Investment Q&A

Q: Would appreciate an update on this trio of related companies. The share split seems to have benefitted EVT and ELF appears to be increasing in anticipation of the same.

Q: Hello 5i Team

I currently hold E-L Financial (ELF), Economic Investment Trust (EVT) and United Corporations (UNC).

Ultimately the total value of these three holdings is 2.84 % of my equity holdings with ELF (0.77 %), EVT (0.66 %) and UNC (1.41 %).

E-L Financial and the controlling family shareholder holds approximately 25% ownership of EVT (through direct ownership) and approximately 53 % (through indirect subsidiaries) with a resulting public float of 21 %.

E-L Financial and the controlling family shareholder holds approximately 55 % of UNC and approximately 23 % (through indirect subsidiaries) with a resulting public float of 21 %.
Through Normal Course Issuer Bids and Substantial Issuer Bids, E-L Financial is very slowly increasing its control (approximately 1 % per year).

I understand all three securities have extremely low trading volumes (less than 500 shares per day and some days no trades). I am looking at a long-term holding period (> 5 years).

Questions

1 – General comments on ELF, EVT and UNC.

2 – Given the very slow creeping takeover (i.e. 20 years to complete takeover), does it make sense to retain holdings of EVT and UNC and sell my holdings of ELF? The ultimate goal is to reduce the number of holdings in my portfolio.

Thank you

Q: Any reason to think the shares will ever approximate book value?