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.

10 Jan 20

THE MONTHLY January 2020

The Office for National Statistics (ONS) is due to publish its most up-to-date survey on share ownership in mid-January, which identifies the beneficial owners and decision- makers of the stock market. Hardman & Co has worked together with the share analysis service, Argus Vickers, to jointly produce its own survey, which anticipates the conclusions of the ONS survey but goes into much greater detail. Our work does not use a sample of 200 quoted companies as the ONS historically has, but rather includes everyUK quoted company. The ONS samples share registers every two years; our study uses six-monthly data points. Our survey also extends to shareholders on NEX; the ONS does not.

Companies: AVO AGY ARBB BUR CMH CLIG DNL FLTA GDR MCL NSF PCA PIN PHP RECI RMDL SCE SIXH SHED VTA

13 Jan 20

Allenby Capital TMT Update - 13.01.20 (ECSC.L, TERN.L, MWE.L)

ECSC Group plc* (ECSC.L, 145p/£13.0m) | Tern plc* (TERN.L, 9.5p/£27.0m) | MTI Wireless Edge Ltd* (MWE.L, 39p/£33.8m)

Companies: ECSC TERN MWE

07 Jan 20

Burford Capital

Positive corporate governance developments

Companies: Burford Capital

21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP ESRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

13 Jan 20

Henderson Far East Income - Access to Asian growth with solid 6% yield

Henderson Far East Income (HFEL) performed strongly in 2019, unusually outperforming a rising market while continuing to achieve a well-covered dividend and a yield in excess of 6%. The trust, managed by Mike Kerley and Sat Duhra at Janus Henderson Investors, has a relatively concentrated (c 50 stock) portfolio that is split roughly equally between high-yielding stocks and those offering superior dividend growth prospects. Drivers of positive performance during the year included stocks from both sides of the portfolio, with limited impact from the US-China trade dispute given HFEL’s focus on domestic rather than export stocks. The managers are optimistic for a recovery in earnings and continued growth of dividends in the Asia Pacific region during 2020.

Companies: Henderson Far East Income

16 Jan 20

Fidelity European Values - Disciplined process driving outperformance

Fidelity European Values (FEV) is managed by Sam Morse, who selects stocks on a bottom-up basis, focusing on quality companies with strong balance sheets that are able to grow dividends over the long term. He notes that investor concerns that affected the market in 2019 are abating: central banks are very supportive; a resolution to the US-China trade war is looking more likely; and within Europe, there is the prospect of fiscal stimulus to support economic growth. While there is potential for a rotation in market leadership towards cyclical stocks, which could put the fund’s relative performance under pressure, the manager is ‘sticking to his knitting’, and remaining disciplined, rather than shifting his portfolio exposures in an effort to try to ‘time the market’.

Companies: Fidelity European Values

20 Dec 19

The gift that keeps on giving

The industrial and logistics sector has been on a tremendous run over the past five years or so. It is hard to think now, given the current dynamics in the property industry, that retail and offices were the sectors of choice for investors for many years with industrial cast aside by most.

Companies: ASLI LMP SGRO SMP BBOX BOXE SHED WHR

08 Oct 19

Profits are only profits when they are realised

Herald Investment Trust (HRI) generated strong positive returns in the first half of 2019, with marked outperformance by both its UK and US portfolios of their local market indices. Both a general market recovery and a recovery in global technology stocks have helped, but HRI’s UK and US portfolios have both benefitted from a wave of takeover activity, allowing HRI to lock in significant gains on these positions.

Companies: Herald Investment Trust

17 Oct 19

Strong evidence that fair value is fair

In the aftermath of a dramatic period, Burford has provided additional disclosure that greatly improves understanding of its fair value process and its conservatism. The timing of when fair value adjustments are made has been well explained previously, with clear objective criteria. How the amount of each valuation change is determined has also had some clarification, with an objective core overlaid by adjustments that involve some judgement. Detailed data have also been provided on the 20 concluded cases that have had adjustments of $1m or more. All this adds considerably to the belief that Burford’s fair value is prudent.

Companies: Burford Capital

26 Nov 19

History of value added to portfolio by holding Pantheon

In our 6 September initiation report on Pantheon International (11.9% average annual NAV growth since 1987, PIP, ticker PIN), we noted i) PE funds earn better returns than quoted companies, ii) PIP is investing in the right parts of the PE market, iii) the benefits from being in the Pantheon family, and iv) a structured fund selection process. PIP gives investors access to the whole PE market, with strong corporate governance. In this note, we explore the impact of holding PIP on a range of portfolios, across a range of scenarios; we conclude that performance would be improved and significantly less volatile. There are risks (see below), but the discount makes the risk/reward anomalous, in our view.

Companies: Pantheon International

19 Dec 19

VinaCapital Vietnam Opportunity Fund - Strong deal flow underlines private markets focus

VinaCapital Vietnam Opportunity Fund (VOF) is a well-established, FTSE 250 Vietnam specialist fund that invests primarily via privately negotiated deals, with four major deals recently signed or close to completion. The manager takes a fundamental, bottom-up approach and invests on a medium-term view, which leads to many holdings becoming listed while in the portfolio. Longer-term NAV total returns have been good; VOF’s 10.9% pa return over 10 years compares favourably with the VN Index’s 10.5% pa return. The manager expects global stock markets will remain volatile – influenced by prospects for US interest rates and the US administration’s focus on trade protection – which he believes increases the importance of private deal sourcing in generating attractive returns.

