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

11 Jul 18

LIBERUM: Burford Capital* - Update on Petersen - Justiciable in US Federal Courts

In a statement this morning Burford has announced that the US Second Circuit Court of Appeals affirmed the trial court decision finding the Petersen claims against Argentina and YPF to be justiciable in the United States federal courts. They also announced that due to Eton Park being dissolved they have bought the Eton Park equity stake in the YPF litigation case, however, they have sold part of the stake to leave cash exposure unchanged.

Companies: Burford Capital

10 Jul 18

AIM Market – A game of two halves?

In January, we highlighted the progress that AIM had made in H2 2017. We now review the performance in H1 2018. The latest AIM Statistics published on Friday showed that there are currently 944 companies, with 38 new issues so far in 2018, raising £781m and secondary issues raising a further £2.4bn. However, with 51 companies cancelling their listing there was a net fall in H1 2018 of 13 companies. That said, new listings appear to have accelerated recently. In Share News & Views, we comment on Braemar*, Cohort, Cropper*, GetBusy*, IG Design, Lakehouse* Porvair and Wynnstay Group.

Companies: AOR APC BMS CRPR DMTR ECSC ESC EUSP FDM GETB PCF SNX TCN W7L

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

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

16 Jul 18

JPMorgan European Smaller Companies Trust - Building on long-term positive track record

JPMorgan European Smaller Companies Trust (JESC) aims to generate long-term capital growth from a portfolio of high-quality, reasonably valued, small-cap European equities. While the European stock market, in keeping with global markets, has been more volatile year to date compared with the abnormally low levels of volatility in 2017, the managers believe that there is potential for further upside. They cite an improving European and global economy, low inflation and a benign interest rate environment, which is supportive for corporate earnings growth. JESC has a very strong investment track record, outperforming the EMIX Smaller Europe ex-UK index over the last one, three, five and 10 years. The trust currently offers a 1.7% dividend yield.

Companies: JPMorgan European Smaller Cos Trust

22 May 18

Playing to its strengths

Be Heard is building a group of digital marketing specialists, with five partner companies increasingly working together in a process that should become smoother once they are co-located. Last year’s trading issues have been resolved and new business momentum is good, with some pitches now carried out under the group banner. The management team has been reconfigured and responsibilities clarified, with unified procedures and financial reporting being put in place. Consensus sees strong revenue growth in FY18e, with operating margins starting to build, which should then be reflected in an improving rating.

Companies: Be Heard Group

13 Jul 18

Standard Life Private Equity Trust - Measured addition of domestic US fund exposure

Standard Life Private Equity Trust (SLPET) continues to follow a long-term, conviction approach to selecting primarily European private equity buyout funds, managing its exposure through the primary and secondary fund markets. Having broadened its investment policy in 2017, SLPET added exposure to a domestic US manager by acquiring a secondary position in Onex Partners IV in H118, and recently made a new primary commitment to MSouth Equity Partners IV, with the manager undertaking due diligence on a number of other US funds. SLPET has achieved above-average NAV returns among its fund of fund peers over one, three and five years, and has also outperformed UK and European stock market indices over these periods. SLPET has a competitive ongoing charge versus peers and its 3.8% yield ranks at the top of the peer group.

Companies: Standard Life Private Equity Trust

19 Jun 18

Volatility returns

When we last published the FTSE 100 was reaching an all-time high of 7877. We have subsequently seen increased volatility and some of the previous progress made by markets surrendered. The escalation of the potential trade war between the US and China and the imposition of more tariffs has unnerved markets. At home, we have continued to see M&A activity. While company results have largely been as anticipated, the outlook in some sectors looks less promising. In Share News & Views, we comment on Aortech*, ECSC*, Location Sciences*, Norcros, NWF, Tricorn* and Warpaint London*.

