Foreword
By Annabel Brodie-Smith
I hope you enjoyed the scorching summer. I lived it up in the south of France, spending time with my in-laws in the hills surrounded by vineyards and olive trees. We then headed to the Cote d’Azur to stay in a favourite place of mine, Beaulieu-sur-Mer – a belle epoque seaside resort. And it was a gastronomic tour of southern France – no holding back on the delicious croissants, moules marinière, îles flottantes (worth looking up if don’t know it!) and bottles of rosé. There was also a relaxed staycation in Oxfordshire – dog walks, river swims and country pubs.
September has brought a global bond sell off. Concerns about inflation following the Iran conflict’s escalation and worries over the high levels of government borrowing are the causes. But stock markets are currently holding up.
September has brought a global bond sell off. Concerns about inflation following the Iran conflict’s escalation and worries over the high levels of government borrowing are the causes. But stock markets are currently holding up. It’s perfect timing to quiz our fund managers on what’s going on in markets and the economy as the Investment Company Showcase approaches on 9 October.
I hope you’ll be able to join us near Liverpool Street Station at 133 Houndsditch, or you can attend online. Read our Showcase article to find out more. I’ve talked to four of the managers presenting to get a sneak preview of their sessions, including Job Curtis, fund manager of the City of London Investment Trust which is approaching a record 60 years of dividend increases. I’ve also spoken to Rhys Davies of Invesco Bond Income Plus, Olivia Markham of BlackRock World Mining and Masaki Taketsume, manager of Schroder Japan Trust who is coming over from Tokyo especially for the Showcase.
We have 30 fund managers talking on a host of different topics from emerging markets to Europe and income investing to infrastructure. Our keynote speaker is Julia Hoggett, CEO of the London Stock Exchange (LSE), one of the most influential women in the City, who described investment trusts “as the jewel in the stock exchange’s crown”. There are also presentations from Edinburgh Investment Trust, Monks Investment Trust, Mercantile Investment Trust, Cordiant Digital Infrastructure, Aberdeen New India Investment Trust and many more. And it’s free to attend for private investors who use the special Compass code, COMP26.
September means it’s back to school, so Ian Cowie is looking at investing for children. He explains, “As I know from personal experience, the cost of an education can be substantial – often exceeding what older generations spent on our mortgages – and fees are rising fast.” Tell me about it Ian – Fabian is going into the sixth form this year and Alexander is heading back to Edinburgh University to live in a flat that someone needs to pay for!
Our keynote speaker is Julia Hoggett, CEO of the London Stock Exchange (LSE), one of the most influential women in the City, who described investment trusts “as the jewel in the stock exchange’s crown”.
Ian tells us that research from the Barclays Equity Gilt Study shows companies listed on the LSE beat cash in 77% of five-year periods since 1899. And over ten consecutive years, shares delivered bigger returns than cash 91% of the time. So with the odds in his favour, Ian chose three investment trusts for his son and grandchildren, F&C Investment Trust, Scottish Mortgage and Alliance Witan. These have been listed on the LSE since 1868, 1888 and 1909 respectively and have delivered a positive return over one year, five years and ten years. They are all dividend heroes with long track records of consecutive dividend increases over 55 years, 49 years and 59 years. Let’s hope the grandchildren are grateful Ian!
Recently, the Healthcare and Biotechnology sector has thrived, delivering a 34% return over the last year. There’s been a number of exciting drug breakthroughs, so we asked our managers their views on the biggest innovations in their portfolio companies and the impact of AI and GLP-1 weight loss drugs. James Harries of STS Global Income & Growth Trust describes healthcare “as a reliable safe haven during market downturns”. Let’s face it we all need medication, whatever the economy is up to.
You may have seen that Saba is back and has requisitioned meetings at Gore Street Energy Storage Fund and Baillie Gifford US Growth. Don’t forget to vote through your platform for the Gore Street Energy Storage Fund AGM as voting closes next week - platform deadlines are earlier than the meeting itself.
Despite the media being full of autumn clothes and fresh starts, I’m holding on to summer until the solstice. I’m enjoying the fields returning to green and have been out blackberry picking but that’s enough autumn for now.
You may have seen that Saba is back and has requisitioned meetings at Gore Street Energy Storage Fund and Baillie Gifford US Growth. Don’t forget to vote at the Gore Street Energy Storage Fund AGM as voting closes next week.
Wishing you a great September.
Annabel Brodie-SmithCommunications Director, AIC
