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

04 Jun 19

THE MONTHLY June 2019

Companies: AZN AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR HAYD KOOV MCL MUR PCA PHP RE/ REDX STX SIXH TON SHED VAL VTA W7L

11 Apr 19

Quarterly Research Outlook

We’re just over three months in to 2019 and we’ve seen a 10% UK market rally, retracing much of the Q4 decline, such is the nature of fickle market sentiment. That said, many of the issues we wrote about three months ago that were impacting markets remain: notably Brexit, trade wars, geopolitics and global monetary policy. The 2019 rally thus far feels somewhat fragile, with competing forces of optimism on a potential trade deal which could underpin the rally, against the deterioration in underlying economic data that could ultimately undermine the recent market gains. In this context, we look at what the lead indicators and the market are telling us about the industrial cycle and the stocks most exposed to various industrial trends. The Q4 derating in short cycle industrials and autos had been vicious and while these sectors have seen a more solid footing in 2019, with earnings downgrades being priced in, it will likely take a trough in lead indicators before short cycle stocks can start to perform again and re-rate relative to the market.

Companies: ARS CYAN HYR LIT SOM ABBY AMS AMER ANX ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE DTG DEMG EMR FPO FST GTLY GENL GOR GRI GEEC HDY HMI HAYD HEAD HILS HTG HUR IBPO INDI JHD JOG KEYS KCT KGH LAM LOK MACF MNO MANO MOD MKLW OXIG PCA PANR PARK PGM PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG TRAK TRI VNET VTC ZOO ZTF

12 Jun 19

Worldwide Healthcare Trust - Managers bullish on healthcare sector outlook

Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk at OrbiMed, a major global specialist healthcare investor. They remain constructive on the outlook for the sector, citing strong industry fundamentals, including a ‘golden era’ of innovation, a favourable regulatory environment and undemanding company valuations. There is also the potential for further industry mergers and acquisitions, which should be supportive for the sector’s performance. While WWH suffered a tough period of performance in H218, it maintains a very strong long-term record; over the last five and 10 years, it has generated NAV and share price total returns between 14.6% and 19.2% pa and has outperformed its benchmark over these periods in both NAV and share price terms.

Companies: Worldwide Healthcare Trust

27 Mar 19

Rally seen in the first quarter stalls

Parliamentary and Brexit developments continue to hold centre stage, although the precise path forward remains as unclear as ever. The uncertainty over Brexit, worries over a possible slowdown in the US and the outlook for global economic growth generally have all contributed to the recent falls in markets. While the rally seen since the start of the year has petered out, most indices have still made progress. In Share News & Views we comment on Bloomsbury Publishing, Bonhill Group*, Braemar Shipping Services*, Burford, Clarkson, LightwaveRF*, Marshall Motor Holdings and Synectics*.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LWRF LSAI NKTN PCF SNX TCN VRE W7L

28 Mar 19

Litigation, litigation, litigation

Within this note we look to build upon our existing legal sector coverage of Anexo*, Gordon Dadds*, Gateley, Knights, Keystone, Rosenblatt and NAHL to include the litigation funders Burford Capital, Manolete Partners and Litigation Capital Management.

Companies: ANX BUR IMF JIL LIT MANO RBGP

13 Jun 19

Finsbury Growth & Income Trust - A further step-up in performance

Finsbury Growth & Income Trust (FGT) has been managed by Nick Train since 2001. His strategy of running a highly concentrated portfolio (currently 20 names) – focused on just three business areas – has proved to be very successful, as illustrated in the 10-year relative NAV chart below. FGT has outperformed the FTSE All-Share Index over the last one, three, five and 10 years, helped by a recent step-up in capital appreciation, and has outpaced the performance of all of its larger-cap peers in the AIC UK Equity Income sector over these periods. Train remains optimistic about the outlook for selected UK equities, focusing on high-quality companies that can grow regardless of the stage of the economic cycle.

