Foreword
By Annabel Brodie-Smith
Well, I certainly got my wish. In Oxfordshire we have been enjoying barbecues and Aperol Spritz in the glorious Indian summer.
Markets are holding up but the bond sell-off is continuing. Concerns about AI safety and calls for a slowdown in development have hit the headlines. Bank of England governor, Andrew Bailey is the latest to call for ‘rigorous model testing’.
Get voting!
Last month shareholders of Gore Street Energy Storage voted for the continuation of the company at its AGM, but another crucial vote is fast approaching at the AGM of Baillie Gifford US Growth. Please do act swiftly and vote. The AGM is on 23 October but the voting deadline for platforms will be much earlier. Saba has rejected a generous exit offer from the existing board so it’s likely that Saba wants to take control of this investment trust and manage it. It’s vital that all shareholders make their voices heard at this AGM if they want the investment trust to continue with its current mandate and manager.
…another crucial vote is fast approaching at the AGM of Baillie Gifford US Growth. Please do act swiftly and vote. The AGM is on 23 October but the voting deadline for platforms will be much earlier.
Cowie’s strong performers during the Iran conflict
And the conflict in Iran is continuing with its associated impact on energy prices and inflation. This felt too close to home last weekend when there was a security incident at RAF Fairford. We all hope the conflict is resolved soon but as Ian Cowie, our investment expert explains, “It’s an ill wind that blows no good.” Some of Ian’s investment trusts have benefitted from restricted access to the Gulf and Suez Canal.
The ship leasing specialist, Tufton Assets has returned 22% in the seven months since the start of the conflict as shipping is having to take longer routes. Greencoat UK Wind, which operates and owns wind farms, has returned 25% since the start of the conflict. Restricted supplies of oil and liquefied natural gas have led to energy prices rising and have reminded governments and investors about the importance of energy security. And companies invested in technological innovation including Scottish Mortgage Trust, Seraphim Space and Polar Capital Technology have all thrived despite the drama of the conflict.
Many congratulations to the City of London Investment Trust and to manager Job Curtis on a record 60 years of consecutive dividend rises!
Why infrastructure investment trusts
Another sector that has performed well since the Iran conflict began is Infrastructure. The average Infrastructure trust has returned 11% and yields 5.4% after a difficult couple of years. Infrastructure investment trusts can deliver inflation-linked income for investors, often backed by long-term government contracts. This is particularly relevant with inflation rising due to the Iran conflict. Read our release to find out why infrastructure investment trusts have performed well, how infrastructure trusts protect investors’ money from inflation and their Budget wishlist.
A diamond jubilee trust
And many congratulations to the City of London Investment Trust and to manager Job Curtis on a record 60 years of consecutive dividend rises! This impressive achievement highlights the remarkable resilience of the dividend hero investment trusts which have increased their dividends every year for more than 20 years. City of London has continued to raise its dividends during high inflationary periods in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic. And manager Job Curtis will be the keynote speaker at the AIC Investment Company Showcase next Friday. I’m sure Job will be explaining how he prioritises “patience, valuation discipline and long-term thinking” to negotiate the varied market conditions.
Researching investment trusts on our site
Most Compass readers will know that the AIC website has a range of tools to help investors research, compare and keep track of investment trusts. Now we’ve made a series of short video tutorials to show you how to get the most out of them.
The Investment Company Showcase
We have 30 fund managers talking on a host of different topics from Japan to Europe and from Commodities to emerging markets. And it’s free to register for private investors who use the special Compass code, COMP26.
The Investment Company Showcase is fast approaching. I hope you’ll be able to join us on Friday 9 October near Liverpool Street Station at 133 Houndsditch, or you can attend online. We have 30 fund managers talking on a host of different topics from Japan to Europe and from commodities to emerging markets. And it’s free to register for private investors who use the special Compass code, COMP26.
Other events and news
There are two more events in November. The Sharesify Wealth & Retirement Show will take place on Friday 6 November at The Minster Building from 9am to 5pm. AIC Chief Executive, Richard Stone will be participating on the income panel. Please register to get 50% off the cost of your tickets.
On Friday 6 November, the MoneyWeek Wealth Summit takes place at TOGETHER, 88 Wood Street, Barbican, London. Please register and use a 10% discount code for Compass readers - AIC2610.
Finally, QuotedData’s Investors Choice Awards is back. You get the chance to vote for your favourite fund in 11 categories and the chance to win £5,000.
We are looking forward to seeing many of you at the Showcase next week. I’m moderating the infrastructure, property and UK small and mid-cap panels. No rest for the wicked!
Do come and say hello.
Annabel Brodie-SmithCommunications Director, AIC
