1. Ingeniería

Friday, 06 February 2015
Sales Note
Gabelli Value Plus+ Trust Plc
Please find the most recent issue of Barron’s attached, with comments from a roundtable of industry figures including Mario
Gabelli, on the outlook for the US and where to find value.
This Mornings News
Fund Focus
Hedge
BACIT (BACT) Discount
With a fairly solid start to the year of an estimated c.1.2% NAV return, the fund has held up well given the background market
volatility. The fund is now trading at a small discount of -0.5% and looks to be an attractive point to pick up stock

Access Fund Detail Here
UK Equity Income
Merchants (MRCH) Performance

MRCH has managed to outperform so far this year, with close to an 8% return compared to the benchmark return of 4.3%.
This has seen the price lag, rising by just 4.1% and the fund is now trading at a small discount of 1.5% and we like the trust
given its 4.9% dividend.

The portfolio is concentrated, with the top 10 at 48.2% and the gearing is a consideration at 1.2x again something investors
should be aware of.

Access Fund Detail Here
Intention to Float

Woodford Investment Management LLP has announced its intention to raise £200m through the launch of Woodford Patient
Capital Trust. Woodford Patient Capital Trust will invest in a diversified portfolio consisting predominantly of UK companies,
both quoted and unquoted

Investec Economics
MPC reaction – Steady, but key steers due next week

The Monetary Policy Committee left the Bank rate at 0.5% and its outstanding QE target at £375bn at its February meeting,
thus maintaining the stance of policy and providing no surprises. It was not clear whether the volatility of energy prices and
revised expectations for CPI inflation would prompt the committee to issue an explanatory statement, but members chose
not to. However two events over the following week will help to convey the MPC’s key thoughts.

February’s Quarterly Inflation Report (IR) is due next Thursday (note, this has been pushed back from Wednesday). In
November the projections showed the economy growing a little above trend over the medium-term with inflation expected to
Heads of Product
Sales
Sales Trading
Market Making
Corporate
Jamie Lowe
Charles Stagg
Carl Goossens
Peter Brown
David Anderson
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+44 (0) 20 7597 5063
+44 (0) 20 7597 5097
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Fin Bodman
Edward Malone
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[email protected]
Readers in all geographies please refer to important disclosures and disclaimers starting on page 6
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be at 2% in three years’ time, conditioned on a set of gradual increases in the Bank rate from this summer. IRs tend to
convey a number of messages, but three key points to watch this time are as follows.

First, the short-term CPI profile will probably show that there is a significant chance that the targeted measure moves into
negative territory for a while during the spring. This compares with a central forecast three months ago where CPI was
expected to bottom out around 1%. We suspect though that, in common with November, the inflation projections will rise
towards the 2% target over the medium-term. In fact it is possible that the central projection lies a little above 2% in Q1
2018, as the path of implied market rates which the BoE builds into its forecasts does not include a tightening until summer
2016. Essentially the CPI projection may be interpreted as whether the MPC collectively endorses the extent of the
flattening of the yield curve over the past three months or refutes it.

Second, while the provisional outturn for GDP in 2014 of 2.6% lies some way below the MPC’s November projection of
3.5%, those for ensuing years may not see much change from 2.9% and 2.6% for 2015 and 2016, respectively. However a
meaningful downgrade of the committee’s GDP projections would support the likelihood of a later tightening.

Third, a strengthening in pay growth is almost a necessary condition for the MPC to begin to raise interest rates. Both
headline and underlying measures of wage pressure have firmed modestly since the previous IR (total weekly earnings
growth is currently running at 1.7%) and the committee’s view on pay may be seen as a broad litmus test on its potential
appetite to raise rates before the end of the year. Given this recent trend the MPC still seems set to continue to forecast
increasing compensation growth, though the new assumptions may not quite match the 3¼% by the end of this year that
has been in the BoE’s arithmetic in the last two IRs.

The second set of clues on the MPC’s intentions will be the Governor’s open letter to the Chancellor, thanks to inflation
having fallen below 1% in December. Under the terms of the remit, Dr Carney has to set out the outlook for inflation, which
of course will be the principal subject of the IR. But he also needs to explain the policy action which the committee is taking
in response, perhaps giving markets a more explicit policy steer i.e. how concerned the committee is over the current period
of low inflation and its inclination to ‘look through’ it.

