wide discount via an acceleration in share repurchases, a commitment to at least maintain the current annual dividend and a conditional 25% performance-related tender offer. Baillie Gifford China Growth Trust’s managers have been taking advantage of the low valuations to enhance exposure to China’s best high-growth companies across a range of industries. Deutsche Beteiligungs completed an issue of €100m senior unsecured convertible bonds and the proceeds will be used for co-investments with DBAG and ELF Capital funds and for general corporate purposes. Molten Ventures completed the exits from Perkbox, Endomag and Graphcore, which will translate to more than £70m of realisation proceeds, meaning the company is on track to achieve management’s expected £100m in exit proceeds in FY25.