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EAI, ELLERSTON ASIAN INVESTMENTS LIMITED
nipper
post Posted: Jul 22 2021, 09:30 AM
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Posts: 10,064
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In Reply To: nipper's post @ Jul 21 2021, 03:45 PM

a similar pathway for EAI may occur;


Ellerston Global Investments (code was EGI) is an Australian listed investment company (LIC) that holds a portfolio of global equities. Having traded below Net Asset Value (NAV) for some time, the board implemented a restructuring of the LIC and converted the company into an open-ended trust. IE at parity.





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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 21 2021, 03:45 PM
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Posts: 10,064
Thanks: 2814


Ellerston Asian Investments Ltd (EAI) is listed investment company. It provides investors with exposure to a portfolio of high growth equity securities in Asia. Its objective is to generate superior returns for Shareholders, by identifying and investing in the growth opportunities which the Manager believes are present in the Asian region.

EAI listed in late 2015, at $1.00 a share. Currently trading at $1.19, the market cap is $157 million. As it has a NTA, which is published daily, is $1.33, there is some pressure on the LIC to lift to closer to the value of its assets.

The latest Bell Potter summary* of the sector highlights EAI as an attractive proposition:
QUOTE
Asia has attracted significant fund flows, however historic US China relations have undermined the expansion of this capital allocation. The new Biden Administration and the Fed's avoidance to address tapering targets for quantitative easing may be set to benefit Emerging Markets. Positive prospects for China's growth trajectory are supported by tailwinds such as: (1) an increase in the administration of vaccinations, (2) a focus on carbon neutrality with the production of electric vehicles and renewables infrastructure and; (3) an improvement in living standards with increased domestic consumption and services.

EAI provides access to a benchmark agnostic, concentrated portfolio of high growth companies across the Asia region with a proprietary integrated Environmental, Social, and Corporate Governance approach through the investment process.


* While the market average discount to underlying asset value has materially contracted since the onset of the pandemic, we anticipate income dependency, sector consolidation, shareholder activism and recent strong performance of actively managed alpha generating solutions to drive further contraction and realisation of value (in the LIC sector).



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 



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