Trusts, ETFs & Funds

Trusts, ETFs & Funds equity research

Explore the latest equity research for companies within the Trusts, ETFs & Funds sector. Funds in this sector provide investment opportunities via equity and non-equity investment trusts, as well as exchange-traded funds.

Trusts, ETFs & Funds equity research

12 Sep 18

Share & share alike

Here we go again – the company reporting season is gathering pace. The MPC is likely to leave rates unchanged although expectations still remain for an increase next year. The UK economy expanded at a faster pace in July helped by the weather and better retail sales. General sentiment continues to be impacted by tariff concerns, combined with Brexit uncertainty. As Table 1 shows, all major indices have fallen over the last month. In Share News & Views, we comment on AorTech*, Bonhill*, DeepMatter*, EU Supply* James Fisher, Haynes, Hunting , Location Sciences*, Marshall Motor and Synectics*.

Companies: AOR APC BMS CRPR DMTR ESC EUSP FDM FA/ GETB LSAI PCF SNX TCN W7L

18 Sep 18

Focus on execution improving

Interim results have met expectations. Headline results show strong growth with revenues up 18% on a LFL basis. Profitability has leapt, with group EBITDA up over 400%. Net debt was better than expected with a significant improvement in working capital. In addition to the £2.0m of cost savings now in place, progress is being made with regard to the centralisation of business support functions. The centralisation of the business development teams targeting winning and growing larger clients is also progressing. Following the recent management changes, the new executive team has initiated a review of the operations with a view to making sure the business can leverage its proposition by becoming more “relevant, authentic and distinct”. While market conditions are soft the group still expects healthy growth in H2 given current visibility. This underpins our FY18 expectation and with the cost savings set to benefit in full next year we maintain our FY19 forecasts as well.

Companies: Be Heard Group

25 Jul 18

LIBERUM: Burford Capital* - Very strong HY results

Burford has reported another impressive performance in the H1/18 period. Adjusted profit before tax of $163.8m represents 72% of our current full year forecast, significantly de-risking our FY forecast.

Companies: Burford Capital

17 Sep 18

VinaCapital Vietnam Opportunity Fund - Strong market fundamentals expected to prevail

VinaCapital Vietnam Opportunity Fund (VOF) is one of the oldest and largest Vietnam specialist investment companies and is now a FTSE 250 index constituent. Investing across asset classes – listed and unlisted equity, private equity and real estate – VOF’s approach is differentiated by its focus on private deal sourcing, where its investment team has extensive experience. In sterling terms, VOF’s NAV total returns have been strong over the last three years. While lagging the Vietnamese stock market over one year, VOF’s NAV held up well during the 2018 market correction. The US-China trade dispute has weighed on market sentiment, but the manager believes that fundamentals remain strong and the current market level presents an opportunity for investors taking a medium-term view.

Companies: VINACAPITAL VIETNAM OPPORTUN

17 Sep 18

Utilico Emerging Markets Trust - Simplified corporate structure

Utilico Emerging Markets Trust (UEM) is a specialist fund focusing on infrastructure and utility investment in emerging market equities. In April 2018, UEM completed its re-domicile from a Bermuda-based investment company to a UK-based investment trust, in order to benefit from the UK’s increasingly supportive regulatory and tax environment. There is no change to UEM’s investment approach or dividend policy. Also, following the final exercise of its subscription shares, UEM now has a simpler capital structure. The board believes that these changes have potential to improve investor perception and, over time, lead to a narrower discount.

Companies: Utilico Emerging Market

02 Jul 18

H1 Review

Best Ideas - 2018 H1 Review

Companies: SAA VP/ GLE AMO IOM HSP CVSG EKF PGIT VRP RLM AVG SOG DNLM SFR YU/ CBP

26 Jul 18

No need to appeal these results

The 2018 interims yet again gave record figures, with the headline figures showing income and profits after tax both up 17%. The stand-out figure, however, was cash generation, which was boosted by the sale of the Teinver claim and came in at $299m. The main driver behind this growth remains the litigation finance business, which accounted for almost 95% of revenue. Revenue in this business rose by 21% and profit after tax by 23% to $185.4m. New business remained strong, with additions to investments up 19% on 1H’17, and total commitments increasing by 10%. Strong realisations offset some of this, and invested capital grew by 7% over the period.

