This is useful info.
UncleEbenezer wrote:All of them trade at premia these days. But what that actual means is not entirely straightforward: rather it means the market is putting a higher value on the assets than the formulae used by the managers.
A ha! That explains why when one views the market price vs. NAV comparision (for example on the HL site), why the NAV plot it very "step-like", i.e. the NAV here is not the current weighted sum of the real equity shares (e.g. in the case of the City of London IT - CTY), but rather is the current month valuation as according to the firm's accountant.
UncleEbenezer wrote:You might find it helpful to think of it as you would a bond or preference share - which tend to trade at substantial premia these days (at least, where the market has confidence in the issuer). You put a value not on the nominal asset but on the income stream, within a confidence interval representing your view on how you expect the management to perform in sustaining and gradually growing that income.
Yes, this is a helpful analogy.
UncleEbenezer wrote:Also worth noting, Renewable Infrastructure assets periodically raise more money (to acquire more assets). JLEN recently had a placing. Sometimes you get the opportunity to buy at a slightly more favourable price, as in this recent case with a sector peer: viewtopic.php?f=26&t=16737
I get it. So "it" (JLEN) is fairly similar to a regular company in that guise.
Matt