Overall the clues on growth, pay and any apparent rejection or endorsement of the shallowness of the yield curve will shape
our expectations of when the committee believes that it may begin to normalise the level of interest rates. Our view is that
rates will begin to rise in Q4 this year but any guidance from the central bank will help to shape our views. We stand by our
view that despite the fall in the short-term inflation outlook and a number of surprises from a number of central banks,
restarting the BoE QE programme is not on the cards.

To access a printable version of this note please click here
Daily Article
Investors Like Pfizer Deal Even Though It Paid a High Premium

Pfizer Inc. paid a high premium to land Hospira Inc. and investors appear to be happy that the U.S. pharmaceutical giant
was willing to pay up for the seller of injectable drugs. Shares of Pfizer jumped 2.9% Thursday, following the announcement
of its $16 billion all-cash deal for Hospira.

Pfizer paid Hospira a premium of 39% to the company’s one-day and one-week closing price. The average one-week
premium for U.S. deals this year was 31% overall and 26% for all U.S. healthcare deals, according to Dealogic. And that
comes on top of the already high multiple that the market was valuing the company at ahead of the deal announcement.
Hospira was trading at roughly 33 times its earnings per share of the previous twelve months, above the majority of its key
competitors, according to FactSet. Pfizer, by contrast, trades at roughly 20 times its EPS over the last twelve months.

Even with an elevated price tag, Pfizer expects the deal to immediately add between 10 to 12 cents to its EPS within the
first year the deal closes, and Pfizer is predicting a closing time in the second half of 2015.

Investors also like the potential for cost cuts that will help ratchet down the actual cost to Pfizer over time. Pfizer predicted
that it would find so-called synergies of $800 million over three years with this deal. The cost savings exceed Hospira’s
earnings before taxes, interest and deprecation for the trailing 12 months through Sept. 30, 2014.

