Prices and Markets

Aberdeen New Dawn (ABD) has provided peer-group-beating performance during 2019 (an NAV total return of 18.4% versus a peer group average of 15.2%). Despite this, and also despite offering one of the lowest ongoing charges ratios amongst its peers, its discount to NAV remains broadly unchanged and is still, peculiarly, one of the widest in the Asia Pacific sector (ABD is trading on a discount of 10.6% versus a sector average of 7.9%)... Read more The manager has shifted its...

The second half of 2019 was a profitable time for investors in Shires Income (SHRS), as the trust extended its outperformance of both the UK market and the average competing fund. Investors also benefitted from the elimination of the discount as the share price rose to match the NAV. The trust continues to issue shares (a process that began in January 2019 after a long pause), and this should both help widen its audience, improve liquidity in the shares, and...

Industrial property market – the gift that keeps on giving The industrial and logistics sector has been on a tremendous run over the past five years or so. It is hard to think now, given the current dynamics in the property industry, that retail and offices were the sectors of choice for investors for many years with industrial cast aside by most. All that changed, primarily off the back of a fundamental shift in consumer buying habits. Amazon has become...

There was plenty to worry about in 2019, though this did not stop risk assets having a year that would have defied all but the most optimistic forecasters. The initial trigger came from the US, where the central bank performed a U-turn, abandoning planned interest rate increases. Gold also had its best run in years. The year ended with a tense stand-off between the US and Iran that served as a reminder that relative geopolitical calm should not be taken...

December was a good month for listed property companies, with the sector experiencing a bounce following the convincing majority the Conservative party won at the general election. For the second month in a row, estate agency group Countrywide topped the charts for the biggest share price gains. This follows news that it had agreed a deal to sell its commercial property arm Lambert Smith Hampton. Prior to this, the company had suffered big falls in its share price, down 19.3%...

November saw a host of companies report interim and full year results with varying outcomes. CLS Holdings, which owns a diverse portfolio split between the UK, Germany and France, gave a positive trading update that outlined its capital recycling programme and asset management initiatives. Its share price rose 14.4% in the month and in the year-to-date has grown 37.4%. Read more

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 Blue Planet, BMO Global Smaller Companies, Edinburgh Worldwide, Lindsell Train, Majedie, Monks, Scottish Investment Trust and Securities Trust of Scotland) Flexible...

In this issue Performance – Investors closed the year sanguinely, reflected by firmer median market returns compared to NAV returns. A conclusive UK general election result provided a springboard for flows into UK strategies, principally benefitting Aberforth Split Level Income, Chelverton UK Dividend, Montanaro UK Smaller Companies, JPMorgan Smaller Companies, Schroder UK Mid Cap and Downing Strategic Micro-Cap;Discounts/premiums – The narrowing in Schroder UK Public Private’s discount was price-led, reflecting a change of manager and positive sentiment. Despite raising much less than expected when it launched last October, RTW Venture won over new admirers as biotech...

Helped by a positive contribution from its short positions, BlackRock Throgmorton (THRG) continues to turn out benchmark-beating returns and leads its peer group, the AIC’s UK Smaller companies sector, over the medium term. A share price return of 46.5% over the year to the end of November is the best among all AIC investment trusts... Read more This is all the more impressive when you consider the backdrop for these returns – a paralysis in politics, slowing global growth and...