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Investment Companies Roundup – March 2020

• Performance – If the market’s initial reaction to the outbreak of Coronavirus (Covid-19) was somewhat indifferent, the virus’s passage beyond China (and its rapid spread in Italy and Iran specifically) facilitated some of the biggest negative moves in risk assets since the global financial crisis. Over February, this was predominantly driven by sentiment, with median share prices (7.8%) declining more than median total return NAVs (1.3%). Japanese smaller companies, led by ,  and  were among the worst performers. With industrial activity in China grinding to a halt, money was taken out of commodity funds, led by  and . Split-capital trusts such as ,  and  were hit by the change sentiment, as was the UK smaller companies sector;

• Discounts/premiums –  is back to a premium above 20%. ’s board recommended a managed wind-down while  continues the process of realising its portfolio. ’s shares led performance in the renewable energy sector while  fell to a discount for the first time in 10 years. ’s and ’s discount widening were share price led, reflecting wider views on equity fund. Some private equity companies invest directly, some make investments in funds (usually limited partnership or LP funds), and some invest in a mixture of the two.

  ">private equity.

• Money in and out – We welcomed , which got off the ground with a £103m launch (it was targeting £200m). About £580m of net new money was raised, the bulk of which came from ’s oversubscribed share issuance (it was targeting £250m). The issuance likely benefitted from the reversal in sentiment, attracting the flow of capital to an established yield-focused strategy.

• Major news stories –  and fell out with its manager while . Elsewhere, .