Prices and Markets

The outbreak of covid-19 has taken the wind out of global markets and Seneca Global Income & Growth Trust (SIGT) has not been immune to this; its net asset value (NAV) has fallen 30.4% during the first quarter of 2020 (23.6% in March – all in total return terms). It has suffered a triple whammy from its UK-biased value style, its mid cap exposure and the correlation of alternative asset fund prices to equity markets, but its board has said...

Covid chaos The covid-19 pandemic has had a devastating effect on the share price of property companies, with 31% wiped off the value of their total market capitalisation during the first quarter of 2020. Companies focused on the retail, leisure and hospitality property sectors were particularly badly affected as the country was put on lockdown in an effort to halt the spread of the disease. Later in the quarter, the extent of the problem for property companies was revealed with...

Unprecedented times We have knitted together the impact on the investment companies from what is now widely considered to be the most severe pandemic in a century. The collapse in asset prices over the latter part of March, brought the curtain down on an up-market that lasted more than ten years. In amongst this, there were pockets, such as the technology sector, that held up well. For many industries, the worst is still to come, as we brace ourselves for...

Just a couple of months ago, Strategic Equity Capital (SEC)’s net asset value (NAV) and share price were at all-time highs. However, since then, the covid-19-related sell-off in markets has led to a flight to safety. NAVs of smaller companies funds have fallen and discounts have widened. Against this backdrop, SEC has proved relatively resilient, however.... Read more Jeff Harris and Adam Khanbhai, SEC’s managers, were confident in their portfolio ahead of the outbreak. The long-term economic effect of the...

Some market commentators appear to have overstated the impact of regulatory concerns on Civitas Social Housing’s (CSH’s) performance. Regulatory notices served on some of its tenants knocked CSH’s share price over 2018/2019. However, during the whole of this period, it collected its rents, paid its dividends and increased its net asset value (NAV).Recognition of this fact, and the supply and demand fundamentals that support growth in the supported living sector, saw its share price recover and its discount to NAV...

In this issue Performance - Property stocks took a hammering in March as the covid-19 pandemic took hold. The UK was put on lockdown to stop the spread of the coronavirus resulting in the enforced closure of many commercial real estate assets, including shops, restaurants, leisure facilities and hotels. The constituents of the top 10 best performing companies in price terms in March are all focused on real estate sectors that are less exposed to the impact of covid-19 and...

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 Alliance, F&C Investment, Manchester & London Investment, Mid-Wynd International Investment, Murray International and Witan) UK (thoughts from Aberdeen Smaller Companies Income, Crystal...

As part of our commitment to providing Investment Research, we have published our regular monthly update on the Global Economy & Listed Investment Companies. New research Update note on International Biotechnology TrustAnnual overview note on Herald Investment TrustUpdate note on CG Asset ManagementAnnual overview on Polar Global Infrastructure Trust In this issue Performance – Performance was led by alternative sectors with lower correlation to the broader market. A handful of hedge fund-sector companies had very good months, led by the Brevan...

Trust in biotech The biotechnology sector is proving to be relatively resilient in this COVID-19 related market sell-off. International Biotechnology Trust (IBT) adopts a conservative approach to investing in what can be a quite volatile, if rewarding, sector. It has fared better than competing funds in this environment... Read more Some delay to drug development, testing programmes and product launches may be inevitable as the world focuses on tackling the coronavirus. However, the underlying picture for biotechnology is one of...