By Annabel Brodie-Smith
Winter is on its way – it’s much colder, darker and my children have all gone down with the lurgy. The scarves and gloves are out and I’ve had some lovely Oxfordshire walks when it’s been dry.
We also now have an election campaign underway and live in hope that this might lead to the end of Brexit uncertainty… The political campaigning has already put the NHS in the spotlight and it therefore seems highly appropriate to lead this month on BB Healthcare Trust’s views on the developed world’s healthcare systems. They argue that “the trope that the NHS simply needs more money is mere political expediency” but the good news is “myriad new technologies have credibly demonstrated that the healthcare treatment paradigm is ripe for change, offering both improved care and lower costs.” BB Healthcare was launched to invest in this healthcare revolution and it’s fascinating to hear more about their investments. Sentiment towards property is also much affected by the political uncertainty and Brexit. With Mothercare, the latest high street casualty, going into administration the outlook for property may be of interest to contrarian investors. We have asked UK commercial property managers for their views on the sector which is currently trading at a 1% discount and yielding 5.1%. They are relatively optimistic in difficult circumstances. Peter Lowe of BMO Real Estate Investments argues: “While there will be continued near-term disruption and the potential for ongoing volatility in markets, the sector is in relatively good health and offers much for the medium-term investor.” Similarly, Will Fulton, manager of UK Commercial Property REIT believes: “In spite of the uncertainty facing businesses, the occupational market is generally stable with the exception of the retail sector which faces its own structural challenges.” Watch our videos of Peter and Will to find out more.
Peter Lowe, Manager of BMO Real Estate Investments, discusses the benefits of investing in property with investment companies
The final piece by our investment expert Ian Cowie discusses the implications of the dominant and most concerning investment story of the year, the collapse of Woodford Investment Management. Ian discusses the lessons to be learnt about the all-important difference between an investment company structure and an open-ended fund structure. The open-ended fund, Woodford Equity Income, has been suspended since early June, so from then investors could not buy or sell the fund and it is now being wound up. On the other hand, investors can continue to buy and sell the investment company, Woodfood Patient Capital (WPCT) which is listed on the stock market. However, they may well not like the share price which is down to supply and demand for the shares. As a holder of WPCT, Ian goes on to explain why he has decided to hold onto the shares despite their poor performance. The investment company in the future is to be managed by Schroders and renamed Schroder UK Public Private Trust.
Will Fulton, Manager of UK Commercial Property REIT, discusses the benefits of investing in property with investment companies
I expect many of you already understand the income benefits of investment companies, but if you need a refresher or know someone who would benefit, please do take a look at our recent educational video in which financial advisers explain how investment companies work for income. They also explain the AIC dividend heroes and how to make a start on researching investment companies. Finally, the video highlights Income Finder, our new tool designed to help income seekers research and analyse investment companies.
Financial advisers discuss the benefits of investment companies when it comes to paying income.
The next Compass goes out on the day of the election result if there is a majority!
Wishing you a good month.
Annabel Brodie-Smith Communications Director, AIC
