David Moss, the fund manager overseeing the Columbia Threadneedle UK High Income trust, has taken a bullish stance on London Stock Exchange Group (LSEG), purchasing shares and publicly rejecting concerns about artificial intelligence (AI) disrupting the exchange operator's business model. In a statement released early Thursday, Moss labeled fears over AI competition as “overblown,” signaling confidence in LSEG’s ability to navigate technological shifts.
The £132 million UK equity income trust, which focuses on high-dividend stocks, reported a total return of 18.3% for the year ending March 31. While this performance is solid in absolute terms, it fell short of the FTSE All-Share index benchmark, which returned 21.5% over the same period. The trust’s ordinary shares currently offer a dividend yield of 5.5%, while its B shares yield 5.8%.
Moss attributed recent declines in housebuilders such as Persimmon and Taylor Wimpey to geopolitical fallout from the Middle East conflict, which has weighed on the sector. He is scheduled to discuss UK equity investing on QuotedData’s panel later today, providing further insight into his strategy.
Outgoing chair Andrew Watkins praised the trust’s performance as “good” amid a volatile UK market environment, which has been buffeted by new government policies and ongoing geopolitical tensions. The trust’s ability to generate income while navigating these headwinds underscores its focus on resilient dividend payers.
The broader market context remains mixed. Dow futures edged higher early Tuesday, pointing to a cautious open for Wall Street as investors weigh mixed economic data and fluctuating oil prices. The S&P 500 and Nasdaq are expected to open with modest changes, following a period of volatility driven by corporate earnings reports and shifting economic indicators.
Geopolitical developments are also in focus, with oil prices and stock markets showing volatility as the U.S. and Iran edge closer to a potential cease-fire agreement. Such a deal could ease regional tensions and stabilize energy supplies, but traders remain cautious amid uncertainty. In Australia, shares rallied 1.6%, marking their best day in seven weeks, fueled by optimism over a U.S.-Iran deal that could reopen the Strait of Hormuz and lower crude prices.
Insurance Australia Group (IAG) shares rose 1.06% after settling the long-running Greensill litigation, removing a key legal overhang. The agreement covers more than half of IAG’s claimed exposure related to trade-credit insurance tied to the failed Greensill Capital. IAG stated the settlement will not materially impact its financial position or FY26 results, easing investor concerns.
In the debt markets, new securities were listed by several issuers, including Iceland (Republic of), the Inter-American Investment Corporation, and the European Bank for Reconstruction & Development. Barclays Bank PLC also introduced securitised derivatives, while Mitsubishi HC Capital UK and Canadian Imperial Bank of Commerce listed floating rate and interest-linked redemption notes. These additions highlight ongoing activity in fixed-income markets, offering diverse opportunities across currencies and maturities.
