The 10-investment trust portfolio generated by the screen this month is showing up good value opportunities in smaller companies and some other interesting niche areas.
- European assets have been flagged, which is interesting as recent economic data has been more upbeat (Eurozone GDP growth rate accelerated slightly in Q1 2019) and valuations are suppressed. There is also the prospect of Euro denominated assets benefitting against weaker sterling as the clock runs down on the UK’s latest date of departure from the European Union.
- Another investment fraught with risk thanks to geo-politics and volatility of resources prices is Russian equities. The Russian market is consequently one of the cheapest in the world, although intrepid investors may feel the deep value premium on offer is worth the risk, albeit with just a modest slice of overall portfolio funds.
- Talking of deep value, the private equity trust in this month’s portfolio is at a discount that reflects a very cheap asset class. Generally, PE funds are perhaps being unduly punished thanks to weaker global sentiment and liquidity concerns that, although real, may be worth braving depending on investors’ time horizon.
