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

14 Aug 17

Announcement of a small placing

Tern has announced a small placing, a new investment and the intention to raise new funds for Device Authority. Given uncertainty around this we are putting our recommendation and price target under review. Clearly a successful fund raise for DA at a $36m would see an increase the NAV. Once this deal is closed we will have a clearer view of any upside.

Companies: Tern

27 Jul 17

N+1 Singer - Burford Capital - Exceptionally strong first half results

Given the previously-disclosed secondary sales of 25% of the entitlement to proceeds from the Petersen case, about which we have written extensively in the past, expectations for Burford’s first half results were high, and they have not disappointed! Revenue and profit metrics are up 130-170% on the prior year period depending on the line-item, accompanied by very strong cash proceeds. Asset management has made a good initial contribution earning maiden performance fees and there appears to be no shortage of opportunities to grow the business. We have increased this year’s adjusted PBT estimate by 69% to reflect Argentina-related developments, with a smaller upgrade for 2018. Pending finalisation and publication of our updated valuation work, we reluctantly have to keep our recommendation under review.

Companies: Burford Capital

03 Jul 17

N+1 Singer - Best Ideas 2017 - H1 Review - A strong H1, CVS Group and Renold added for H2

Today we publish our H1 review of our Best Ideas for 2017 – the document in which we also outlined our key top down and bottom up investment themes for the year. Our 12 top picks in January were Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield which have collectively outperformed the wider market by 13% YTD. At the half way stage we retire Cineworld and Hill & Smith from the portfolio (both were moved from Buy to Hold in May after outperformance), to be replaced by CVS Group and Renold. We also give a brief update on the rationale for our picks.

Companies: IQE RNO SDL CVSG ELM REDD RENE MYSL SERV HRI SFR RTHM CINE HILS

07 Aug 17

Investment performance back on track

Standard Life Equity Income Trust (SLET) aims to generate above-average income and real capital and income growth from a relatively concentrated portfolio of c 50-70 UK equities. Since 2011, SLET has been managed by Thomas Moore, who says that the trust’s strong revenue growth is leading to higher dividend growth. The board has indicated that the FY17 annual dividend will be at least 9.1% higher than in FY16. Following a tough period of relative performance surrounding the Brexit vote, as companies with domestic businesses underperformed those with overseas operations, the manager is now more positive on the outlook. SLET’s performance is improving versus both the FTSE All-Share benchmark and its peer group. Moore is placing greater emphasis on higher-growth smaller companies that are reasonably valued and have faster-than-average dividend growth.

Companies: Standard Life Equity Income Trust

03 Jul 17

The Monthly July 2017

As we approach 3rd January 2018 and the coming into force of the MiFID II legislation which changes the landscape for research, we are beginning to see some of the practical implications and complications. Brokers are in the early stages of working out how to structure charging for research, asset managers have already begun cutting their brokers’ lists and a model code of conduct for Research Payment Accounts for institutions has been published.

Companies: ABZA AGY APH ARBB AVCT BUR CMH CLIG COS DNL EVG MCL MUR NSF ODX OXB PPH NIPT PHP PURP RE/ SCLP SPH VAL

03 Aug 17

EQUITY RESEARCH

The TR European Growth Trust (TRG) price has grown at an annual compound rate of 21% in the past eight years since March 2009, reflecting the solid growth of the smaller/ medium corporate sectors in the EU (ex-UK) which is the focus of TRG’s investment interest. Conceivably there will be challenges for the EU post-Brexit. However, as the Quantitative data show, the TRG managers have extracted impressive levels of value and this has been dramatically evident against the benchmark Euromoney index since late-2014. With a low yield, it is mainly this quality which investors will be backing to maximise the performance of the fund’s target sectors.

Companies: TR European Growth Trust

10 Feb 17

Taurus Funds Management - 121 Mining Investment Cape Town 2017

12 Jun 17

Vietnam Opportunity Fund (VOF)

10 Feb 17

SP Angel - 121 Mining Investment Cape Town 2017

14 Mar 17

121 Mining Investment Conference Cape Town 2017

15 Jun 17

121 Group - 2017 Highlights New York

10 Feb 17

Strandline Resources Limited - 121 Mining Investment Cape Town 2017

21 Nov 16

Defenx - Update at 121 Tech Investment

10 Feb 17

Bezant Resources - 121 Mining Investment Cape Town 2017

20 Jul 17

Capital Network's Riccardo Lowi on BB Healthcare Trust PLC

10 Feb 17

Battery Minerals - 121 Mining Investment Cape Town 2017

01 Jun 17

Introduction to Tern plc (TERN)

10 Feb 17

Berkeley Energia - 121 Mining Investment Cape Town 2017

10 Feb 17

Walkabout Resources - 121 Mining Investment Cape Town 2017

10 Feb 17

Manas Resources - 121 Mining Investment Cape Town 2017

21 Nov 16

CyanConnode - Update at 121 Tech Investment

Latest Content

Tern

Announcement of a small placing

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14 Aug 17
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Schroder Asiapacific Fund

