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 Feb 19

Share & share alike

Roses are red – markets are blue! The rally since the start of the year resumed this week, after a pull-back last week. The FTSE 100 has risen due to the weakness of sterling and the impact on its dollar-earning constituents. More domestically-oriented indices have also risen but lagged more recently. The latest Brexit twist is due later with a statement to Parliament on the negotiations. Company news continue to dominate the morning headlines and amendment votes the evening ones. In Share News & Views we comment on DCC, EU Supply* FireAngel*, Location Sciences*, Northbridge* and NWF.

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

05 Feb 19

THE MONTHLY February 2019

This Investment Research Paper addresses the issue of renewable power generation in the UK and in mainland Europe, which – after the deep-seated financial crisis of 2008/09 and the ensuing recession – now has better prospects of achieving critical mass. It also considers investment perspectives.

Companies: OPM AVO AJB AGY ARBB AVCT DISH BUR CLIG CSH DNL DPP GTLY GDR HAYD KOOV MCL MUR NSF OXB PCA RE/ REDX STX SCE SIXH TRX TON VAL VTA W7L

25 Jan 19

LIBERUM: Burford Capital* - Unsurpassable in an industry growing 3x

To understand Burford you have first to appreciate the growth of litigation finance, then that Burford is without peer. We estimate the industry is currently managing $15bn in assets and believe this can grow to $50bn.

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

15 Feb 19

The Biotech Growth Trust - Industry backdrop remains favourable

The Biotech Growth Trust (BIOG) is managed by Geoff Hsu and Richard Klemm at OrbiMed Capital, one of the leading global healthcare asset managers. The year 2018 proved to be tough for the trust’s performance as biotech companies delivering negative news were heavily penalised, while those delivering good news went unrewarded. However, the managers are optimistic about BIOG’s prospects. They cite a rich industry innovation pipeline that includes a series of technologies with multi-billion-dollar revenue potential; a favourable regulatory environment; and a higher level of deal activity, including major pharma company Bristol-Myers Squibb’s recent bid for Celgene (one of BIOG’s largest holdings) at a significant premium to its pre-bid share price.

Companies: The Biotech Growth Trust

12 Feb 19

Shifting sentiment

Herald Investment Trust (HRI) is approaching its 25th birthday. HRI’s manager, Katie Potts, has been there since launch, delivering considerable outperformance of equity markets. She has seen significant swings in sentiment towards the technology sector over that time.

Companies: Herald Investment Trust

19 Dec 18

LIBERUM: Burford Capital* - New funding arrangements add c. 13% to profits over the next 4 years, but are the start of something much bigger

Burford has announced superior new funding arrangements to facilitate its next $1.6bn in litigation finance investments. $300m will come, as now, from Burford’s balance sheet, recently strengthened by the equity raise.

Companies: Burford Capital

08 Jan 19

All rise!

The UK legal service sector looks intrinsically attractive to investors, with its inherent high added-value, resilient growth through all but the very worst of economic times and fragmented nature. Five companies representing about 1% of the huge UK legal sector are all we have seen so far on the UK stock market and this is clearly going to grow, as listed law firms drive home their advantages and expand. Their UK domestic focus has brought share prices under pressure which looks wrong given the outlook, offering a good buying opportunity. We take this opportunity to initiate coverage of Gateley (Corporate) which has achieved great success since IPO but paradoxically trades at an anomalous discount to its peers.

Companies: GTLY BUR DRV MUR GOR KEYS RBGP

13 Feb 19

Supermarket Income REIT - Visible income and growth potential

Supermarket Income REIT (SUPR) reported strong H119 earnings growth on the back of its growing portfolio, contracted RPI-linked rental uplifts, and well-controlled costs. The Q219 DPS was increased by 3.2%, in line with RPI. Rental growth also drove revaluation gains, sufficient to offset property acquisition costs in the period. EPRA NAV total return in the six-month period was 3.1% or an annualised 6.3%.

Companies: Supermarket Income Reit

04 Aug 15

Enduring value opportunity

We believe the value opportunity in Volta’s shares remains underappreciated by the market given the company's stellar track record and the benign credit outlook. Volta continues to outperform peers (+11.0% NAV total return in H1 2015 vs. +4.8% for the closest peer). We believe the flexibility to access asset classes offering relative value opportunities gives it an edge over peers. We upgrade our TP to €8.55 (Old €7.65) and maintain our BUY rating.

Companies: Volta Finance

10 May 18

Diversified alternative income and growth portfolio

Tetragon Financial Group (TFG) is a specialist closed-ended investment company, which aims to provide stable returns across economic and asset class cycles by investing in a diversified portfolio of selected alternative assets. Helped by the uplift to NAV per share from a US$65m tender offer in December 2017, Tetragon delivered a 9.0% NAV total return in US dollar terms in 2017, although currency moves held back returns in sterling terms. Tetragon’s share price discount to NAV has widened in 2018, with the share price declining along with the broader stock market while NAV remained stable, increasing the scope for a narrowing discount to lift future shareholder returns. The total dividend for 2017 progressed 4.1% higher to US$0.70, giving Tetragon a sector-leading 5.6% yield.

