Prices and Markets

Investors in search of income have been hit hard by the COVID-19 crisis. Bond yields and interest rates have tumbled, and dividend cuts have proliferated. By contrast, the companies in Ecofin Global Utilities and Infrastructure Trust’s (EGL’s) portfolio have proved relatively resilient. In addition, when paying its dividend, EGL is able to use its distributable reserves to top up any shortfall in revenue that might occur... Read more The defensive attractions of the sector have been recognised and, as investors...

The managers of CQS Natural Resources Growth Income Trust (CYN) say that the covid-19 pandemic has delayed, rather than ended, the recovery they were seeing in the mining sector. After sharp falls in March, share prices have recouped some of their losses, but the managers believe there is much more to go for... Read more China and the rest of Asia is tentatively emerging from lockdown. While a ‘V’-shaped recovery for the economy looks unlikely, the market is looking through...

The NEW QuotedData Investment Companies Guide (2nd Edition) has been released. Building on the success of last year’s publication and updated to reflect developments within the Investment Company sector, the Guide reaches over 100,000 self-directed investors and their advisers.. Read more Partnership approach The guide has been supported by sponsors including Aberdeen Standard Investments, Jupiter Asset Management and Polar Capital and will be hosted by Alliance Trust Savings, Zurich, Transact, Interactive Investor, The Share Centre and Fidelity’s FundsNetwork on their respective...

US equity income-focused funds, like the North American Income Trust (NAIT), have not had to deal with the suspension of dividends in the way that their UK peers have. Though share buybacks have ceased, regulators in the US have not banned bank distributions in the way that they have elsewhere, while healthcare, NAIT’s other major exposure, is holding up very well... Read more NAIT provides the purest access to North American income – its closest peer, BlackRock North American Income,...

COVID-19-related falls in markets have weighed on BlackRock Throgmorton Trust (THRG), although it has held up well relative to both its peer group and its benchmark. Its manager sees this as a defining moment for investors – one that could set the stage for many years to come... Read more Identifying industry change, investing in tomorrow’s winners and shorting unsustainable business models are core parts of THRG manager Dan Whitestone’s investment process. He believes that the economic disruption associated with...

In this issue Performance - Shares in property companies took another turbulent turn during May as the covid-19 pandemic continued to wreak havoc on property assets. Valuation moves - Results season is in full swing and saw many companies report net asset value moves. Corporate activity - There was a big equity raise, a high profile chief executive resignation and a new investment manager appointment in the month of May. Major news stories - Capital & Counties bought a 26%...

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 Global (thoughts from AVI Global, Majedie, and Scottish Mortgage) Flexible investment (thoughts from Capital Gearing, Caledonia, and Livermore) UK (thoughts from BMO UK High Income,...

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 – The ongoing impact of stimulus and the easing in lockdowns reinforced the rally over May. Cyclical sectors that had been battered, particularly energy, catapulted back from historic lows. Adoption of many of the ‘disruptive’ technologies Augmentum Fintech invests in, could speed-up as a result of the pandemic. Golden Prospect Precious Metals...

The logistics sector, in which Aberdeen Standard European Logistics Income (ASLI) invests, would appear to be one of the few property sectors that could see occupier demand increase in the long term as a result of the coronavirus pandemic. With some form of a lockdown enforced in most European countries, there has been a spike in ecommerce orders. A whole new group of people have been introduced to online retailing, which is expected to speed up penetration rates across Europe...