Full Article Here
Page 2 | Friday, February 06, 2015 |
UK Listed CEFs: Price, NAV and Volume
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
Price 1wk
Price Fallers 1 Week
NAV 1wk
Price Gainers 1 Week
Fund Name
Ticker
Tiger Resource Finance Ord
TIR
Pioneer High Income Trust Ord
CATCo Reinsurance Opps Ord
%
Fund Name
Ticker
-23.3
Cushing Roy alty & Income Fund Ord
SRF
10.9
PHT
-16.6
CapMan Ord
CPMBV
10.4
CAT
-10.5
Elephant Capital Ord
ECAP
8.8
Golden Prospect Precious Metal Ord
GPM
-8.5
Kay ne Anderson MidstreamEnergy Ord
KMF
8.7
International Biotechnology Ord
IBT
-8.5
Tortoise Energy Independence F Ord
NDP
8.3
El Oro Ord
ELX
-8.3
Cushing Renaissance Fund Ord
SZC
8.0
Arc Capital Holdings Ord
ARCH
-6.6
BlackRock World Mining Trust Ord
BRWM
7.1
Dragon Ukrainian Properties Ord
DUPD
-5.2
JPMorgan Russian Securities Ord
JRS
6.7
International Oil & Gas Techno Ord
OGT
-4.9
Voy a Natural Resource Equity Ord
IRR
6.6
Ottoman Fund Ord
OTM
-4.8
Duff & Phelps Select Energy ML Ord
DSE
5.9
Fund Name
Ticker
%
BB Biotech AG Ord
BION
Turkish Inv estment Fund Ord
JPMorgan Brazil Ord
NAV Fallers 1 Week
%
NAV Gainers 1 Week
Fund Name
Ticker
-6.4
RAB Special Situations Ord
RSS
12.2
TKF
-5.2
JPMorgan Russian Securities Ord
JRS
9.1
JPB
-4.6
Cushing Roy alty & Income Fund Ord
SRF
8.7
MS China A Share Ord
CAF
-4.6
BlackRock Commodities Income Ord
BRCI
6.1
JPMorgan Indian Ord
JII
-4.3
New City Energy Ord
NCE
6.1
Vietnam Enterprise Inv estments Ord
VIETENI
-4.1
Mint Income Fund Ord
MID.UN
6.0
Third Point Offshore USD Ord
TPOU
-4.1
Nuv een All Cap Energy MLP Opps Ord
JMLP
6.0
India Fund Inc Ord
IFN
-3.9
BlackRock World Mining Trust Ord
BRWM
5.7
Vietnam Grow th Fund Ord
VIETNGF
-3.9
Goldman Sachs MLP and Energy R Ord
GER
5.6
New India Ord
NII
-3.6
Tortoise Pipeline & Energy Ord
TTP
5.4
Fund Name
Ticker
Ratio
Fund Name
Ticker
Artemis Alpha Trust Ord
ATS
2.3
Central Fund of Canada Ord
CEF
12.6
Dex ion Absolute GBP Ord
DAB
2.3
BB Biotech AG Ord
BION
10.6
BBGI SICAV Ord
BBGI
2.1
Kay ne Anderson MLP Ord
KYN
10.1
Scottish Oriental Smaller Cos Ord
SST
1.9
3i Ord
III
8.2
Inv esco Asia Ord
IAT
1.9
MS China A Share Ord
CAF
7.4
Third Point Offshore USD Ord
TPOU
1.6
PIMCO Dy namic Credit Income Ord
PCI
6.7
JPMorgan Asian Ord
JAI
1.6
EV Tax -Managed Global Fund Ord
EXG
6.0
Henderson Far East Income Ord
HFEL
1.5
Tortoise Energy Infrastructure Ord
TYG
5.7
Aberdeen Asian Income Ord
AAIF
1.5
Pershing Square Holdings Ord
PSH
5.3
JPMorgan Clav erhouse Ord
JCH
1.5
DoubleLine Income Solutions Fu Ord
DSL
5.3
Daily Volume / 3m Volume
%
1 Month Average Daily Volume £m
£m
So urce: 2015 M o rningstar
Page 3 | Friday, February 06, 2015 |
US Listed CEFs: Price, NAV and Volume
Price 1wk
1.00
NAV 1wk
0.50
0.00
-0.50
-1.00
-1.50
-2.00
-2.50
-3.00
So urce: 2013 M o rningstar
Price Fallers 1 Day
Fund Name
MS China A Share Ord
MFS Gov ernment Markets Income Ord
TCW Strategic Income Ord
Stone Harbor Emerging Mkts FI Ord
Mac/First Glb Infrastructure Ord
AGIC Gbl Equity & Conv Income Ord
Asia Tigers Fund Ord
Aberdeen Asia-Pacific Income Ord
First Trust Specialty Finance Ord
JPMorgan China Region Fund Ord
Price Gainers 1 Day
Ticker
CAF
MGF
TSI
EDF
MFD
NGZ
GRR
FAX
FGB
JFC
%
-3.9
-2.2
-1.4
-1.2
-1.2
-1.2
-1.2
-1.0
-1.0
-1.0
Fund Name
Templeton Russia & East Europe Ord
New Germany Fund Ord
Tekla Healthcare Inv estors Ord
Tekla Life Sciences Inv estors Ord
Cornerstone Total Return Ord
BlackRock Energy & Resources Ord
First Trust Energy Infra. Fund Ord
Gabelli Conv ertible & Income Ord
BlackRock Health Sciences Ord
Economic Inv estment Trust Ord
Ticker
TRF
GF
HQH
HQL
CRF
BGR
FIF
GCV
BME
EVT
So urce: 2013 M o rningstar
NAV Fallers 1 Week
Fund Name
Turkish Inv estment Fund Ord
MS China A Share Ord
India Fund Inc Ord
MS India Inv estment Ord
Central Fund of Canada Ord
Tekla Life Sciences Inv estors Ord