Companies: Vinacapital Vietnam Opportunity Fund Ld

08 Jan 20

Full house

This time last year the team at Kepler Trust Intelligence (KTI) chose their personal ‘top picks’ within the investment trust universe for 2019. The aim was for each member of the team to choose the trust they believed would perform best from an investor’s point of view; i.e. in share price terms rather than NAV. Any trust could be selected, regardless of whether it was equity-focused or not. Overall the year was a prosperous one for those brave enough to hang on throughout. The MSCI World Index (in sterling terms) rose by 22.4%, with the US the best-performing major market. The S&P 500 rose by 26.4%, while the FTSE 100 and FTSE 250 were up by 17.3% and 28.9% respectively. The DAX and MSCI Emerging and EURO STOXX 50 also increased. In terms of currencies the pound sterling ended the year roughly where it started relative to the dollar. This has masked what has actually been quite a volatile period for both currencies. The same pattern has been seen with sterling versus the yen, which started the year at around 140 and has ended at a similar level, around 143. What may surprise some investors is that sterling has appreciated relative to the euro by 5.9%; once more not without volatility, and with much of the gain coming in the second half of the year.

Companies: KIT STS AJOT TRG MWY

15 Jan 20

The staff of life

Urban Logistics invests in ‘mid-box’, ‘last-stage’ distribution warehouses. Latest interim results indicate further strong progress, with EPRA NAV per share up 12% in 12 months and EPS and dividends up 25%. Positive market demand for this asset class is broadly based, including e-commerce fulfilment. Management has proved asset values in the market via a series of asset disposals, achieving blended 58% average total property returns since IPO. Supply of such assets is limited. Also, Urban Logistics’ assets contain essential staff of life for the conurbations they service. Thus, we argue that the asset values are particularly conservatively stated.

Companies: Urban Logistics REIT

07 Jun 16

The Cybersecurity Rebellion: “No, I’m Spartacus!”

Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.

Companies: BA/ BVC BLTG CHRT 9537 CNS DFX ECK EXPN GBG IGP MPAY NCC OSI SCH TERN

06 Nov 18

BioPharma Credit - Oversubscribed offering fuels further growth

BioPharma Credit (BPCR) provides access to a diverse portfolio of debt instruments for life science companies, consisting mainly of senior secured loans at present. Structural changes in the industry and high M&A activity constitute positive drivers of BPCR’s new debt investments. Despite increased life sciences equity and convertible bonds issues, the trust has invested c US$640m so far this year (and has outstanding commitments of US$140.5–160.5m). The trust has recently completed a private placement, with US$305m of final gross proceeds (after being upsized to US$200m from US$150m). Post the Amicus Therapeutics deal and advancing the second tranche of the Tesaro loan, BPCR visibly increased its exposure to floating-rate loans to c 62%.

Companies: Biopharma Credit

18 Dec 19

All FastForward Innovations investments 'approaching key milestones in 2020'

10 Dec 19

Fund manager interview - UIL

23 Dec 19

Zoetic International has laid platform for uplift in CBD revenues believes CEO Tulloch

27 Nov 19

Zoetic International busy in the run-up to Christmas with new products in the UK & US

18 Dec 19

KRM22 PLC looking to accelerate organic growth in 2020

27 Nov 19

CVC Credit Partners European Opportunities

18 Dec 19

Polar Capital Global Healthcare Trust (PCGH) Mello London November 2019

25 Nov 19

Emmerson PLC's Hayden Locke highlights attractive economics for SOP production

23 Dec 19

Zoetic International has laid platform for big uplift in CBD revenues believes CEO Tulloch

21 Nov 19

Executive interview - Seneca Global Income & Growth Trust

11 May 18

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

19 Nov 19

Executive interview - Canadian General Investments

17 Dec 19

RM Secured Direct Lending to see NAV gain following investment prepayment

18 Nov 19

ROBO Global team discuss its focus on innovation and key developments in AI

14 Oct 19

Executive interview - The Scottish Investment Trust

Latest Content

Fidelity European Values - Disciplined process driving outperformance

Fidelity European Values

16 Jan 20
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Fidelity European Values - Disciplined process driving outperformance

Fidelity European Values

16 Jan 20
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The staff of life

Urban Logistics REIT

15 Jan 20
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The staff of life

Urban Logistics REIT

15 Jan 20
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Emmerson infrastructure development means huge cost saving

Emmerson

14 Jan 20

Emmerson infrastructure development means huge cost saving

Emmerson

14 Jan 20

Small Cap Feast

Calisen Group. Potential Intention to Float. Owner and manager of essential energy infrastructure assets . Consolidated FY Dec 18 revenue £162.1m and operating profit £25.4m. Raising up to £300m in primary plus partial vendor sale. The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February. Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO. The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn. First day of dealings expected early February.

MJH FIPP PGH BOOM TPFG OSI D4T4 OMG SAV RMM