Foreword
By Annabel Brodie-Smith
I hope you enjoyed the long hot summer. I had a relaxing two weeks at home wandering around Oxfordshire and the Cotswolds.
I have known Nick (Train) a long time... He is refreshingly frank about what he is trying to achieve at Finsbury: “Really what I want to do is make the NAV of this investment trust go up a lot so I and fellow shareholders can make a lot of money out of it.”
The good news is my eldest son Alex is off to Edinburgh University to read Theology and Philosophy. He starts this Sunday, so it’s all very exciting and happening soon.
And the Investment Company Showcase is also happening soon. It’ll be held on 10 October at 133 Houndsditch, near Liverpool Street station. You can also attend online, where you can watch your choice of 30 fund managers talking about a wide range of topics including Trumponomics, China, the UK, infrastructure, international income, private equity and biotechnology. And it’s free for private investors to register with the special discount code for Compass readers, COMP1. You can register here or find out more in our article on the Showcase.
Recently, I spoke to some of the fund managers taking part in the Showcase to find out why they became fund managers and what they will be speaking about at the Showcase. Do watch my chats with Abby Glennie of abrdn UK Smaller Companies Growth, Maggie Fanari of RIT Capital Partners and Jack Caffrey of JPMorgan American.
I also spoke to our keynote speaker, Nick Train, manager of Finsbury Growth & Income Trust. I have known Nick a long time and he is a unique combination of integrity, charisma, humour and humility. He is refreshingly frank about what he is trying to achieve at Finsbury: “Really what I want to do is make the NAV of this investment trust go up a lot so I and fellow shareholders can make a lot of money out of it.”
Markets have had a strong summer with the average investment trust up 9.5% so far this year. One of the markets that has been hitting all-time highs is Japan and this month our investment expert Ian Cowie is exploring the market.
And he’s funny, saying “It was my destiny Luke” when asked why he became a fund manager. He explains how he’s “fascinated by history”, “a patient person” and has “a streak of miserliness”. His passion is clear for “this once-in-a-generation opportunity to access the shares of absolutely outstanding London-listed UK companies at ridiculous valuations relative to their peers”.
We will also be joined by Baroness Helena Morrissey, an industry expert and founder of the 30% Club and chair of the investment industry's Diversity Project. She was CEO of Newton Investment Management for 15 years and the former chair of the Investment Association.
Ian reminds us that the AIC Japan sector is up 20% this year but still trades at a 9% discount. He analyses AVI Japan Opportunity Trust which is the top-performing Japan trust over a year delivering total returns of 28%.
This trust plans to merge with Fidelity Japan Trust and if approved its management fee will reduce, with a tiered fee introduced on assets above £300m. Ian highlights Schroder Japan Trust for income seekers with a dividend of 4% and returns of 19%, 101% and 157% over one, five and ten years. And he mentions CC Japan Income and Growth, which yields 2.6% and has delivered returns of 8% and 96% over the past one and five years.
Investment trusts have many income benefits and one of the most important is their ability to retain up to 15% of their income each year, building up reserves in good years to support dividends in tougher times. But how do you go about selecting an investment trust for income?
Finally, we have a helpful article on how income seekers can use the AIC website to find income investment trusts. Investment trusts have many income benefits and one of the most important is their ability to retain up to 15% of their income each year, building up reserves in good years to support dividends in tougher times. But how do you go about selecting an investment trust for income?
Our free tool Income finder can help. It will show you an investment trust’s dividend payment history, displaying the value of past distributions based on the number or value of shares you specify. We hope our site and Income finder help you to build a portfolio of investment trusts that delivers income for you throughout the year.
The heavy showers have arrived, the leaves are falling and we are busy gathering blackberries, apples, plums and delicious, sweet grapes from the vine.
Yes it’s back to school but it’s also back to baking! I hope you have a lovely month.
Annabel Brodie-SmithCommunications Director, AIC
P.S. Would you like to vote for your favourite investment trust? The QuotedData Investors’ Choice Awards 2025 gives you that opportunity. And you could win £5,000 if you come closest to predicting the winners in each of the 12 categories. Find out more here.
