JARA - JPM Global Core Real Assets

[Nexus5]

Hi all,

Relative newbie to investment trusts still.

I've owned JARA from IPO and topped up recently below 100. However I noticed it has slid down into low 90s now. Any idea what is driving the move?

I thought it might be something to do with a weakening Dollar and a dividend payment? I read this in their half year:

"The Company recorded a total return on net assets of -4.6% over the six months ended 31st August 2020; we do not hedge currency exposures and the weakness of the US dollar relative to sterling accounted for nearly half of this fall. "

Thanks

[mc2fool]

This is the first time I've come across this IT, and what a curious beast it is....

It seems to be (mostly) a fund of funds, concentrating on real estate, transport, infrastructure and "listed real assets" ... although the breakdowns on the AIC don't seem to make sense with each other. https://www.theaic.co.uk/companydata/0P0001IFXD/portfolio

The AIC's ongoing charge figure of 0.36% is also wrong (obviously so when you look at what the AIC reports as the management fee structure). The IT's website says the ongoing charge is 1.32%.

Anyway, can you say why you chose this IT, it seems a particularly unusual choice for a "relative newbie"...

[Nexus5]

So there are a few reasons I liked it. I liked that it was coming out of an established brand (JPM), that would have access to good infra assets and it was an area that I did not have in my portfolio (infrastructure) at all.

From memory I went for it at IPO as I thought it might be a decent flip. In fact when I just searched "JARA IPO" a thread from lemon fool came up from 2019 (can't post link for some reason).

I've kept it in there as it still offers something different to my portfolio but just wondered if there was something specific up with it which caused recent weakness. Plus I would have thought that with all this talk about improving US Infrastructure bill would have seen it perform at least a little bit.

Not too fussed, just seems to be a lack of coverage of the name in the financial press/investment trust podcast etc.

On a slightly related topic, where do private investors find research on investment trusts other than reading the trust pages themselves?

Thanks

[GrahamPlatt]

On a slightly related topic, where do private investors find research on investment trusts other than reading the trust pages themselves?

viewtopic.php?f=54&t=27473#p380140

[Itsallaguess]

On a slightly related topic, where do private investors find research on investment trusts other than reading the trust pages themselves?

viewtopic.php?f=54&t=27473#p380140

The Investment Trust Handbook 2021 is still also available via a free PDF download from here - https://harriman-house.com/ithb2021

Some other good sources of info regarding Investment Trusts are -

The AIC - https://www.theaic.co.uk/guide-to-investment-companies

https://www.theaic.co.uk/aic/find-compa ... set=import

Trustnet - https://www.trustnet.com/ (although I usually just Google 'Trustnet xxx' where xxx is the EPIC of the Investment Trust that I'm interested in..)

Then of course we've got our very own Investment Trust board here, as well - https://www.lemonfool.co.uk/viewforum.php?f=54

Cheers,

Itsallaguess

[Alaric]

From memory I went for it at IPO as I thought it might be a decent flip. In fact when I just searched "JARA IPO" a thread from lemon fool came up from 2019 (can't post link for some reason).

This thread perhaps
viewtopic.php?t=19348#p249624

Being an Investment Trust, its price can fall if the discount widens. The thread notes that its fellow trust MATE showed this effect from its own IPO.

[Hariseldon58]

So there are a few reasons I liked it. I liked that it was coming out of an established brand (JPM), that would have access to good infra assets and it was an area that I did not have in my portfolio (infrastructure) at all.

From memory I went for it at IPO as I thought it might be a decent flip. In fact when I just searched "JARA IPO" a thread from lemon fool came up from 2019 (can't post link for some reason).

With Investment Trusts I’m not sure buying an IPO is really a great idea if your view is to flip it. They tend to be in areas that are popular, ie they may be coming to the market late. The supply side is elastic, the higher the demand, then they can raise more money and the costs of the launch come out of the fund raising, leading to an automatic fall in the NAV at launch.

(It was common years ago that new trusts would come with warrants to help offset that effect, but no longer)

[Nexus5]

Thanks. Yes since my JARA Purchase it's been buy and hold for other investment trusts as most seem to.only go up (e.g most Baillie Gifford strategies). But clearly.not everything lasts forever.

This week JARA has bounced back, and I believe it has something to do with the recent strength of the Dollar. As per my initial post I think I referred to JARAs comments re being unhedged for FX purposes which caused a bigger impact on their NAV than the underlying investments.

I wonder if they will change this policy going forward. Either way, happy to see it climb back up. Thanks for all your help/feedback so far.

[richfool]

Noting that JARA invests in "real" assets, such as infrastructure, transport and real estate, presumably with the intention of providing diversification into real assets, I would think that the transport and real estate sectors, at the very least, will have been adversely affected by the covid pandemic. It will surely now depend on how quickly markets anticipate that the world and those sectors will recover from the affects of the pandemic.

I noted that the trust is targetting a dividend of 4-6% when fully invested, based on IPO price.