Strong returns from established Asia specialist

Schroder AsiaPacific Fund (SDP) invests in markets across the Asia Pacific region (excluding Japan) with the aim of achieving capital growth. Managed by Matthew Dobbs since launch in 1995, the trust is the largest and among the most liquid in its peer group. It has produced top-quartile NAV total returns over one, three and five years, also beating its benchmark MSCI AC Asia ex-Japan index over one, three, five and 10 years in both NAV and share price terms. In spite of this, it trades at a wider discount than the peer group average. The manager focuses on companies with visible earnings growth, strong management, sustainable cash flows and valuation support. While sector and geographical weightings are an output of stock selection, there is a significant allocation towards Greater China and the information technology sector. Reflecting the growing level of dividends from Asian companies, SDP has a yield of just over 1%.

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11 Aug 17
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Small Cap Breakfast

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11 Aug 17
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Blackrock Greater Euro Inv Tst

New co-manager appointed in June 2017

BlackRock Greater Europe Investment Trust (BRGE) aims to generate capital growth from a relatively concentrated portfolio invested across the greater European region. In June 2017, it was announced that Stefan Gries would replace Vincent Devlin as co-manager. He will continue to adopt BRGE’s flexible bottom-up stock selection approach, drawing on the wider resources of BlackRock’s European and emerging markets equity teams, but is reducing the number of holdings and intends opportunistically to make fuller use of the emerging European allocation. The trust is referenced against the FTSE World Europe ex-UK index and its NAV total return has outperformed over three and 10 years and is broadly in line over five years, while lagging over the last 12 months. Although the primary aim is capital growth, BRGE has a progressive dividend policy. Its current dividend yield is 1.7%, which is in line with its peer group average.

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11 Aug 17
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Tetragon Financial Group

Positive returns from all asset classes in H117

Tetragon Financial Group (TFG) reported a 2.8% NAV total return for H117, with positive contributions made by all asset classes in the portfolio. Although below the target 10-15% range, annualised return on equity for the half year of 7.2% was ahead of the 6.3% achieved in 2016. Tetragon’s share price total return was 7.4% for the six months to end-June 2017, with the discount narrowing by 2.1pp to 36.4% over the period. Dividends continue their steady progression, with the Q217 dividend increased by 4.5% from Q216 to US$0.1750 per share, and Tetragon’s 5.3% dividend yield ranks as the second highest in the Flexible Investment sector.

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10 Aug 17
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Qatar Investment Fund

Navigating through defensively

Geographically tiny Qatar managed to capture the world’s attention and media stage earlier in this generally quiet summer with four Arab countries cutting diplomatic and trade relations with Qatar. In the meantime QIF has resisted the negative news well. Year to date, it outperformed the benchmark by nearly 4% posting c.7% negative return. This year the falling markets have made the defensive characteristics of the fund visible.

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09 Aug 17
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JP Morgan Asian Investment Trust

EQUITY RESEARCH

The expanding economies of the Asia Pacific region create exciting investment opportunities although enthusiasm must be slightly tempered by the risks typically associated with evolution. The management team has achieved a consistently solid investment performance over several years and shown itself capable of dealing with the challenges that arise inevitably. At least partial exposure to the Asian bloc makes sense for investors looking for global diversity and a reasonable level of yield.

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09 Aug 17
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ADL SEE GMR HSP MPH FIPP FFWD ACT FFX

Small Cap Breakfast

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08 Aug 17
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DKE PTSG C21 IMTK TRT IRR RLD NET DFX OXB

Small Cap Breakfast

OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m. | Wilmcote Holdings plc—Sch1 from the Company established with the objective of creating value for its investors through the acquisition and subsequent development of target businesses in the downstream and specialty chemicals sector. Offer raising £15m at 120p with market cap of £25m. Expected 17 August 2017 | Andes Energia PLC—Sch1 on admission the Company will change its name to Phoenix Global Resources plc will be an Argentinian independent oil & gas exploration and production company, offer TBC but market cap to be £844m and admission date 10 August 2017 | Verditek PLC—Sch1 update from holding company in the clean technology sector with subsidiaries operating within what it considers are emergent and fast growing sectors (industrial treatment of solids, air purification, water de-odourisation, zero emission, low cost energy), offer raising £2.75m at 9p with market cap of £16.9m. Admission 10 August 2017 | Strix Group PLC—Sch1 from the Company involved with the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration. Offer raising £190m at 100p with market cap of £190m admission date 8 August 2017. | Xpediator Plc—Sch 1 from the holding Company for an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a strong presence in Central and Eastern Europe. Offer details TBC, expected Admission early August 2017. | Altus Strategies—African focused natural resource Company. Offer raising £1.1m at 10p with market cap of £10.7m. Expected 10 August 2017 | Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017

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