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magazineICG Enterprise delivers strong first half
ICG Enterprise (ICGT) 898p
Gain to date: 10.7%
Original entry price: Buy at 811p, 31 January 2019
Our faith in private equity investment trust ICG Enterprise (ICGT) is finally being rewarded after a strong set of first half results (3 Oct).
The fund generated a net asset value (NAV) total return of 12.4%. This was supported by the top 30 holdings, accounting for 48% of the fund’s total value, which saw average earnings growth of 16% in the last 12 months compared with growth of just 6% for the FTSE All Share.
The company continues to invest heavily and the portfolio looks well positioned for uncertain times. There is a bias towards more defensive firms which are not as exposed in relative terms to fluctuations in the economy and which enjoy strong barriers to entry to underpin reliable cash generation.
Winterflood analyst Simon Elliott comments: ‘We find it hard to rationalise the current discount that ICG Enterprise Trust finds itself on, given its long-term performance record and the uplifts from realisations seen in recent years, albeit this is equally true for its peers too.’
The discount to NAV has actually barely budged from where it was when we first flagged the trust’s attractions in January at 22%, suggesting there is still plenty of value here.
SHARES SAYS: Keep buying.
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