Prices and Markets

A collation of recent insights on markets and economies taken from the comments made by chairmen and investment managers of investment companies – have a read and make your own minds up. Please remember that nothing in this note is designed to encourage you to buy or sell any of the companies mentioned.... Read more Roundup Growing optimism around US-China trade negotiations saw US stocks register their best monthly performance since June. The dollar benefitted from this uptick in demand...

In this issue Following a lacklustre October, risk-appetite rose over November, reflected by both the level of the NAV and price returns as well as the prevalence of growth-focused funds in the tables. Sectorally, biotech strategies had a strong month, led by Biotech Growth and International Biotechnology. It was also a good month for UK equities with several UK smaller companies trusts, led by Montanaro UK Smaller Companies, JPMorgan Smaller Companies and Standard Life UK Smaller Companies, taking up positions in the outperformers table; Money in and out –...

Henderson Diversified Income Trust – Soft landing likely… …but caution is required. The managers of Henderson Diversified Income (HDIV) stuck to their guns in the face of a consensus view of rising interest rates and inflation. This stance, and their focus on high-quality credits, has been rewarded in 2019, as central banks around the world have cut interest rates to tackle a slowing economy and investors fear a global recession. HDIV is the top-performing fund in the debt – loans...

North American Income Trust – Macro driven market is creating opportunities Fran Radano, the manager of North American Income Trust (NAIT), comments that the US market has been very highly driven by macroeconomic sentiment this year, with the effects of this frequently outweighing company fundamentals. He notes that, whilst it can be challenging to trade through such environments, increased market volatility creates opportunities for investors who are able to look through the noise. Valuations have increased during the last 12 months and...

In swooped Binance, who are pros at manipulating the system for their benefit. The crypto-exchange platform, run by Changpeng Zhao, basically repackaged the Initial Coin Offering tool by swapping out the 'C' for an 'E', introducing the new and improved Initial Exchange Offering.

Henderson High Income Trust (HHI) launched in November 1989, with an objective of generating a high income from a portfolio consisting primarily of UK equities complemented by a modest weighting in fixed interest investments that have been used to enhance income.... Read more Investors might have been forgiven for thinking that the second half of HHI’s objective, “maintaining the prospect of capital growth”, might fall by the wayside. However, by making imaginative use of the flexibility afforded by its investment...

2018 saw a strong recovery in the uranium price. This has stalled this year, but with the uranium market now seeing more demand than supply, Geiger Counter’s (GCL’s) managers see the potential for a resurgence in the uranium price, as more nuclear reactors come online (particularly in China and India), while major producers hold off from returning mothballed mines to production.... Read more An announcement by the Trump administration in July, in relation to its section 232 investigation into the...

Aberdeen Frontier Markets (AFMC)’s manager has been re-positioning the portfolio by reducing exposure to Sub-Saharan Africa, adding companies in new markets and looking capture more of the momentum in markets. There is a now a greater tilt to the Asia Pacific region, where Vietnam accounts for over a quarter of the portfolio. AFMC holds a concentrated selection of companies that offer the prospect of double-digit earnings growth paired with inexpensive valuations (the weighted average current year price/earnings (P/E) ratio of...

October was another strong month for certain retail focused property companies. For the second month running, Capital & Regional topped the list for share price growth: up 30.5% in the month – admittedly off a low base. The shopping centre landlord’s shares continued to rise after it agreed a deal to sell a majority stake to South African REIT, Growthpoint Properties. In the three-month period to the end of October, the company’s share price has risen 69.7%. Central London landlord...