Companies: Burford Capital

01 Aug 18

The Monthly

Hardman & Co’s analysts have direct experience of uncovering accounting frauds. In this article, Steve Clapham outlines why we might see a surge in them over the next few years. He is engaged by institutions to teach their fund managers and analysts how to identify risks brought about by such frauds. Hardman & Co is pleased to offer this service to private investors.

Companies: OPM AVO AGY APH ARBB AVCT BUR CMH CLIG COS DNL EVG GDR INL KOOV MCL MUR NSF OXB PHP RE/ REDX SCLP SCE SIXH TRX TON VAL W7L

12 Sep 18

GCP Student Living - Strong FY18 progress and positive outlook

GCP Student Living (DIGS) saw strong growth in FY18 rental income, driven by an increasing number of operational beds, continuing full occupancy and good levels of rental growth. Growing dividends should be fully covered once current development projects are completed and let. Capital values also grew, with investor interest in the asset class remaining strong, contributing to 11.5% NAV total return for the FY18 year. The company continues to find attractive investment opportunities, maintaining its selective approach to investment, both by location and asset quality, and is seeking to raise up to £55m in a share pacing.

Companies: GCP Student Living

30 Jun 15

A growth business deserving a re-rating

We initiate coverage with a 210p 12 month price target, implying 42% total return. Burford is the leading player in financing litigation of commercial disputes, a new financial service for which demand is growing rapidly. Burford has built a track record of strong and replicable returns to the point that it should now be valued as a growth business, not the fund it used to be. We offer a transparent model and valuation methodology to assist wider adoption by non-specialist investors, which in our view should drive a re-rating of the shares.

Companies: Burford Capital

22 Dec 16

LIBERUM: Ranger Direct Lending - Argon Credit bankruptcy - no NAV impact expected

Ranger Direct Lending has indirect exposure to $28.3m of a $37.5m credit facility to Argon Credit which recently filed for Chapter 11 bankruptcy in the US. Ranger's exposure is through its investment in Princeton Alternative Funding which provided a facility to Argon Credit.

Companies: Ranger Direct Lending Fund

30 Jan 17

LIBERUM: Burford Capital Initiation - Pioneering alternative asset manager

Burford is arguably the world’s largest litigation and legal funder. It has a very successful track record, generating an ave. ROIC of 70%.

Companies: Burford Capital

28 Jun 17

LIBERUM: Burford Capital - Forecasts updated; reiterate BUY

We materially increase our forecasts to account for the recent Petersen sales on the secondary market and for the retail bond raise, which should facilitate a step up in 2018 new lending. Burford has outperformed, up 57% ytd.

Companies: Burford Capital

08 May 18

AIM MARKET UPDATE Q1 2018

The £1.53bn raised on AIM in Q1 2018 (new and further issues) was essentially in-line with the quarterly average seen through 2016-2017 of £1.49bn. Historically the new : further ratio has been roughly 1 : 3 but in Q1 2018 the balance was very much with further issues (£1.37bn raised) against a relatively small amount raised in new issues (£164m).

Companies: ECHO VLX CRA OTMP TRU GRC STRL

19 Jul 18

H1 shows strong revenue growth, but profit shortfall

H1 revenue met our expectations with LFL of growth of 15% driven by client wins and expanding activity with existing clients. Total growth, with significant acquisition contributions, was c70%. Persistent cost pressure related to pitching, service capacity and client spend volatility has impacted the margin, meaning a shortfall on profits. The Company has responded by taking volume related and structural cost measures which will help H2’2018 and 2019. Costs have been reshaped after a thorough review to allow for a better balance of efficiency and growth capacity. Revenue visibility analysis has yielded only modestly lower full year revenue guidance and the group is expected to continue to grow very rapidly. The net impact of these changes is EBITDA reductions of 24.6% for FY18 and 15.4% for FY19. We have also taken a simple, but we believe realistic approach for now, to adjusting earn-out payments by £1m. Be Heard is delivering on its growth strategy and now has significantly improved controls to deal with managing this growth.

