By Annabel Brodie-Smith
Christmas is coming and as ever there’s plenty to do… this weekend the festivities kick off with the legendary village candlelit carol service, where each family does a reading. I’m ready for a proud Mother moment (both boys are reading) and then there’s mulled wine and the first mince pies of the season.
The Christmas tree and wreath are coming the following weekend – time to get out the ladder and deck the halls. I'm very fortunate to have more than two weeks of holiday coming up, only interrupted by a trip to the office for our Christmas lunch – what a hardship!
“Christmas is coming and as ever there’s plenty to do….”
This year the plan is for a quiet family Christmas – a big relief after last year’s cast of thousands. I’m planning a girls’ trip to London to catch up on an exhibition at the V&A – such a glorious building. And I always like to go to Fortnum & Mason and do some Christmas cheese shopping at Paxton & Whitfield. I’m looking forward to blissful empty days of dog walks followed by a slice of my son’s Christmas cake.
But in the meantime, this week we have been finding out about the year that was 2024 and what 2025 has in store. Our annual fund manager poll is back with managers tipping healthcare to be the best performing sector in 2025. Inflation is considered to be the single biggest threat to equities in the next 12 months.
It was fun to talk to Paul Niven of F&C Investment Trust, Jean Roche of Schroder UK Mid Cap Fund and Carlos Hardenberg of Mobius Investment Trust. In this year’s poll 28% of fund managers tipped the US to be the best performing region. Paul makes a strong case for the US. He thinks growth will slow modestly and rates will continue to come down, which will cushion the impact of high valuations. He thinks the premium earnings of technology and the Magnificent Seven will diminish over the next year but will still be positive, and his view on Trump’s tariffs is definitely worth listening to.
For the last three years, managers have tipped the UK to be the best performing region but this year it comes second, with 24% of managers expecting it to be best. Jean Roche is optimistic about the UK’s prospects, with UK mid caps right up there in terms of growth prospects. She expects more M&A to continue as cash rich companies at low valuations are proving irresistible to buyers. And the good news is Jean thinks Santa is coming to town and he might be buying presents from her stocks, namely Computacentre, Currys, Watches of Switzerland and Pets at Home.
And the third area that was tipped to perform well was Emerging Markets, with 16% of managers thinking they will perform best. Carlos Hardenburg’s enthusiasm for Asia and the entrepreneurial spirit there comes across strongly. He says, “AI is the name of the game in Asia” and the good news is he thinks there’s a couple of Nvidia’s in Asia – not just one. Carlos thinks the ideas, technology and components that drive innovation in communication, new energy and the transformation of mobility are largely being developed in Asia.
“This month Ian Cowie reveals his investment trusts that have shot the lights out in 2024.”
This month Ian Cowie reveals his investment trusts that have shot the lights out in 2024. It’s an eclectic mix of ships – Tufton Assets, satellites – Edinburgh Worldwide, smaller companies – JPMorgan US Smaller Companies and AI – Polar Capital Technology Trust. An honourable mention also needs to go to F&C Investment Trust which has delivered 31% over the last 12 months to Ian’s grandson, Charlie – who’s investment is off to a flying start. Ian reminds us that, “Investment trusts bring the world within reach, including many wealth-creating opportunities of which this small shareholder was previously unaware.”
And on the topic of star performers, we have revealed the top performing investment trusts and sectors in the 11 months to the end of November 2024. The Growth Capital sector which takes minority stakes in early-stage private companies, performed best this year producing an impressive 47% return, followed by Private Equity with a 41% return. Seraphim Space’s stratospheric ascent makes it the top performing trust this year, followed by Petershill Partners, both from the Growth Capital sector. This year’s best performers tell an interesting story but it’s important to remember that investment is about the long term. Building a balanced portfolio of investments which suits your needs, rather than focusing on today’s winners, is most important.
“…we have a very special interview with Jeff Prestridge, Group Wealth and Personal Finance Editor at the Daily Mail Group.”
And finally, we have a very special interview with Jeff Prestridge, Group Wealth and Personal Finance Editor at the Daily Mail Group. Jeff has been a leading financial journalist since the late 1980s, so we are privileged that he has chosen to share with us his investment lessons and what he likes about investment trusts. Don’t miss it – it’s a Christmas cracker!
Thank you so much for all your support this year. I’d like to wish you a Merry Christmas and a Happy New Year.
Kind regards
Annabel Brodie-SmithCommunications Director, AIC
