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QuotedData’s morning briefing 21 August 2020

The North American Income Trust - Time to grow?

In QuotedData’s morning briefing 21 August 2020:

  • JPMorgan US Smaller Companies (JUSC) reported interim results to 30 June 2020, with the total NAV return coming in at (4.9%). The benchmark Russell 2000 index delivered (6.8%) over the same period, in sterling terms. Small-cap shares have underperformed the tech-led led large-cap rally in US markets since March. JUSC’s chairman, David Ross, had this to say, in his outlook section: “The market for smaller US companies as measured by our benchmark has lagged this rise abating some fears of extended valuations. The continued rise in COVID cases in the US combined with the forthcoming election and rising tensions with China means we can expect volatile market conditions to continue.”
  • Debt sector (loans & bonds) fund, City Merchants High Yield (CMHY) delivered total NAV and market returns of (2.4%) and (7.8%), respectively, over its interim results period to 30 June 2020. Manager, Rhys Davies, noted that “As we look ahead, we are cognisant that the main driver of the current rally in financial markets has been the unprecedented monetary and fiscal policy support. The message from central banks and governments is that this support is not likely to change in the near term. Therefore, while it is difficult to see markets moving much higher, it is equally difficult to see a catalyst for any significant sell-off.”

We also have interim results from BMO Private Equity, who say that their initial projections may prove pessimistic, a cautionary take on the banking sector from Axiom European Financial Debt, as part of their interim results announcement, Hg Capital indirectly increasing its stake in Visma, through a further investment by its manager, and a thematic article exploring an unlikely saviour of shopping centres.

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