It has been a tough year for the investment companies in the growth capital sector. Valuations were hit hard by rising interest rates and widespread risk aversion among investors. The sector now offers some apparently attractive discounts to net asset value, but this depends on the continued strength of the underlying companies. Are the early […]
Boards have traditionally been a selling point for investment trusts. Shareholders have a group of independent experts, tasked with looking after their interests. They hold the investment manager to account, help set the strategic direction of the trust, negotiate fees and other important work. However, occasionally it becomes clear that perfect alignment of shareholder and […]
Despite its volatility, 2022 favoured global equity income trusts. In recent years, funds in the sector had struggled to keep pace with their global sector equivalents, which could participate in the punchy rise and rise of the (non-dividend paying) technology sector. Last year, many income trusts managed to ride the value wave, even though few […]
After a painful adjustment to higher interest rates in 2022, there are whispers that bonds may be back. Yields are at decade-highs, inflationary pressures appear to have peaked and investor interest is reviving. However, with an uncertain economic outlook, there are still risks to be navigated. The investment trust sector tends to gravitate to specific […]
A defining feature of 2022 was the strength of the US dollar, which shaped asset class returns for many investors over the year. The slump in the yen grabbed fewer headlines, but has been an important factor for the performance of Japanese equities. Its reversal may drive Japan’s financial markets in the year ahead. At […]
Recession now appears inevitable across much of Europe – and may already have started. A grim winter of potential fuel shortages and economic disruption looms. However, the impact for stock markets is not clear-cut. With a range of styles in the European sector, could one prevail over another in the tough year ahead? There has […]
The Indian stock market has proved an unlikely safe haven over the past three years. After an astonishing recovery in 2020 and 2021, Indian investment trusts continued their resilience in 2022, only outpaced by commodity-focused markets. Its strength is in notable contrast to China, which languishes at the bottom of the performance tables. It suggests […]
The UK economy looks increasingly precarious. The recent ‘targeted fiscal event’ has sent the pound sliding, gilt yields rising and confidence to rock bottom. With recession looming, it has also proved a tough moment for UK smaller companies, which were already battling poor sentiment. Smaller companies managers are no strangers to volatility, but how are […]
It has been a tough first half for smaller companies, with the FTSE SmallCap trailing the FTSE 100 by around 13% for the year to date. While small companies are said to have sustained their operational performance, sentiment has run against them. Nevertheless, it is not the moment to give up on the sector: the […]
In early 2021, it looked like the pandemic had been a breakthrough moment for the biotechnology sector. The sector had been critical in the development of Covid-19 vaccines, using new and innovation gene sequencing, while developments in oncology promised a treatment revolution. Share prices were riding high and specialist investment trusts had enjoyed two years […]
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