Companies: AOR APC BMS CRPR DMTR ECSC ESC EUSP FDM GETB LSAI SNX SPRP TCN W7L

02 Jul 18

Finding opportunities in European small-caps

TR European Growth Trust (TRG) lead manager Ollie Beckett says he and his team are still finding plenty of investment opportunities, in spite of the global bull market in equities arguably being closer to the end than the beginning. The managers focus on attractively valued smaller companies in continental Europe, where improving returns or management changes have not yet been appreciated by the wider market. After a stellar year of performance in FY17 (NAV and share price total returns of +54.0% and +75.5% respectively), recent returns have been more muted relative to the benchmark and peers, and the trust has moved from a slight premium to NAV to a discount, more in line with long-term averages. Beckett has recently taken profits in holdings where valuations looked stretched, and has increased TRG’s gearing to take advantage of a dip in investor sentiment. The stock list is towards the longer end of the historical range.

Companies: TR European Growth Trust

19 Jul 18

Outperformance and income

Under the leadership of its manager, Carl Harald Janson, International Biotechnology Trust (IBT) is building a track record of outperformance of both its benchmark, the Nasdaq Biotechnology Index and the average of its peer group (see page 13 of this note for the figures).

Companies: International Biotechnology Trust

23 May 18

Markets continue to power ahead

The FTSE 100 hit an all-time high earlier this week, surpassing the 7,800 mark as concerns over a US-China trade war receded. As Table 1 below shows, all indices have now moved firmly into positive territory for the year to date. We have continued to see significant M&A activity. With some exceptions, company results have been as anticipated, although the outlook in some sectors of the economy looks less promising than previously. In Share News & Views, we comment on Bloomsbury Publishing, Braemar Shipping*, DeepMatter*, GetBusy*, Location Sciences* PCF Group* and Sprue Aegis*.

Companies: APC BMS CRPR ECSC ESC EUSP FDM GETB PCF SNX SPRP TCN W7L

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

15 Jun 18

Focused on China’s domestic opportunity

Fidelity China Special Situations (FCSS) provides exposure to a diversified, actively managed portfolio of Chinese equities. The manager takes a bottom-up approach to stock selection, focusing on the faster-growing consumer-orientated sectors of China’s economy. FCSS’s NAV returns have been strong over the last two years, although modestly lagging its MSCI China index benchmark. This is attributed to FCSS’s tilt to small- and mid-cap stocks, which underperformed large-caps, partly due to passive capital flows into index funds. Over five years, FCSS has significantly outperformed the benchmark, as well as its open- and closed-ended peers. A new variable management fee structure, with a lower base level and no performance fee, will take effect from July 2018.

Companies: Fidelity China Special Situations

11 Jul 18

Standard Life Equity Income Trust - Accelerating dividend growth

Standard Life Equity Income Trust (SLET) aims to generate a generous level of dividend as well as long-term growth in capital and income. The board has announced that the FY18 dividend will be at least 18.7p, which is +9.4% year-on-year, considerably higher growth than the rate of UK inflation. This increase will mean that SLET’s dividend has grown for 18 consecutive years. Manager Thomas Moore is continuing to find attractively valued companies with positive fundamentals. He is confident that investment performance will improve with a change in investor focus away from high-growth, highly valued stocks, and he will be able to build on the trust’s positive longer-term record. He says the current growth style bias in the UK stock market means that reasonably priced companies delivering strong results are not being rewarded with higher valuations.

Companies: Standard Life Equity Income Trust

17 Jul 18

BlackRock Latin American Inv. Trust - New dividend and discount management policies

BlackRock Latin American Investment Trust (BRLA) is managed by Will Landers, who says that investor attitudes towards Latin American equities have changed. 2017 was a period of confidence in the region’s prospects, but now there is more scepticism about the growth outlook. However, the manager remains optimistic about potential returns from Latin American equities. In the key Brazilian economy, he cites higher domestic demand and a favourable interest rate environment, with the benchmark interest rate having more than halved to a record low level. BRLA has recently announced new dividend and discount management policies, which may lead to a narrowing in its discount over time. Dividends will now be paid four times a year, equivalent to 1.25% of the dollar-based, quarter-end NAV. As a result, the trust now offers an attractive prospective yield.

