VOW Universe Update
All,
Find below an update on VOW and PAH3 including:
- Update on the VOW3-VOW share class
- Updated VOW SOP & Stub value (as of Q1 2025)
- Updated PAH3 SOP (as of Q1 2025)
1/ VOW3-VOW share class
VOW3, the most liquid line is currently trading at a 2.1% discount to VOW. This is the tightest level ever and the spread has been trading there since the beginning of 2025.
The spread started to significantly tighten in Jun 2024 ahead of VOW’s MSCI exclusion (Aug 2024). The next reviews Euro Stoxx 50 are quarterly June 2025 (review announced Jun 2, effective Jun 16) and in semi-annual in September 2025 (annual review announced Sep 1, effective Sep 15).
VOW3 is currently one the bottom 5 components of the Euro Stoxx 50 by free float market cap, only after Kering, Stellantis, Pernod; and could potentially be excluded from the index in September if the underperformance continues.
If such a scenario were to materialise, this could have a significant impact on VOW3 price as well as the spread.
We believe a Long VOW GY / Short VOW3 GY position is attractive.
Some a reluctant to consider such a position due to liquidity but setting up this spread today, you would be short the most liquid line which is a much more comfortable position.
VOW3-VOW Share class profile since Jan 2023:
2/ VOW SOP & Stub update
VOW is trading at a 47.6% discount to its NAV.
VOW is more of a stub than a holding play and we do not see it as attractive in current market conditions.
Updated VOW SOP (as of Q1 2025):
VOW implied stub value:
3/ PAH3 SOP update
PAH3 is trading at a 26.0% discount to its NAV (Q1 results released on May 14th).
PAH3 holding discount has tightened recently. Indeed, VOW has outperformed PAH3 but P901 has significantly underperformed PAH3 hence the holding discount tighter.
We do not see a trade on this holding for now even if a long holding could be used as an alternative to our suggested VOW share class trade.
Updated PAH3 SOP (as of Q1 2025):
David Darmouni
Equity Sales
Makor Securities London Ltd. | Makor Group
E: ddarmouni@makorsecurities.com
O: +44 207 290 5777
W: www.makor-group.com
6th Floor, 30 Panton Street, London, SW1Y 4AJ
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