Companies: Be Heard Group

11 May 18

Harbourvest - 10 years of success and the future of Private Equity

14 Sep 18

Downing Strategic Micro-Cap Investment Trust plc

24 Nov 15

Leading the Charge - Ranger Direct Lending Fund

11 May 18

HVPE results - Yr end 31 Jan 2018

12 Feb 18

121 Mining, Cape Town - Kodal Minerals

01 Mar 18

Executive interview - Seneca Global Income & Growth Trust

28 Sep 17

HarbourVest - Company Overview

19 Feb 18

Gresham House Strategic plc - An Introduction

18 Sep 17

Executive interview - Securities Trust of Scotland

14 Feb 18

Executive interview - Canadian General Investments

12 Feb 18

121 Mining, Cape Town - Berkeley Energia

12 Feb 18

121 Mining, Cape Town - Beowulf Mining

21 Nov 16

The ESP Group - Update at 121 Tech Investment

12 Feb 18

121 Mining, Cape Town - Avesoro Resources

10 Jan 18

121 Mining - Phoenix Global Mining

Latest Content

PHP SEQI JLIF

Fidante Daily Digest

Primary Health Properties – Acquisition | Sequoia Economic Infrastructure Income – Capital raising | John Laing Infrastructure – Cash offer | Greencoat renewables– Interim results to 30 June 2018

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19 Sep 18
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Fidelity Japanese Values

Fidelity Japan Trust - Established, on-the-ground expertise in Japan

Fidelity Japan Trust (FJV) has a bottom-up, research-intensive investment process, a flexible approach to gearing and a focus on stocks across the market cap spectrum that offer growth at a reasonable price (GARP). Lead manager, Nicholas Price, has just notched up three years in charge, but has been with Fidelity in Japan for 25 years, first as part of the well-resourced analyst team and later as a portfolio manager across a range of mandates. FJV was known as Fidelity Japanese Values until May 2018, but changed its name as one of a number of administrative changes designed to align with the trust’s all-cap, growth-focused strategy. Short- and longer-term performance have been strong, both in absolute terms and relative to indices; the discount widened over the summer while NAV performance remained positive, supporting near-term re-rating potential.

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18 Sep 18
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AMS AUG BHRD FST NTG SPR

Morning Song

Advanced Medical Solutions (AMS LN) OEM woundcare a millstone on Branded surgical division | Augean (AUG LN) Strong H1 profit growth; EPS upgraded by 10% pa | Be Heard (BHRD LN) Focus on execution improving | Frontier Smart Technologies Group (FST LN) Value in both divisions despite tough period | Northgate (NTG LN) In line AGM Statement, with the business on an improving trajectory | Springfield Properties (SPR LN) Sector leading growth; outperformance in cash

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18 Sep 18
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Be Heard Group

Focus on execution improving

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18 Sep 18
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Escape Hunt

Large number of variables continue

As we flagged in July 2018 on the Dr Who licence and trading update, Escape Hunt (EH) continues to make progress in its strategy to become the premium operator in escape rooms. EH’s first three sites have traded in line with expectations and the UK rollout programme will see five more sites open in October/November, making nine in total by end 2018. With multiple variables for 2019, including number of new sites, we continue to have our forecasts, target price and rating under review until further clarification is given.

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18 Sep 18
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MDZ VRE FST ING TUNE SSY RM2 CYAN JDG EML

Small Cap Breakfast

Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due 28 Sep. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m. Offer TBA. Due Mid September Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa Breakfast Buffet

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18 Sep 18
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Invesco Asia Trust

Invesco Asia Trust - Opportunities emerging in Asian equities

Invesco Asia Trust (IAT) aims to deliver significant capital gains to shareholders over a three- to five-year horizon, primarily through investing in Asian equities, following a disciplined, bottom-up process. It has a solid long-term track record of NAV total return outperformance against its benchmark and has delivered annualised returns of 13% pa over the past 10 years. Although the primary objective is capital gains, since 2001 IAT has also consistently maintained or grown dividends, which increased 28% in FY18. The MSCI Asia ex-Japan index has corrected around 18% from its January 2018 peak and the manager believes many interesting investment ideas are emerging.

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18 Sep 18
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AEWL RSE GRN

Fidante Daily Digest

AEWL– AEW UK Long Lease – Annual report to 30 June 2018 | RSE - Riverstone Energy – Hammerhead Equity commitment | GRN – Green REIT – Preliminary results

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18 Sep 18
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Seneca Global Income & Growth Trust

Mind the (inflation) gap!

Seneca Global Income & Growth Trust’s (SIGT’s) manager, is gradually reducing the trust’s equity weighting over the next couple of years, in advance of a global recession it expects in 2020. Consistent with its view, the recent trend in developed economies has been one of falling unemployment, labour markets tightening, wage rates edging up and nascent signs that consumer prices are also on the rise. SIGT’s manager expects inflation to continue to rise, triggering further monetary tightening and ultimately recession. SIGT has recently underperformed its benchmark and global equity markets, but its manager expects its multi-asset strategy to strongly outperform these in the downturn.