Companies: Blackrock Latin American Inv Tst

11 May 18

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

22 May 18

Executive interview - Be Heard Group

17 Jul 18

John Laing JLEN Capital Markets Day June 2018 Highlights

11 May 18

HVPE results - Yr end 31 Jan 2018

03 Nov 17

121 Oil and Gas - Fund Managers Panel

12 Feb 18

121 Mining, Cape Town - Beowulf Mining

08 Feb 17

Mariana Resources - 121 Mining Investment Cape Town 2017

12 Feb 18

121 Mining, Cape Town - Kodal Minerals

10 Feb 17

SP Angel - 121 Mining Investment Cape Town 2017

12 Feb 18

121 Mining, Cape Town - Avesoro Resources

31 Jan 18

Executive interview - Tetragon Financial Management

12 Feb 18

121 Mining, Cape Town - Ariana Resources

03 Nov 17

121 Oil and Gas - M&A Panel

08 Feb 18

121 Mining, Cape Town - Gem Diamonds

27 Jun 17

Executive interview - Seneca Global Income & Growth Trust

Latest Content

Be Heard Group

H1 shows strong revenue growth, but profit shortfall

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19 Jul 18
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BHRD DOTD EKF GOAL LID NICL SDY

Morning Song

Be Heard (BHRD LN) H1 shows strong revenue growth, but profit shortfall | dotdigital Group (DOTD LN) Another year of strong growth & cash generation | EKF Diagnostics (EKF LN) Manufacturing agreement with Oragenics Inc | Goals Soccer Centres (GOAL LN) Profit warning | LiDCO Group (LID LN) UK distribution deal with Maicuff Technology | Nichols (NICL LN) Solid interims with a 3% PBT beat | Speedy Hire (SDY LN) In line Q1 update, with ROCE continuing to move forwards |

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19 Jul 18
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HUM HNR AO/ CAR GSH AMYT TAX LID SPE BHRD

Small Cap Breakfast

CentralNic-Schedule 1 from the business operating in proprietary retail platforms selling domain names and associated web presence services including hosting and email on a subscription basis, has acquired KeyDrive S.A which constitutes a RTO. Raising £24m at 52p, combined market cap of £88.7m Trackwise—established business that manufactures specialist products using printed circuit technology. Offer TBA. Due Late July Ovoca Gold (to be renamed Ovoca Bio PLC) - RTO of IVIX, a Russian company developing a drug candidate for the treatment of female sexual dysfunctions. No monies to be raised, market cap of £8.5m, due 30 July Nucleus Financial—independent wrap platform provider . FYDec17 revs £40.36m and PBT of £5.1m. Offer TBA. Due late July. 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

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19 Jul 18
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International Biotechnology Trust

Outperformance and income

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19 Jul 18
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International Biotechnology Trust

Outperformance and income

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19 Jul 18
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Establishment Investment Trust

Asia focused, long-term growth orientated

The key objectives of The Establishment Investment Trust (ET) are capital preservation, long-term capital growth and steady growth in dividends. Launched in March 2002, the trust has a flexible mandate and a broad global investment brief. As at the end of June 2018, c.79% of net assets were invested in Asian equities, while 16.5% was invested in UK equities. Managed by Henry Thornton, who sits within Blackfriars Asset Management, ET’s focus on capital preservation implies that the trust tends to focus on high quality companies and it has a historic dividend yield of 5.3%. We continue to recommend that investors buy ET.

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18 Jul 18
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John Laing Environmental Assets Group Lt

John Laing JLEN Capital Markets Day June 2018 Highlights

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17 Jul 18

Standard Life Private Equity Trust

Putting capital to work

Following on from last year’s compelling returns, Standard Life Private Equity’s (SLPE’s) recent results show a modest NAV total return of 1.5%, over the six months to 31 March 2018, that is markedly ahead of the LPX Europe Index’s return of -4.9%. Distributions from underlying companies have remained strong, enabling further new commitments to be made, laying the foundations for future performance.

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