US stock markets have continued to power ahead in 2023. If the environment has been fragile, they have been seen as a source of stability; if investors have been more optimistic, they have seen US companies as a source of growth. They have outpaced their peers even as inflation has rebounded, interest rates have leapt […]
From April 2020 to June 2022, the energy transition and the war in Ukraine combined to generate a significant surge in commodity prices. Since then, commodities have struggled, weighed down by the weakness of China’s economic recovery and mixed economic data across the globe. More recently, however, they have started to tick higher once again. […]
For some time, the trajectory of renewable energy infrastructure trusts appeared inexorable: the march to decarbonisation was inevitable, government backing a given and the regulatory environment supportive. However, in spite of some significant financial backing for renewable energy development, global governments appear to be wavering on their commitment to net zero, and the public backlash […]
Having been one of the few ports in the storm of 2022, it has been a dismal start to the year for infrastructure trusts. Every fund across the three main infrastructure sectors – infrastructure, infrastructure securities and renewable energy infrastructure – is down in share price terms for the year to date. For some of […]
Increasingly, investing in Asia has become a story of India and China. These twin behemoths account for over half of the MSCI Asia ex Japan index[1] and define the narrative for the region. However, some of Asia’s most interesting growth ideas – including China plus one, financial inclusion, and rising technology innovation – can be […]
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 […]
