By Annabel Brodie-Smith
Hope you are enjoying the autumn sunshine. I have gone for a boat trip on The Thames and made a blackberry and apple crumble with hand-picked blackberries, so I’m making the most of my first autumn in the country.
This month, we are looking at the positive impact independent boards of directors have on their investment companies. Independent boards stand up for the interests of shareholders and are a clear benefit that sets investment companies apart from the open-ended industry. Please watch my interview to get an insight into directors and what independent boards do. I talk to Clare Dobie, director of Alliance Trust, Robert Jeens, Chairman of Allianz Technology, and Gay Collins, Director of JPMorgan Global Growth & Income. Please also see our article on the role of boards with examples of what they have done to help, and in some cases transform their companies.
Our esteemed financial journalist, Ian Cowie, this month delves into boards and questions a number of experts to find out more about what boards do. This includes the view of James de Sausmarez, head of investment trusts at the asset manager Janus Henderson, who explains: “The board challenges and questions, they ask why a fund manager is doing what he or she is doing - and I think managers enjoy the interaction. If you are an individual investor, it’s enormously comforting to know there is a group of diversely skilled people overseeing the manager.”
Talking of boards, the AIC’s Ian Sayers describes how investment company independent directors are “up in arms” about the “reckless” Key Information Documents (KIDs). Every investment company has to produce a KID, which private investors must view before purchasing investment company shares on platforms.
Click below to watch the video.
The AIC and the industry’s views are summed up in the title of the research we produced demonstrating the problems of KIDs, ‘Burn before reading’. Ian explains that if investors are misled by the KID document: “It will be a regulatory scandal, one we have being warning about since 2010 when KIDs were first being developed (yes, you did read 2010 right).” The AIC and the industry are calling robustly for KIDs to be suspended so the rules can be changed before more harm is done.
On a totally different subject, the Brazilian election is on Sunday 7th October so we are taking a look at investment company managers’ views on the prospects for Brazil.
It’s been a rocky ride for Brazil investors, but with news that its recession has ended and the prospect of political change, investment company managers give their views as to whether the country will be celebrating in carnival fashion, or drowning their sorrows with cachaça.
Thanks so much for all your entries to our competition to win £3,000 to invest in an investment company. If you haven’t yet entered please do enter, as all you need to do is fill in our short survey on saving for children.
Finally on 30th November the 9th VCT & EIS Investor Forum (London) is taking place. This is organised by Angel News and is an opportunity to meet investment managers and the companies they back all in one place. There is a 15% discount on the ticket price for Compass readers: just enter the discount code AICREADER.
Wishing you a good month and let’s hope there are no Halloween ghouls in this year’s October Budget.
Annabel Brodie-Smith Communications Director, AIC
