China and commodities the trust winners in October

Investment trusts specialising in China and large cap commodities were winners in October, according to research from QuotedData.

China and commodities the trust winners in October


Trusts such as New City Energy and Fidelity China Special Situations were key beneficiaries of a change in sentiment, found the report, with stronger NAV performance and a narrowing of the discount.

Japan too was in vogue in spite of no announcement on policy change from the Bank of Japan: Aberdeen Japan saw some narrowing of its discount in response.

Elsewhere, Alpha Pyrenees extended the maturity of its debt, which boosted the share price. Kuala announced more investments but now trades on a very high premium. Renewable Energy Generation bounced as its manager was linked to a bid for the company’s assets. Under fire, Electra Private Equity realised profits on the sale of Zensar and MIMS.

Although trusts focusing on larger capitalisation commodity companies were stronger, those with a more ‘special situations’ approach fared poorly, including Global Resources, Origo and RAB Special Situations. In Global Resources’ case the stock fall caused it to breach an asset cover covenant test on its convertible loan stock.

Other fallers included Cambria Africa, which was asked to repay a loan but disputes whether the loan is in default. Ludgate Environmental wrote down the value of its investment in Tamar Energy and Riverstone Energy also announced a fall in its NAV. Better Capital 2012 also had a weak month even though the group’s latest problem appears to relate to Fairline Boats, which is in the 2009 fund.

The full report can be read here


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