Bringing you live news and features since 2006 

M&A activity aids performance


Political developments in response to the ongoing European sovereign debt crisis continued to shape the direction of equity markets through June, says Hugh Cuthbert, co-fund manager, SVM All Europe SRI Fund…

Whereas the focus in May was on the forthcoming Greek elections and what it may mean for the ‘Euro’ project, the epicentre of the crisis has now migrated towards Spain and Italy.

While ‘macro’ concerns continue to drive markets, stock selection was the main driver of the fund’s performance. Most notably our continued faith in the fund’s largest holding, Nautical Petroleum, was rewarded by a cash bid at premium of over 50% to the undisturbed price. We are particularly pleased for the CEO, Steve Jenkins, and his team, who have created significant value with minimal recourse to equity finance (not as common as investors would wish in the oil & gas sector). Post the Nautical bid it was revealed that another of our holdings, Invensys, had rejected an approach from an American suitor. While equity markets may not always recognise the ‘intrinsic value’ of particular businesses, industry will often step-in and close the gap. Micro Focus was another notable performer as the company announced it would make a significant cash return to shareholders.

The fund exited positions in Bellway, Taylor Wimpey, Daimler and AG Barr.

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by