Foreword
By Annabel Brodie-Smith
Christmas is coming and as ever it’s a busy time of the year….
The Christmas tree and wreath have been ordered but no shopping has been done and no cards have been written. My brother is ill in hospital so lots of visiting is taking place. However, the good news is we are going to be together this year. Alex, my son is coming home from Edinburgh University, Fabian finishes school next week and my in-laws have already arrived from France.
I’d like a relaxed Christmas - some mulled wine, mince pies, country walks and sitting by the fire. But relaxed and Christmas don’t usually go together. Still I’ve got lots of time to get organised and step into Christmas. Quite frankly, crawling into Christmas would be a more appropriate description this year!
I’d like a relaxed Christmas - some mulled wine, mince pies, country walks and sitting by the fire. But relaxed and Christmas don’t usually go together…
Backwards and forwards
This month we are analysing this year’s events and looking ahead to what 2026 has in store. On Tuesday I was lucky enough to talk to Job Curtis from City of London, Lawrence Burns from Scottish Mortgage and Dale Nicholls from Fidelity China Special Situations. Watch the interview to find out how their year went, what they are most proud of and what are the risks and opportunities in 2026. Of course, I asked them about the tech (AI) bubble and what would be the impact of it bursting on their investment trust. I think this is my favourite webinar of the year. Of course, webinars are like children – you can’t have a favourite – but this one is very good.
Looking forward, emerging markets are predicted to be the best performing region next year and over the next five years according to the AIC’s fund manager poll. And the UK was the second favourite region over both one and five years. Information technology was predicted to perform best next year, followed by consumer staples and healthcare. But on a five-year view energy is the most tipped sector. Of course, no-one has a crystal ball, but the mix of views even among professional investors indicates that it’s wise to have a diversified portfolio.
…no-one has a crystal ball, but the mix of views even among professional investors indicates that it’s wise to have a diversified portfolio.
And congratulations to our readers who are shareholders in Golden Prospect Precious Metals. This is the top performing investment trust this year returning an almighty 156.3% to the end of November. Not surprisingly, the Commodities and Natural Resources sector is also the best performing sector returning 43.9% over the last eleven months. Check out the best performing trusts and sectors to find out the winners. Personally, I hold one of the top ten trusts and have exposure to six of the best performing sectors. Again, it’s interesting to see what’s done best but to paraphrase Scottish Mortgage’s Lawrence Burns – we shouldn’t get too caught up with what happened over the last year – a year is a short time when it comes to investing.
Something we’d rather forget
This month Ian Cowie is looking back on something a lot of us would rather forget – the Budget. He covers the cut to the upfront income tax relief on VCTs from 30% to 20% which comes into effect on 6 April next year. The AIC had a lot to say about this on Budget day as we think this cut undermines the incentive to invest in VCTs. Advisers and investors will be less likely to invest in VCTs which support young ambitious companies and far from nurturing economic growth, it will cut off vital funding. Having said this, there was some positive news for VCTs as the Chancellor expanded VCT investment limits and increased the size of companies that VCTs can invest in. Ian expects that despite some changes announced in the Budget many investors will continue to benefit from ISAs and pension tax shelters.
Christmas is fast approaching and Saba, the US activist has again requisitioned a meeting at Edinburgh Worldwide, one of the seven trusts they targeted last year. This year they are seeking to remove Edinburgh’s independent board again and replace it with a different independent board. Please do make sure you vote your shares – this meeting will influence the future of your investment trust.
This year they (Saba) are seeking to remove Edinburgh’s independent board again and replace it with a different independent board. Please do make sure you vote your shares – this meeting will influence the future of your investment trust.
Thank you so much for all your support this year. I’d like to wish you all a Merry Christmas and a Happy New Year.
Annabel Brodie-SmithCommunications Director, AIC
