Util Share Price (UTL)

Oh dear, Resimac fell about 10% to A$ 1.05 yesterday building on a recent downtrend, I don't know why. As this will affect the NAV here significantly I have speedily got fully out again at a small loss. It looks like I am not the only one selling today with no buyers apparent.

OK, I'm back in modestly as NAV seems to be improving now 263.33. Of course if no one buys in here the discount will just increase. Company share buybacks looks like a forlorn hope.

Some ghastly looking falls in portfolio companies in May revealed in the monthly factsheet. Also revealed that UIL and others are going to take over Somers, I don't know if that is a good move or not given the existing relationship between the companies. In the circumstances I am now fully out, as there appears to be absolutely no buyers around I can't see the share price rising, at least it hasn't fallen with the market over the last few days as aside from me there are almost no sellers recently either.

NAV for 10/6 down to 287p and Resimac fallen a further 7.25% today in Australia so I expect a lower NAV to be reported tomorrow here. It is looking like UIL could manage to have closed the discount to NAV here soon to near the target of 20% not through any of their own efforts but through the poor recent performance of the fund.

February Factsheet shows an annual fall in share price of 9.1% NAV fall of 3.2% as against a rise in benchmark FTSE All share of 16% however the fund has significantly outperformed in earlier years. I don't know how relevant the benchmark is given the significant investments in Australia and Bermuda. Also the NAV is at 34.1% discount when the stated aim is to get to a discount of just 20% and there is little movement in fund holdings despite many being listed companies so are presumably liquid enough. Just saying that seems to be the nature of the beast.