Quarterly investment companies roundup – First quarter 2018
Global equity markets declined in the first quarter of 2018. Concerns about US interest rate rises were the feature of the first half of the quarter. However, worries about global trade took over in the second part, particularly with the implementation of trade tariffs by the Trump administration. Global bond markets reflected higher inflation, with most major government bond yields climbing.
The median discount across all funds is still on a narrowing trend over the longer term. However, recently the median discount has widened.
The median premium for funds investing in infrastructure has reduced over the past year but narrowed slightly recently. Although at a consistent discount, utilities funds have widened recently. Generally, renewable energy funds are at a premium that has remained relatively flat. moving slightly wider in the last three months.
Generally, funds with a few exceptions, reflected market conditions and delivered negative returns. Funds investing in Japan had a decent quarter. Some fixed income/debt funds delivered positive numbers where most funds reported negative returns. A handful of extreme moves in discounts/premiums impacted on a small number of funds, particularly in the resources and infrastructure sectors.
In this issue
Performance Data – Vietnam Enterprise, VietNam Holding and VinaCapital Vietnam Opportunities all performed well on the back of strong macroeconomic and market performance
Money in and out of the sector – Secure Income REIT raised £337.7m to invest in further social housing
Significant rating changes – Lindsell Train continued to attract attention from investors, moving it to a higher premium, despite a flat return from its NAV
Major news stories – JPMorgan Income & Capital’s shareholders rolled over into JPMorgan Multi Asset Trust
Q1 2018 Quarterly roundup