QuotedData investment companies roundup – August 2017 – is our latest roundup of news; price, NAV and discount movements; flows in and out of the sector and report on full year dividends announced over the month of July 2017. Kindly sponsored by Baillie Gifford.
Monthly NAV/Price moves:
A couple of themes stand out on the positive side – funds exposed to commodities (such as BlackRock World Mining and City Natural Resources) and funds exposed to emerging markets, especially in Brazil (such as JPMorgan Brazil and BlackRock Latin American), did well. Brazil’s President may face corruption charges but its stock market cheered an interest rate cut. Better Capital’s shares did well after Jon Moulton, the funds’ manager bought shares in the 2012 fund – £430k worth. Independent posted strong interim results but, like, JPMorgan Smaller Companies, it may have also benefited from a recovery in UK small cap stocks. A rebound in the Qatari stock market helped Qatar Investment Fund. LMS announced another return of capital. A Riverstone Energy investment struck oil.
On the negative side, it is clear that the Vietnamese stock market bucked the trend towards emerging markets in July. Disputes with China and Indonesia over the South China Sea heated up a little and this may have made investors more nervous. VietNam Holding, Vietnam Enterprise and VinaCapital Vietnam Opportunities were all hit. Livermore’s discount returned to its historic trading range. Sentiment towards Ground Rents Income was hurt by Government proposals to ban leasehold structures for new build homes. Stronger oil prices failed to boost two funds heavily exposed towards them – EF Realisation and Crystal Amber. There appears to have been some profit taking within the private equity sector – the discounts on Aberdeen Private Equity and Standard Life Private Equity both widened.