By Annabel Brodie-Smith
Summer is coming with wild flowers, cow parsley and clover, rather than thistles and nettles, finally growing in the former lawn around the barn. I think it’s a picture of natural beauty but I’m sure some of the villagers agree with my eighty-seven year old Mother who thinks it looks unkempt and we should mow it…
“Some exciting news, the Investment Company Showcase will be back on 11 October. And there’s a new City location, 133 Houndsditch, near Liverpool Street and you can also attend online.”
It’s been a difficult time as my brother is ill in hospital, having tests to find out what’s wrong. My family, friends, walks in nature with Sherlock, the energetic dog, dealing with Moriarty – possibly the world’s most demanding cat, are all helping. It certainly puts everything into perspective – it’s not easy to live La Dolce Vita but you certainly have to try.
Some exciting news, the Investment Company Showcase will be back on 11 October. And there’s a new City location, 133 Houndsditch, near Liverpool Street and you can also attend online. We are bringing together more than 30 investment trust managers to discuss everything from technology and income to infrastructure and India. We have listened to your feedback and have more individual manager presentations this year. So please do register and Compass readers go free with this promotional code COMP1. Please do pop that on the form when you register The Investment Company Showcase 2024 | The AIC.
There has been a lot going on this week… The first debate between party leaders brings it home that we are going to vote on 4 July, although the results of the Indian election this week are a reminder that the polls don’t always get it right. And yesterday the European Central Bank was the first big central bank to cut interest rates in more than four years, an indication that the wave of inflation over the last three years is easing, and the economic brakes are starting to come off.
“Yesterday the European Central Bank was the first big central bank to cut interest rates in more than four years, an indication that the wave of inflation over the last three years is easing, and the economic brakes are starting to come off.”
So rather appropriately, Ian Cowie is examining European opportunities, with the European Parliament elections also taking place this month. He highlights: “Food and drink, healthcare and luxury goods amongst the areas where large and small Continental European companies can offer valuable diversification from American and British rivals.” As an investor in Fidelity European Trust, Ian delves into some of its portfolio holdings – ASML Holdings, Novo-Nordisk (more on this later) and LVMH. And he explains: “Without wishing to make light of serious issues, it is difficult to imagine a future in which the demand for chocolate and weight-loss drugs both fall at the same time.” Ian has hit the nail on the head!
Interestingly, Ian also mentions that he’s an investor in Tritax Eurobox, where the share price has jumped on the news that Brookfield Asset Management is considering a bid. There has been a flurry of mergers, bids and wind ups in property trusts as directors respond to shareholders’ preference for scale and liquidity and there may well be more to come. So with interest rate cuts in the offing, is it time to consider property investment trusts, known as REITs (real estate investment trusts)? After a torrid time, with discounts for the UK Commercial Property sector and Europe Property sector remaining wide, 25% and 28% respectively we asked analysts and managers for their views on this.
Richard Shepherd-Cross, Managing Director at Custodian Property Income REIT, said: “The only way is up. This isn’t just about sentiment. What’s driving this is the health of occupational markets… You can also tell there is money waiting to come in – every time the macro news suggests a higher probability of a rate cut, shares rally. When the odds diminish, they fall.” And James Upton, Chief Investment Officer at Urban Logistics REIT, said: “There is caution but increasingly we are seeing signs that investor appetite is returning. We’ve seen our discount start to narrow as investors look to get in ahead of the first rate cut.”
I said there would be more on the weight loss drugs – every week there seems to be exciting news about the medical benefits of these drugs made by Novo Nordisk and Eli Lilly. This week we found out that the weight loss drugs cut the risk of cancer by a fifth and provide a new weapon in the fight against the disease. So we asked the Biotechnology & Healthcare managers as well as some managers from the Europe sector about the potential for weight loss drugs, the risks and which companies are poised to benefit.
Trevor Polischuk who manages Worldwide Healthcare Trust explains the potential of these drugs: “In a word, enormous. The combination of incredible efficacy, long-term safety, and a massive addressable market in terms of global patient prevalence has created the largest therapeutic market opportunity I have ever seen in my career. And that is just in obesity…”
Wishing you a good month – let’s hope ‘Flaming June’ puts in an appearance at some stage.
See you next month.
Annabel Brodie-SmithCommunications Director, AIC
