By Annabel Brodie-Smith
Wet wet wet sums up September. Our drive turned into a lake (again!) and many local roads were flooded. Getting the boys to school or getting to the station took ages. But today is a cold sunny day and at last we can enjoy the countryside in its autumn colours!
We have had some good news for investment trusts and their investors – the government and FCA have announced changes to the misleading cost disclosure rules. When it is published we will be participating in the FCA's consultation on the new rules to ensure they recognise the unique characteristics of investment trusts, permanently end misleading cost disclosures and enable investors to make better informed decisions.
“We have had some good news for investment trusts and their investors – the government and FCA have announced changes to the misleading cost disclosure rules.”
With the US election proving too close to call, I have been talking all things stateside with our North American fund managers. I lived in the US for two years while I did my MA and was a teaching assistant at Syracuse University in snowy upstate New York. I have very fond memories of the land of Don Mclean’s ‘American Pie’, so it was fascinating to hear the views of Gary Robinson of Baillie Gifford US Growth Trust, Dean Orrico of Middlefield Canadian Income and Sven Anders of JPMorgan US Smaller Companies Investment Trust. Their views illustrate the diversity of opportunities in the US and how the widening of the US rally is impacting their investment choices. I encourage you to listen to their thoughts and enthusiasm for the land of the free.
And don’t miss our press release on the impact of the US election. Markets could be volatile in the short term but managers are not too bothered over the longer term. Jeremiah Buckley, Manager of the North American Income Trust said: “When we look at history, there hasn’t been a material difference in the performance of the US equity market when either party has the presidency.” Felise Agranoff, Co-manager of JPMorgan American Investment Trust said: “Whilst the US presidential election may spark some market jitters, due to uncertainty regarding the winner’s domestic political priorities and their stance on various geopolitical situations, the economy appears to be on a sound footing and should be supported as we enter a cycle of interest rate cuts.”
“When we look at history, there hasn’t been a material difference in the performance of the US equity market when either party has the presidency.”
Our investment expert, Ian Cowie has delved into Renewable Energy Infrastructure investment trusts which “enable investors to make their money make a difference for the better and be paid decent dividends to be patient, as well as offering potential for capital growth.” If that sounds all too good to be true, Ian reminds us that our new government is committed to making Britain “a clean energy superpower.”
At the end of 2021 in the heady days of low interest rates, the sector traded on a 7% premium but rising rates have led to tough times with discounts widening to 20% and returns lagging the average investment trust. Ian is looking for Renewable Energy Infrastructure trusts with “long track records of delivering rising dividends and capital growth.” He investigates Greencoat UK Wind, Bluefield Solar Income Fund and Foresight Environmental Infrastructure. He also reminds us about other ways to access renewable energy including Ecofin Global Utilities and Infrastructure in the Infrastructure Securities sector.
“…it’s only one week until the Investment Company Showcase on 11 October at 133 Houndsditch, near Liverpool Street station. Please do come or attend online – I will be there moderating the global and India panels – it’s all go!”
Finally, it’s only one week until the Investment Company Showcase on 11 October at 133 Houndsditch, near Liverpool Street station. Please do come or attend online – I will be there moderating the global and India panels – it’s all go! We have more than 30 investment trust managers covering a panorama of topics from income investing and more unusual approaches to the UK, to renewable energy infrastructure and technology.
Don’t just take my word for it; listen to private investor, Sue Lyons’ views on the Showcase and what she learned from it last year.
Compass readers go FREE with the promotional code COMP4 so make sure to pop that on the form when you book.
With the Showcase fast approaching, I have been talking to Mike Seidenberg from Allianz Technology Trust and Jasmine Yeo from Ruffer Investment Company about what they are presenting on at the Showcase and what they are most looking forward to. I asked them about markets and how they became a fund manager too. We have also been asking all the questions nosey people like me would like to ask them. Yes – Mike went to Cambodia to visit Angkor Wat earlier this summer and at the weekend Jasmine enjoys “a leisurely cycle to explore new areas of London, with multiple coffee and pastry pitstops.”
Hope to see you at the Showcase next week!
Annabel Brodie-SmithCommunications Director, AIC
