QuotedData investment companies roundup – April 2018 – is our latest roundup of news; price, NAV and discount movements; flows in and out of the sector and report on full year dividends announced over the month of March 2018. Kindly sponsored by Baillie Gifford.

Stock markets have suffered their first meaningful fall for nearly two years. At the quarter end, the FTSE 100 index was down nearly 10% from its January peak of approximately 7800.What looked like good news about the strength of global economies was taken as signs that inflation was on the rise and interest rates would have to rise. Politics, trade wars and protectionism collectively contributed to the market correction.

In volatile markets such as those seen in March, the reasons for stronger performance were not uniform.  Lindsell Train continued to attract attention from investors, moving it to a higher premium, despite a flat return from its NAV. Aberforth Split Level Income, which is thinly traded, recovered from a drop in its share price in February.

Companies that underperformed did so for more stock specific reasons. Negative investor sentiment towards global infrastructure and utilities contributed to a widening discount for Premier Global Infrastructure. Infrastructure India is still struggling to refinance its debt. There has been growing nervousness around the UK housing market in recent months and this may be behind the movement of Residential Secure Income’s share price relative to its NAV.

QuotedData investment companies roundup – April 2018