Investment companies in September

Highlights from QuotedData’s monthly roundup of news within the UK investment companies sector.

The trade war between the US and China abated a little in the month, to the benefit of funds invested in Asia. Japanese-focused funds made the most gains, on hopes that Japanese exports to China might recover. Elsewhere in Asia, a corporation tax cut in India was good news for funds investing in Indian shares, most notably Ashoka India Equity. Away from Asia, we saw good numbers from two private equity funds, Hg Capital and Oakley Capital, both of which published results during the month. The NAV uplift that Oakley announced was not reflected in its share price, leaving its shares trading close to a 30% discount to asset value.

On the negative side, Woodford Patient Capital wrote down its asset value in September as the fallout from the implosion of Woodford Investment Management continued. It was a difficult month too for Biotech Growth: we expect to see more pressure on the healthcare sector as the build up to the 2020 US elections intensifies (drug pricing and the future of US healthcare funding are hot topics for politicians on both sides). The gold market lost some of its glow during September (the gold price dropped by 3% in dollar terms), hitting funds with exposure to the sector such as Golden Prospect Precious Metals.

There was a raft of fundraises in the month, with Merian Chrysalis, which focuses on pre-IPO investments, raising £175m from investors in September. We also saw the launch of a new trust, JPMorgan Global Core Real Assets, which now has almost £150m to invest in infrastructure, transport and property. Other fundraises announced during the month included a call for £300m from Hipgnosis Songs Fund, to allow it to expand its portfolio of music rights, and Renewables Infrastructure, which is investing more in continental Europe.

In corporate news, global small cap trust, ScotGems, was hit by the resignation of its manager and Gabelli Value Plus was the subject of a shareholder revolt as its largest investor demanded a vote on whether the fund should continue.

There is more detail in the full report, which can be accessed at QuotedData.com, where you will also find a link to our jargon-busting guide to investment companies.


These views are those of the author alone and do not necessarily reflect the view of The Share Centre, its officers and employees

 

An independent guide to quoted investment companies