I love buying something when I have two coupons I can use on an item at the same time. If I have a 10% off and a 20% off coupon giving me a total of 30% off you will find me a minute later walking out of the store with a smile and a swagger.
One investment that offers such a double discount is Economic Investment Trust (TSE:EVT).
Economic Investment Trust is a closed end fund. I have discussed closed end funds previously here. EVT has long term investments in E-L Financial Corporation, Algoma Central Corporation and Bank of Nova Scotia. The rest of the funds are invested in a pool of global publicly traded stocks managed by Burgundy Asset Management Ltd. The fund has a low management fee of 0.43%. As of the 27th of March EVT trades at a 24.14% discount to it’s net asset value.
It get’s even better though as 41.6% of the holdings of EVT are composed of an investment in E-L Financial corporation which itself trades at a discount. E-L Financial (TSE:ELF) is an holding company which owns Empire Life Insurance as well as a large portfolio of stocks and bonds. As of it’s latest financial statements at the end of 2017 ELF had a net equity value of $1,316.64 per share and as of April 3rd trades at $814.98 per share giving it a discount to NAV of 38.1%.
So doing the math EVT trades at a discount to NAV of 24.14% and 41.6% of it’s holdings itself trades at a further discount of 38.1%. So in essence when you buy shares of EVT you are getting a diversified stock portfolio at a combined 43.82% discount to net asset value! I believe that EVT is a compelling long term holding. Neither EVT or ELF are purchasing back their stock at this time though so these discounts will likely persist.
Disclosure: I own shares of TSE:EVT and TSE:ELF