Companies: Finsbury Growth & Income Trust

24 May 19

Secure 6%+ yield, reversion driving NAV growth

There has been strong NAV growth in H2, +7% to 138p, with the shares now trading on a 20% discount to our FY20e 152p EPRA NAV. The portfolio is 100% occupied with a current 5.3yrs WAULT. We believe ULR should trade at least at FY20e NAV given the secure and growing 6%+ yield: implying a +25% TSR from the current share price. Active management of single-let assets is delivering value, and capturing reversion. If delivered in full with no yield compression, this implies 175p EPRA NAV – a further +25% to NAV.

Companies: Urban Logistics REIT

11 Jun 19

Strong recovery potential?

CQS Natural Resources Growth and Income’s (CYN’s) managers believe the mining sector is only in the early stages of a recovery; real demand for commodities is on an upwards trend; and a reduction in capital expenditure has seen production capacity removed from the market. If they are correct, all of these should be supportive of higher commodity prices in the future and support a sustained recovery in resource and mining stocks.

Companies: City Natural Resources High Yield Trust

13 Jun 19

Aberdeen New Thai Investment Trust - Long-established Thailand equities specialist

Aberdeen New Thai Investment Trust (ANW) aims to deliver a high level of long-term capital growth, with the manager following a rigorous bottom-up, stock selection driven investment process. The trust has delivered strong absolute returns over the past 10 years, with an annualised NAV total return of 18.1%. Over the near term, the manager expects the ongoing US-China trade dispute to weigh on Thai equity market sentiment. However, it believes longer-term prospects remain very attractive. The portfolio is shifting in favour of small caps, where the manager can find less well-discovered, high-quality companies that are mispriced relative to their long-term intrinsic value.

Companies: Aberdeen New Thai Investment Trust

26 Feb 19

Share & share alike

We have seen a continuation of the rally evident so far this year. The factors are familiar with greater optimism regarding US-China trade talks. At home, the path to Brexit remains unclear as D-day looms. The possibility of a delay has increased. The company reporting season continues to highlight winners and losers with the majority of results in line. We have also seen an uptick in corporate M&A. Results set the morning agenda and Brexit votes the evening one. In Share News & Views we comment on AorTech International*, APC Technology*, DeepMatter*, Golden Ocean Group and P&O Ferries/DP World.

Companies: AOR APC BONH BMS CTG CRPR DMTR ESC EUSP FDM FA/ LSAI NKTN PCF SNX TCN VRE W7L

25 Mar 19

LIBERUM: GLI Finance* - 13% growth at Sancus BMS

The fundamentals of Sancus BMS are good and growth was 13% LFL, with UK and Ireland also set now to grow. That is the prize. 2019 will however be a reorganisation year as on-balance sheet lending is reduced and the ZDPs are repaid, meaning Sancus BMS revenue expectations come down.

Companies: GLI Finance

13 Mar 19

LIBERUM: Burford Capital* - Beats, evolves, discloses more

$1.1bn of capital deployed, when we bullishly expected $0.6bn. Burford has also beaten profit expectations by 25%, with higher ROIC, a broader range of solutions for the legal industry and now greatly enhanced disclosure, even down to individual investments.

Companies: Burford Capital

19 Feb 19

LIBERUM: The Renewables Infrastructure Group - Strong 2018 with more to come

TRIG's 11.6% NAV total return in 2018 benefited from a 0.3% reduction in portfolio discount rates, increased power price forecasts and operational enhancements. Dividend cover improved from 1.1x to 1.25x in the year (adjusted for scrip dividends), a result of an uplift in achieved power prices.

Companies: Renewables Infrastructure Group

03 May 19

Burford Capital - Time to Top Up

We believe recent share price weakness presents an opportunity to enter the market leading litigation funder at an attractive valuation. Current market concerns surrounding an overstated ROIC and aggressive fair value accounting are unfounded, in our view. We reiterate our Buy rating and 2,300p price target.

Companies: Burford Capital