China Fund Inc Ord
Aberdeen Asia-Pacific Inc Inv Ord
Cohen & Steers Div idend Majors Ord
Special Opportunities Fund Ord
So urce: 2013 M o rningstar
NAV Gainers1 Week
Ticker
TKF
CAF
IFN
IIF
CEF
HQL
CHN
FAP
DVM
SPE
%
-5.2
-4.6
-3.9
-3.0
-2.8
-2.6
-2.6
-2.3
-2.3
-2.3
Fund Name
Tortoise Pipeline & Energy Ord
BlackRock Energy & Resources Ord
Petroleum & Resources Ord
GAMCO Glb Gold Natural Res&Inc Ord
Aberdeen Australia Equity Ord
BlackRock Resources & Commdty Ord
MS Eastern Europe Ord
ASA Gold and Precious Metals Ord
Brookfield Glo List Infr Inc Ord
Nuv een Div ersified Commodity Ord
So urce: 2013 M o rningstar
Daily Volume/ 3m ADV
Fund Name
Cohen & Steers Closed-End Opp Ord
Clough Global Allocation Ord
AGIC Equity & Conv ertible Inc Ord
Central Securities Corporation Ord
First Trust Energy Infra. Fund Ord
Cohen & Steers Infrastructure Ord
Liberty All-Star Equity Ord
Nuv een Div ersified Div & Inc Ord
Alpine Total Dy namic Div idend Ord
Clough Global Opportunities Ord
Ticker
TTP
BGR
PEO
GGN
IAF
BCX
RNE
ASA
INF
CFD
%
5.4
5.3
4.8
4.0
3.6
3.2
2.9
2.8
2.7
2.6
So urce: 2013 M o rningstar
1 Month Average Daily Volume £m
Ticker
FOF
GLV
NIE
CET
FIF
UTF
USA
JDD
AOD
GLO
Ratio
2.4
2.0
1.9
1.9
1.8
1.8
1.8
1.7
1.7
1.5
So urce: © 2013 M o rningstar
Page 4 | Friday, February 06, 2015 |
%
2.6
2.3
2.2
2.0
1.9
1.8
1.5
1.4
1.4
1.4
Fund Name
MS China A Share Ord
BlackRock Resources & Commdty Ord
Tekla Healthcare Inv estors Ord
India Fund Inc Ord
GAMCO Glb Gold Natural Res&Inc Ord
BlackRock Energy & Resources Ord
DNP Select Income Ord
Nuv een Credit Strat. Income Ord
EV Tax Adv antaged Div idend Inc Ord
MS Emerging Markets Domestic Ord
Ticker
CAF
BCX
HQH
IFN
GGN
BGR
DNP
JQC
EVT
EDD
£m
7.4
3.3
3.1
2.9
2.9
2.8
2.6
2.6
2.4
2.3
So urce: © 2013 M o rningstar
Source: © 2014 Morningstar
UK Listed CEFs: 1yr Z-Scores UK funds > £150m
F&C Investment Trust Ord
3.88
JPMorgan Indian Ord
2.76
BBGI SICAV Ord
2.28
Fidelity European Values Ord
2.07
D
E
A
R
1.59
1.44
1.4
Third Point Offshore USD Ord
BH Macro GBP Ord
Schroder Asia Pacific Ord
1.36
JPMorgan European Growth Pool Ord
1.32
Polar Capital Technology Ord
1.24
BH Macro USD Ord
Brunner Ord
-1.93
JPMorgan Claverhouse Ord
-2.05
C
H
E
A
P
-2.21
Henderson Value Trust Ord
-2.3
Aberdeen Asian Income Ord
-2.32
Perpetual Income & Growth Ord
-2.36
Murray International B Ord
Dunedin Income Growth Ord
-2.51
Lowland Ord
-2.84
Merchants Trust Ord
-3.41
-5.04
Temple Bar Ord
5
4
3
2
1
0
-1
-2
-3
-4
-5
-6
Source: 2015© Morningstar
US Listed CEFs: 1yr Z-Scores UK funds > £150m
BlackRock Energy & Resources Ord
3.24
Petroleum & Resources Ord
2.57
1.87
EV Tax Advantaged Dividend Inc Ord
1.85
India Fund Inc Ord
1.85
Calamos Convertible & High Ord
D
E
A
R
1.77
1.75
1.46
PIMCO Income Strategy Fund II Ord
JH Tax-Advantaged Dividend Inc Ord
Tekla Healthcare Investors Ord
1.4
Reaves Utility Income Ord
1.36
MS Emerging Markets Ord
Central Securities Corporation Ord
-1.6
EV Tax Adv Global Dividend Inc Ord
-1.61
JH Financial Opportunities Ord
-1.71
TCW Strategic Income Ord
-1.86
C
H -2.08
E -2.21
A -2.23
P -2.26
GDL Fund Ord
Nuveen Diversified Div & Inc Ord
Source Capital Inc Ord
Nuveen NASDAQ 100 Dynamic Over Ord
Liberty All-Star Equity Ord
-2.4
-2.44
Delaware Enhanced Gbl Div&Inc Ord
4
3
2
1
0
-1
-2
-3
Source: © 2015 Morningstar
Page 5 | Friday, February 06, 2015 |
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Market Making
Peter Brown
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Edward Malone
Tel: +44 (0) 20 7597 5098
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Sales Trading
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Tel: +44 (0) 20 7597 5787
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Corporate Finance
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Page 6 | Friday, 06 February 2015 | www.investec.co.uk/research