Companies: Tetragon Financial Group

12 Jun 18

Robustly positioned, with a strong track record

HarbourVest Global Private Equity (HVPE) aims to provide shareholders with access to the best private markets opportunities globally, through investing in a portfolio of HarbourVest funds. HVPE’s portfolio is broadly diversified by underlying manager, vintage, strategy, stage and regional exposure. Its recent performance has been strong in its US dollar functional currency, with a 16.2% NAV total return in FY18, although currency moves have weighed on its performance in sterling terms. After three years of strong portfolio distributions, the 2018 commitment plan has been drawn up with a view to ensuring that HVPE moves closer to a fully invested position over the next two to three years.

Companies: Harbourvest Global Private Equity

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 PHP RE/ REDX SCLP SCE SIXH TRX TON VAL W7L OXB

06 Aug 18

Tetragon Financial Group - Improved returns but discount has widened

Tetragon Financial Group (TFG) delivered a strong relative performance in H118, with its +4.4% NAV total return comparing with the -0.1% and -0.7% US dollar total returns of the MSCI AC World and FTSE All-Share indices. The portfolio has been substantially diversified away from collateralised loan obligations (CLOs – now only 16% of NAV) across a range of other alternative asset classes in recent years, accompanied by lower returns. However, with positive returns from all but one asset class in the half year, Tetragon’s return on equity (ROE) moved up to an annualised 10.5% in H118, back within its long-term 10-15% pa target range. Recent discount widening appears inconsistent with Tetragon’s NAV performance, as well as its progressive dividend and peer group-leading 5.5% yield.

Companies: Tetragon Financial Group

30 Oct 18

HarbourVest Global Private Equity - Diverse and selective

HarbourVest Global Private Equity’s (HVPE) first-half results showed good progress in NAV (+6.8% in US$ terms), ahead of its listed equity benchmark and a private equity index, both of which were negative over the period. Looking ahead, HVPE notes the high valuations prevailing in the private market and the risks of further listed market volatility. In this environment, the portfolio’s diversification and HarbourVest’s experience in manager selection are likely to be particularly valuable attributes.

Companies: Harbourvest Global Private Equity

11 May 18

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

25 Oct 18

Supermarket Income REIT (SUPR) at ShareSoc October 2018

15 Feb 19

121 Mining, Cape Town - Emmerson - Presentation

01 Oct 18

Bitesize briefing - Fidelity Japan Trust

05 Feb 19

Tetragon

14 Sep 18

Downing Strategic Micro-Cap Investment Trust plc

26 Jan 19

International Biotechnology Trust (IBT) Presentation at MELLO London November 2018

17 Jul 18

John Laing JLEN Capital Markets Day June 2018 Highlights

30 Jan 19

Executive interview – Seneca Global Income & Growth Trust

22 May 18

Executive interview - Be Heard Group

19 Nov 18

Executive interview - Canadian General Investments

19 Feb 18

Gresham House Strategic plc - An Introduction

09 Oct 18

Supermarket Income REIT Investor Overview

14 Feb 18

Executive interview - Canadian General Investments

08 Feb 19

Bitesize briefing - Murray Income Trust

Latest Content

Renewables Infrastructure Group

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

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19 Feb 19
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Renewables Infrastructure Group

Fidante Daily Digest

TRIG – Renewables Infrastructure Group – Finals to 31 December 2018

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19 Feb 19
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SOHO CSH TORO

Fidante Daily Digest

Triple Point Social Housing – Regulatory judgment on Inclusion | Civitas Social Housing – Regulatory judgment on Inclusion | Chenavari Toro Income – Tender issuance results | NB Distressed Debt – Sale and potential distribution

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18 Feb 19
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Calculus VCT - CLC

CALCULUS VCT PLC

The VCT aims to generate sufficient returns to maximise tax-free dividends while giving capital growth over the medium to long term. The current fundraising is for Ordinary shares, which will have an income target of 4.5% of NAV. Returns will be generated by investing in a portfolio of mainly unquoted companies across different industries. The investment criteria include a target IRR of at least 20% p.a. for each investment. The intention is for individual investments to exit in three to seven years, with the VCT itself being a continuing entity. The current offer is to raise £10m, with a £5m over-allotment facility.

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18 Feb 19
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Emmerson

121 Mining, Cape Town - Emmerson - Presentation

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15 Feb 19

The Biotech Growth Trust

The Biotech Growth Trust - Industry backdrop remains favourable

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15 Feb 19
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GR1T TORO AIR

Fidante Daily Digest

Grit Real Estate Income – Interim report | Chenavari Toro Income – Tender offer results | Aircraft leasing – Airbus announcements

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14 Feb 19
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SEE VRP ADL RST HGM TSTR OSI BHRD XPP AFHP

Small Cap Feast

Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019.

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14 Feb 19
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Supermarket Income Reit

Supermarket Income REIT - Visible income and growth potential

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13 Feb 19
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PSHD UKW MERI SYNC

Fidante Daily Digest

PSH* – Pershing Square Holdings – Dividend payments | UKW – Greencoat UK Wind – Results of placing | MERI – Merian Chrysalis – Portfolio update | SYNC – Syncona - Quarterly update

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