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SLA to launch new property IT

richfool
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SLA to launch new property IT

#99831

Postby richfool » November 29th, 2017, 9:39 am

SLA are launching a new Property IT which will invest in warehouses in Northern Europe.

"The new trust, Aberdeen Standard European Logistics Income (ASELI), will operate ‘big box’ warehouses and the ‘final mile’ infrastructure needed to deliver all that stuff we buy online."

From Citywire:
It’s good to see Standard Life Aberdeen (SLA), the £670 billion fund management giant, choose an investment trust for its first product launch since the two firms merged earlier this year. Better still, it’s a brilliant idea.

While most funds that aim to gain from newish technology promise growth tomorrow but deliver little or no income today, SLA’s new trust might do both with a target yield of 5.5% and total returns of 7.5% per annum.

The new trust, Aberdeen Standard European Logistics Income (ASELI),will operate ‘big box’ warehouses and the ‘final mile’ infrastructure needed to deliver all that stuff we buy online.

Against that, potential subscribers at issue should always beware the risk they may pay more than the shares subsequently fetch on the open market. This is less of a problem now the rising popularity of investment trusts has depressed the average discount to 4% and quite a few trusts trade at a premium to net asset value (NAV)


http://citywire.co.uk/investment-trust- ... nt#1073215

richfool
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Re: SLA to launch new property IT

#99917

Postby richfool » November 29th, 2017, 1:35 pm

Having recently bought into Warehouse REIT (WHR), I'll probably stick with that. Though, noted that the new ASELI would give exposure and diversification into Europe, albeit with the resultant increase in currency risk that would entail.

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Re: SLA to launch new property IT

#99950

Postby forrado » November 29th, 2017, 2:51 pm

Quote from the Ian Cowie authored Citywire article:

This is less of a problem now the rising popularity of investment trusts has depressed the average discount to 4% and quite a few trusts trade at a premium to net asset value (NAV)

And, don’t the marketing departments of fund management houses know it! As witnessed by the steady stream of investment trust IPOs now dropping into my email inbox. If the demand is there then let’s tap into while we can is how their minds have always worked. And, what do retail investors want – in a word ‘income’ because its the retiring baby-boomers who have the money brought about by recent pension freedoms.

I’ve a long enough memory to recall seeing similar IT IPO patterns like the number of emerging markets trusts before the 1997 Asia financial crisis, the rush to float tech ITs before the 2000 bust and the rise of split trusts before the ‘Magic Circle’ imploded during 2002. In the minds of UK retail investors, it’s taken the investment trust movement the last 15 years to recover from the catalogue of disasters of the previous 5 years only for fund management houses to be apparently tempted back to their old IPO ways.

For those retail investors who have only come to ITs in last decade or so Investopedia issues a timely warning …

"IPO Basics: Don't Just Jump In"
https://www.investopedia.com/university/ipo/ipo2.asp

Always remember that supply will always rise to meet demand and an IPO is a supply-side sales pitch being used as a means to satisfy such a demand. And, with no track record to speak of, you won’t know if it does what it says on the tin for quite some time. All I’m cautioning is that, not for the first time, it could end in disappointment.

Re: Ian Cowie
Had little time for the musings of Ian Cowie when he wrote for The Telegraph. I formed the opinion he was something of ‘cheer leader’ for fund management groups. He hardly ever had a critical word to say about them unless they had really messed up. As well as currently freelancing for Citywire, Cowie also does promotional articles for JP Morgan Asset Management. He knows which side his bread’s buttered.

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Re: SLA to launch new property IT

#100025

Postby BrummieDave » November 29th, 2017, 7:38 pm

Funny how and why one's perceptions of someone can change on a single fact - I used to take much more notice of Cowie until one day in one of his articles he said he had never driven a car, ever. Never owned one, never driven one.

Don't know why, but I held him in far less regard after that.

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Re: SLA to launch new property IT

#100701

Postby Raptor » December 2nd, 2017, 8:15 am

Moderator Message:
Moving main to REIT's, leaving shadow. Raptor.

richfool
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Re: SLA to launch new property IT

#105565

Postby richfool » December 21st, 2017, 3:52 pm

This new IT seems to have materialised as ASLI (Aberdeen Standard European Logistics Income trust). It's currently trading at 101.50p to buy.

richfool
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Re: SLA to launch new property IT

#141941

Postby richfool » May 28th, 2018, 6:44 pm

I just thought I would see how this IPO of last year is getting along.

It's now known as Aberdeen Standard European Log (ASLI) and is in the Property Direct - Europe sector.

Current SP: £1.06p
Premium: 9.1%
Yield: None yet, though targetting 5.5% in Euro terms.

I noted on the KID that transaction and other costs total c 4.5%, though no management fee to be charged until at least 75% invested.

http://citywire.co.uk/money/investment- ... undID=4042

http://www.hl.co.uk/shares/shares-searc ... ics-income

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Re: SLA to launch new property IT

#141952

Postby FredBloggs » May 28th, 2018, 7:07 pm

richfool wrote:I just thought I would see how this IPO of last year is getting along.

It's now known as Aberdeen Standard European Log (ASLI) and is in the Property Direct - Europe sector.

Current SP: £1.06p
Premium: 9.1%
Yield: None yet, though targetting 5.5% in Euro terms.

I noted on the KID that transaction and other costs total c 4.5%, though no management fee to be charged until at least 75% invested.

http://citywire.co.uk/money/investment- ... undID=4042

http://www.hl.co.uk/shares/shares-searc ... ics-income

Wow! >9% premium? Sell it.

richfool
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Re: SLA to launch new property IT

#141969

Postby richfool » May 28th, 2018, 7:57 pm

FredBloggs wrote:Wow! >9% premium? Sell it.

Fred, I don't hold it, - I was checking how it was going.


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