Quarterly investment companies roundup – Third quarter 2017 – Markets moved up a little over the course of the three months ended 30 September 2017. Regionally, emerging markets did well. The pound strengthened a bit relative to the US dollar but was flat against the euro. The oil price rose by more than 20%. In the investment companies sector, there were quite a few new issues.

The median discount across all funds is still on a narrowing trend. The median premium for funds investing predominantly in UK infrastructure has reduced over the past year. NAVs are released infrequently and this distorts the chart (as the sharp drop in the graph at the end of June illustrates). At the end of September, comments made at The Labour Party conference about PFI deals unnerved this subsector a little but the impact has been fairly marginal, so far.

Over the 12 months to the end of June 2017, the median discount across the whole sector has clearly been on a narrowing trend, moving within a range of 12.9% to 6.2%. The median discount has been tighter than it is today, however, trading below 6% for much of the second half of 2015.

In this issue

  • Performance Data – hurricanes knock CatCo Reinsurance Opportunities and Blue Capital Alternative Income.
  • Money in and out of the sector – Net £1.7bn floods in as seven new funds launched.
  • Significant rating changes – investors piled into Syncona as it made its first significant disposal.
  • Major news stories – Pantheon International combined its ordinary and redeemable share classes.

Q3 Quarterly roundup

Quarterly investment companies roundup – Third quarter 2017