Prices and Markets

India Capital Growth’s (IGC’s) board is asking investors to back a continuation vote scheduled for 12 June 2020 and it is important that shareholders make their vote count. COVID-19 has depressed valuations to levels not seen since the financial crisis. The managers see substantial upside when market confidence returns and are asking for more time to deliver that. The board believes shareholders should support the continuation of the company. This reflects their confidence in the measures taken to turn performance...

Recent market falls have left Henderson High Income Trust (HHI) trading on a 7.3% dividend yield. This is a significant premium to the yield on the UK market, which has been hit by a swathe of dividend cuts. The board are well aware of the reliance that many investors have on the income paid by the trust. Fortunately, HHI’s sources of revenue are diversified (as we explain on page 4) and it had revenue reserves of 8.3p per share at...

It is hard to gauge the true extent of the damage that the pandemic is inflicting on the global economy, but already many companies have been forced to reduce or suspend dividends. For investors reliant on income, the renewable infrastructure sector offers some sense of security. JLEN Environmental Assets Group’s (JLEN’s) diverse portfolio and predictable long-term revenue stream provide some additional reassurance... Read more For the moment, attention has shifted away from the longer-term climate-related threats that face us, but...

After a brief period of extreme volatility in stock markets related to the coronavirus COVID-19 outbreak, confidence is returning in the technology sector. Shareholders seem to appreciate that the sector is well-placed to weather the disruption caused by measures that are being used to fight the pandemic. Polar Capital Technology Trust (PCT), buoyed by its strong track record, is attracting the attention it deserves. It has seen its discount eliminated and is issuing shares to meet investors’ demand... Read more...

In this issue Performance - Following two months of heavy falls as the covid-19 pandemic took hold and the UK was put on lockdown, many property companies saw a bounce in their share price in April, although not enough to recover the losses since the crisis hit. Valuation moves - Several companies reported net asset value (NAV) falls in the quarter to the end of March 2020 as property portfolio valuations took a hit due to the impact of covid-19....

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 Henderson International Income and Martin Currie Global) Flexible investment (thoughts from CIP Merchant) UK (thoughts from Acorn Income, Dunedin Income Growth, Fidelity...

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 – Small-cap strategies performed particularly well, while Gold is seen as a hedge against the monetary debasing taking placing, as central banks provide record levels of stimulus. Golden Prospect Precious Metal led NAV returns over April. On the negative side, property is particularly affected by the lockdown, with swathes of tenants not able to meet...

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...