Fidelity European, International Public Partnerships and BlackRock World Mining report half-year results; Abrdn UK Smaller Companies publishes annual results and a plan to change its name to Aberdeen; and the Competition and Markets Authority looks into the merger of Primary Health Properties and Assura.
Fidelity European (FEV) underperformed by 4.7% in the first half of the year as “lacklustre stockpicking” by fund managers Sam Morse and Marcel Stotzel and a slump in Denmark’s Novo Nordisk over competition for its weight-loss drugs produced a 9.6% investment return that lagged the 14.3% rise in the FTSE World Europe ex UK index. Shareholders did better, however, with a total 16.7% return including dividends as the share price discount narrowed, helped by the impending merger with Henderson European which will swell its assets by about £400m to £2.1bn. An interim dividend of 3.9p has been declared, up 8.3% on a year ago.
The Competition and Markets Authority (CMA) has launched an investigation into the Primary Health Properties‘ (PHP) acquisition of rival Assura. It intends to report its findings on 29 October.
Abrdn UK Smaller Companies Growth (AUSC) made an underlying investment return of 6.8% in the 12 months to 30 June after a more difficult second half of its financial year for fund managers Abby Glennie and Amanda Yeaman saw the £298m trust slip behind the 7.8% total return of the Deutsche Numis Smaller Companies plus AIM index. However, shareholders enjoyed an 11.4% return as the share price discount to net asset value (NAV) narrowed to 9% from 12.5% in response to the company buying back 16.8% of its shares at a cost of £62.6m. Buying back cheap stock added 9.8p to NAV per share. A final dividend of 9.5p per share lifts the total for the year by 10% to 13.2p, driven by strong revenues and also the buybacks which by reducing the number of shares cut the cost of the dividend by 10%, enabling the board to transfer £1.4m to revenue reserves. The company plans to follow the decision of its fund manager to rename itself Aberdeen and change its name to Aberdeen UK Small Companies Growth.
International Public Partnerships (INPP) defied the downward pressure of infrastructure funds with a 1% increase in net asset value (NAV) to £2.74bn in the first half of the year. NAV per share rose by 2.8% to 148.7p from 144.7p at 31 December due to strong portfolio performance, the sale of some assets at a “meaningful premium”, such as the partial disposal of Angel Trains, and share buybacks. Including the newly quarterly dividends, the total underlying investment return was 5.7%. Chair Mike Gerrard said: “We are encouraged by early signs of improving market sentiment and remain confident that our capital allocation is providing real value for shareholders. This includes over £345m of realisations to date which have validated the NAV, and up to £200m to be returned through our buyback programme by March 2026.” Shares in the £2.2bn investment company yield 7% and stand on a discount of around 16% below NAV.
BlackRock World Mining (BRWM) reported a “solid” first half with an underlying investment return of 8.2% in the six months to 30 June. This underperformed the 9.5% gain in its benchmark, the MSCI ACWI Metals & Mining 30% Buffer 10/40 index, although shareholders saw a 12.5% total return including dividends as the share price discount narrowed to 2.3%. The portfolio was buoyed by the 25% and 16% rallied in gold and copper, with the former particularly helpful as shares in gold miners, which account for 31% of assets, advanced around twice as much as the precious metal. However, the fund managers are cautious about the impact of US tariffs on the world economy and have reduced gearing, or borrowing, to 6.9% from 12%. A second quarterly dividend of 5.5p has been declared taking the half-year total to 11p. Since June the discount has widened to 8%
Partners Group Private Equity (PEY) will join the FTSE 250 index on 19 September. Chair Peter McKellar said it was “an important milestone” for the £708m investment company as it tried to re-rate its shares trading 24% below the portfolio’s net asset value. He said: “We anticipate it leading to enhanced liquidity and marketability of the shares, complementing the board’s initiatives, working alongside the investment manager and our advisers, focused on delivering enhanced shareholder value through delivering strong NAV performance and narrowing the discount to NAV.”
Schroder BSC Social Impact (SBSI) has updated shareholders on the strategic review begun in July. Having received a wide range of feedback on the future of the £56m investment company stuck on a 32% discount, the board is taking advice and “carefully considering fund structures and alternatives that would seek to optimise outcomes for shareholders, including those shareholders who have expressed a preference for a return of capital or improved liquidity.”
JPMorgan Emerging Europe, Middle East & Africa Securities (JEMA) says the Russian court has suspended the €108m claim brought by VTB Bank against eight JP Morgan entities including JEMA while the English Appeal court considers VTB’s appeal against the JP Morgan entities being granted an anti-suit injunction. It is possible VTB may appeal the suspension.
Apax Global Alpha (APAX) has gained shareholder approval for the recommended cash offer from its fund manager Apax Partners. 97.6% of shares voted at both the court meeting and general meeting yesterday backed the take-private deal.
Blackstone has received acceptances from 35.2% of Warehouse REIT (WHR) shareholders for its recommended cash bid.
