LONDON (Alliance News) - London-listed funds with exposure to commodities and natural resources saw their fortunes improve in February, according to analysis by research firm QuotedData, with its monthly roundup of best and worst performing funds showing an improvement in fortunes for those leaning to niche areas or smaller cap companies.
"There's potentially the view that China is bottoming out and maybe that emerging markets have hit a low. The world is feeling slightly more positive about commodities. When commodities are doing well, the smaller cap companies tend to outperform the larger caps, and vice versa," Matthew Read, senior analyst, told Alliance News.
QuotedData is part of the Marten & Co investment boutique founded by former Cazenove equities broker Ed Marten. It provides equity research on UK and European listed companies and offers a free research service to self-directed investors and financial advisers.
Turning to individual fund performance, QuotedData highlighted the positive performance of a trio of niche funds managed by New City Investment Managers.
Guernsey fund Golden Prospect Precious Metals, which invests in gold and precious metals companies, saw its shares rise 31% and net asset value (NAV) increase 29% in February. Jersey closed-end investment company Geiger Counter, which invests in uranium exploration and production stocks, saw its share price rise 26%. City Natural Resources High Yield Trust, an investor in resources companies, saw its NAV increase 9.1%.
Jersey investment company New City Energy, also managed by New City Investment Managers, was one of the worst performing funds in NAV terms, down 4.9%.
Trusts bearing the name of BlackRock, the world's largest asset manager, were among the best performers. BlackRock World Mining Trust's shares rose 18% and its NAV by 22%, while BlackRock Commodities Income Trust's shares rose 12% and its NAV 8.0%.
The monthly report showed that shares in Dunedin Enterprise Investment Trust PLC rose by 17% in February, as the private equity trust said it will give shareholders the chance to vote on whether it should be wound up. The move came after Dunedin Enterprise said it receive GBP18.8 million from the realisation of what was its largest investment, courier company CitySprint.
Juridica Investments Ltd, an investment company in run-off, also saw its share price rise in February, QuotedData said, up about 17%. Managed by Juridica Asset Management Ltd, Juridica, which invests in business-related arbitration and litigation claims, set out plans to reduce running costs in 2016.
Investors in Dolphin Capital Investors Ltd, a developer of residential resorts in the Eastern Mediterranean, Caribbean and Central America, endured a 26% drop in the company's share price in February, QuotedData said. It was the worst performing fund in terms of share price that month, according to the data compiled.
Dolphin's fourth-quarter trading update "was not well received by the market", QuotedData said. Managed by real estate private equity firm Dolphin Capital Partners, the London-listed fund said on February 11 that there were some "challenges" in relation to the opening of the Amanera golf resort at Playa Grande in the Dominican Republic, amid tropical ran storms and "final touches" in construction and landscape.
Laurence Geller resigned as the chairman of Dolphin Capital Investors on March 1, about one year after he took on the role, and was replaced by Andrew Coppel, its senior independent director.
The 16% drop in the value of Candover Investments PLC's shares in February was second only to Dolphin in QuotedData's list of worst performing funds in terms of share price performance.
The private equity investment trust's annual results for 2015 showed that it wrote down the value of its holding in oilfield services company Expro by GBP43.6 million to about GBP500,000, amid the oil price slump. That caused Candover's NAV to drop to 243.0 pence per share from 545.0p over the course of 2015.
Other poorly performing funds in terms of share price included St Peter Port Capital, down 11%, which QuotedData said was due to "heavy exposures" to mining and oil & gas continuing to weigh on performance.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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