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FRCL at a Premium!

Closed-end funds and OEICs
Avalaugh
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FRCL at a Premium!

#180390

Postby Avalaugh » November 14th, 2018, 10:39 pm

Is it just me or surely any time when FRCL is at a premium we must be in an overheated market.
Can anyone remember a time when this was true in the past?
I’ve always known at least a 7 -10+ % discount

Thanks

monabri
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Re: FRCL at a Premium!

#180398

Postby monabri » November 14th, 2018, 11:38 pm

FRCL now known as FCIT

https://www.hl.co.uk/shares/shares-sear ... st-ord-25p

Graph shows premiums/ discount, especially the 5 year chart.

Eboli
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Re: FRCL at a Premium!

#180417

Postby Eboli » November 15th, 2018, 6:58 am

I went back to 2nd June 2008 on the Morningstar data and that shows no previous premium to the recent development. Though it nearly went to a premium in February 2009.

Eb

tjh290633
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Re: FRCL at a Premium!

#180445

Postby tjh290633 » November 15th, 2018, 9:21 am

My recollection from the last AGM is that the discount has been reducing continuously over recent time. I think they have been using buyback as a discount control mechanism, but not recently, unlike ATST who have a daily RNS on the subject.

TJH

DavidM13
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Re: FRCL at a Premium!

#180465

Postby DavidM13 » November 15th, 2018, 10:08 am

I think the confusion above is HL seems to have Ex Par discount whereas Eboli is using Cum Fair discounts. (clue being he went back to the start of cum fair history which was 31/05/2008)

actually Eboli i see a premium for cum fair on 19th/20th March 2009 using M* cum fair discount data. The FCIT factsheet for 31/03/2009 shows a discount of 1.9% so the below figures look very believable. We could check announced NAV and closing price on that day but lifes too short.

10/03/2009 -8.35
11/03/2009 -6.17
12/03/2009 -4.85
13/03/2009 -1.11
16/03/2009 -0.37
17/03/2009 -1.82
18/03/2009 -2.50
19/03/2009 0.15
20/03/2009 2.19
23/03/2009 -1.39
24/03/2009 -1.36
25/03/2009 -3.56
26/03/2009 -7.65
27/03/2009 -6.69
30/03/2009 -4.78
31/03/2009 -1.95
01/04/2009 -3.60
02/04/2009 -1.89

Eboli
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Re: FRCL at a Premium!

#180748

Postby Eboli » November 16th, 2018, 5:48 am

Thanks David for the information and clarification.

Morningstar only publishes fortnightly closes on the tool I use but examining the graph I see the NAV did exceed Share Price (on cum fair) around the middle of March so the date you produced seems right.

Eb

Dod101
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Re: FRCL at a Premium!

#180753

Postby Dod101 » November 16th, 2018, 7:16 am

I do wish we would all stop writing in code. I think the OP can rest assured that we are not exactly in an over heated market. Investment trust shares go to a premium from time to time and also to a discount as investment sentiment waxes and wanes on particular trust shares.

On TJH's point, for Alliance to be buying back its shares, as a holder, I am perfectly happy about that as long as they are buying at a discount. It marginally helps holders like me.

Dod


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