Economic Investment Trust Limited is a closed-end fund traded on the Toronto Stock Exchange under the symbol EVT. It was launched in 1928 and has never redeemed or purchased shares. EVT fully intends to remain a closed-end fund.
As of March 31, 2011, EVT had gross assets of $479,935,000 and does not use leverage. A major portion of its portfolio is concentrated on just three companies, all Canadian. The balance of its portfolio is invested globally and managed by Sanford C. Bernstein & Co., LLC, a highly respected investment manager based in New York.
EVT's three major investments, as of March 31, 2012, were as follows:
| E-L Financial | 36.8% |
| The Bank of Nova Scotia | 9.1% |
| Algoma Central | 7.3% |
The rest of the portfolio is well-diversified and globally invested. These investments are in the following geographic areas:
| United States | 20.1% |
| Europe | 7.7% |
| United Kingdom | 6.1% |
| Asia | 7.9% |
EVT has small short positions against the yen and British pound to partially hedge currency exposure. As of March 31, 2012, the portfolio's cost basis was $259,574,000 and its market value was $479,935,000. (Please note that all figures are in Canadian dollars.)
EVT presently trades at a 28% discount from net asset value. This discount has been as high as 45% and as low as 20%. This is to be expected in light of its concentration of assets.
The Bank of Nova Scotia (BNS) is a highly respected and large Canadian bank. It is stable and growing. The largest asset, E-L Financial, is a financial service holding company focused on insurance. It does sell at a high price/earnings ratio, but it also trades at 60% of book value. Algoma Central has been operating ships on the Great Lakes since 1900 and is the largest inland shipping company in Canada.
EVT is an interesting investment. Approximately 50% of its assets are invested in three large and solid Canadian companies, while the remaining 50% are invested globally through a third-party investment manager with a fine reputation. The discount from net asset value of almost 30% adds to its appeal.
As usual, I would not investment all my money in EVT, but I would own it as part of a basket of closed-end funds.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
