QuotedData’s morning briefing 6 August 2021

In QuotedData’s morning briefing 6 August 2021:

• JPMorgan Claverhouse (JCH) has published its interim results for the six months ended 30 June 2021. The managers say that the portfolio performed well over the period, benefitting from a significant exposure to stocks geared into the nascent economic upturn. During the period, JCH provided an NAV total return +14.0%, which it says is an outperformance of 2.9% compared to its All-Share benchmark. The share price also increased, from 649.0p as at 31st December 2020 to 732.0p as at 30th June 2021, while revenue per share was 12.82p, compared with 10.19p earned in the same period in 2020. The board has declared a second quarterly dividend of 7.00p per share (2020: 6.50p) to be paid on 6th September 2021 to shareholders on the register at the close of business on 13th August 2021.
• RTW Ventures (RTW) shares have been admitted to the premium segment of the London stock exchange. In addition to its existing USD quote, RTW now has an additional market quote denominated in GBP with a new ticker (RTWG). The GBP Quote will appear alongside RTW’s existing USD market quote and there will be no changes to the legal form or nature of the RTW’s shares. RTW’s reporting currency remains the US dollar. 
• Aquila European Renewables Income (AERS) has announced that its Investment Adviser has undertaken to extend the existing arrangement whereby its fee (net of any applicable tax) is paid in AERS ordinary shares rather than cash, for an additional two years to 30 June 2023. AERS’s board says that this further strengthens the alignment of interest between the parties and shareholders. In its IPO prospectus, it was stated that AERS’s investment adviser had undertaken to receive its fee (net of any applicable tax) in ordinary shares during the first two years of its appointment following the fund’s IPO, which took place in June 2019. Accordingly, this undertaking recently expired, but has effectively been reinstated for a further two years. Aquila Capital currently holds approximately 2.9m shares in the Company, equivalent to approximately 0.9% ownership in the company.
• The Renewables Infrastructure Group (TRIG) has announced its interim results for the six months ended 30 June 2021. The NAV as at 30 June 2021 was 114.3p per share (a fall of 0.9% versus 31 December 2020) and the NAV total return for the first half of 2021 was 2.0%. The announcement includes the following key highlights:
  • £2,491m Directors’ portfolio valuation, up 12.6% since 31 December 2020 (£2,213m)
  • 9.2% total shareholder return since IPO vs. 5.6% for the FTSE 250
  • 6.76p dividend target reaffirmed for the year to December 2021 (2020: 6.76p)
  • 1,941MW portfolio generation capacity (31 December 2020 1,820MW)
  • £341m invested in period (H1 2020: £281m)
  • £240m equity capital raised (H1 2020: £120m)
• Fundsmith Emerging Equities (FEET) has published its interim results for the six months ended 30 June 2021. During the period, FEET provided an NAV total return of 2.0% (2020: +4.3%) and the share price total return of -0.9% (2020: +0.3%). In comparison, the trust’s ‘principal performance comparator’, the MSCI Emerging & Frontier Markets Index, increased by 6.4% (2020: decreased by 3.4%). All figures in sterling terms. The managers say that the index performed strongly at the start of the year as a result primarily of a continued strong performance in the Asian technology sector, although this began to unwind from mid‑February due to a combination of fears of higher interest rates, concerns over computer chip availability and greater regulation of the sector in China. In addition, the evolution of the Covid-19 pandemic has also evolved negatively in a number of emerging market countries, with new variants, failings in public health systems and often‑chaotic vaccination programmes all delaying recovering from the pandemic. The first half of 2021 also saw the impact of a switch from ‘growth’ to ‘value’, as the prospect of rising interest rates meant investors became more cautious of businesses impacted by rising discount rates. This led to a rise in the share prices of businesses in sectors such as resources, banking and heavy industrials, all sectors where the managers will not invest.
• ScotGems (SGEM) has announced its interim results for the six months ended 30 June 2021. During the period, SGEM’s NAV rose by 9.4% to 93.9p per share while the share price rose by 6.2% to 77.0p. This compares to rises in the Company’s comparator indices: the MSCI Emerging Markets Small Cap Index, the MSCI Emerging Markets ex Asia Index and the MSCI Emerging Markets Index of 14.0%, 10.1% and 5.4% respectively. During the period, the trust’s discount widened from 15.6% to 18.0%. In terms of performance drivers, the Indian holdings have, collectively, contributed very significantly to fund performance. The Chilean conglomerate Quiñenco, and the South African mini-conglomerate Reunert have also been good performers. The strong rise in markets over the past twelve months means only a handful of companies have detracted significantly from SGEM’s performance. Notable detractors are a retailer in the Philippines, which continues to find Covid-19 tough, and a Chilean water utility that has suffered from concerns that future regulation may be less generous.

• Genesis Emerging Markets (GSS) has provided an update on the move of its investment management contract to FIL Investment Services (UK) Limited. The company says that it expects to hold an extraordinary general meeting on or around 1 October 2021 to approve matters relating to the appointment of the new manager, with FIL Investment Services (UK) Limited taking over the management of the Company shortly thereafter. GSS also says that it expects to commence its tender offer for up to to 25 per cent. of its participating preference shares in early September, at the same time as the dispatch of the notice of the EGM. The tender offer will be conditional on shareholder approval at the EGM, with the tender offer closing, and the tender price being calculated following the EGM in mid-October 2021.

• Stenprop has completed the sale of the Hermann Quartier shopping centre in Berlin, Germany, for €95m (Stenprop share €30.8m), as it continues ts portfolio transition to 100% UK multi-let industrial. The transaction takes Stenprop’s portfolio to 83% multi-let industrial, based on March 2021 valuations. The group said it was on track to become 100% multi-let industrial focused by March 2022.

We also have annual results from Invesco Perpetual Select (all four of its portfolios outperformed their benchmarks during the year to 31 May 2021) and news of a potential equity raise from Civitas Social Housing.