As part of our commitment to providing Investment Research, we have published our regular monthly update on the Global Economy & Listed Investment Companies.
In this issue
- Performance – Small-cap strategies performed particularly well, while Gold is seen as a hedge against the monetary debasing taking placing, as central banks provide record levels of stimulus. Golden Prospect Precious Metal led NAV returns over April. On the negative side, property is particularly affected by the lockdown, with swathes of tenants not able to meet rent obligations;
- Discounts/premiums – Augmentum Fintech‘s discount narrowed with fintech seen as relatively resilient. US-focused Gabelli Merger Plus+’s main two sector exposures are technology and healthcare, both of which have been among the best performers. Discounts in the private equity sector had been widening before the pandemic, helping to explain the presence of a few private equity funds in the ‘getting more expensive’ section, as investors looked for value. Discount widening was led by the debt, property and financials sectors. A number of debt funds have suspended dividends.
- Money in and out – The big story was Supermarket Income REIT raising £139.9m – nearly twice its target. Supermarkets should have far fewer problems meeting rent obligations. There is unmet demand for income, with the real estate, equity income and debt sectors under pressure; and
- Major news stories – Polar Capital Global Financial’s life was extended indefinitely following a shareholder vote