DIY Investor Magazine

Following on from Kepler’s recent announcement of their 2024 Investment Trust ratings,

It’s an exciting time for investors in the investment trust sector, even if it might not feel like that right now.

Where are we today in terms of AI and its applications, and where are we going in the future?

IBT has delivered superior returns with lower volatility than the wider market…by Alice Rigby

Long-term capital growth

What shapes the pathway to net zero and what will be required to get there?

A recovering biotechnology sector points IBT to a growing opportunity in small caps…by Alice Rigby

An insight into the Schroder British Opportunities Trust plc

FSF offers strong ESG credentials and potential returns with low correlation to traditional assets...by David Kimberley

US mid-caps punch above their weight, and listed private equity trusts such as NBPE aim to tap into their potential…by Alice Rigby

JAGI’s distinct approach to stock picking means it has maintained exposure to Chinese consumer stocks poised to benefit from the country’s reopening…by Alice Rigby

BBGI’s availability style holdings offer strong protection against inflation…by David Kimberley

Could wide investment trust discounts represent an opportunity?

A few years ago, in the long-forgotten period that preceded the pandemic, anyone interested in investing could not do much without hearing about sustainability – by Alice Rigby

There are many risks for the global economy in 2023, but there are also encouraging signs

Warren Buffett’s decision to invest heavily in Japan over the past 12 months generated the usual annoying headlines about how great he is – by David Kimberley.

- The UK is a very international market with around half the revenues of UK-listed companies generated in the United States and Asia Pacific, with Europe also holding a major share.

Jon Cronin: Hello, and welcome to A Value View from The Merchants Trust, where fund manager Simon Gergel, offers his thoughts on developments affecting the UK market and what it means for investors. Simon, welcome to the show.

The EU’s efforts to catch up with the US’s massive move to support strategic green industries, jobs and clean technology signal a new era, writes Jupiter’s Environmental Solutions team.

Extract from the latest Connected Investor podcast from The Brunner Investment Trust

AIE’s approach has enabled it to deliver strong returns for investors…by David Kimberley

Large numbers of immigrants may continue to make Canadian real estate an attractive investment…by David Kimberley

Over the last 150 years the UK investment trust industry has survived depressions, wars, pandemics and many other crises.

Energy underpins our civilization and is vital for the survival of society. It is needed to heat and light up homes, power factories and transport food, people and everything else.

The Senate is currently split 50/50 with Vice President Kamala Harris casting tie-breaking votes on items that only require a simple majority – by Hugh Gimber and Meera Pandit.

The world seems a particularly unnerving place for investors at present, even by recent standards. High inflation, rising interest rates and the associated risk of recession in some major economies have generated high levels of financial market volatility.

Value may be en vogue, but it’s growth that ultimately delivers returns for shareholders… by David Kimberley

Downing Strategic Microcap may benefit if M&A buyers get active in the UK market…

Environment, Social and Governance (ESG) considerations cover a range of issues related to a company’s behaviour with respect to the environment and society, including its employment and health and safety practices – Guy Anderson, Portfolio Manager

Shares in Invesco Perpetual UK Smaller Companies Investment Trust plc are trading at 17% below their net asset value…by David Kimberley

A cost-of-living crisis, industrial unrest, fears over energy supply and the ongoing headache of Brexit - these are just some of the crunch points facing Boris Johnson’s successor.

Recession: how bad will it be?

Alliance Trust has protected shareholders from losses in a tough year for investors

DSM may deliver for those who are prepared to be patient...

Europe is often held up as the ‘poster region’ of sustainable investing and it’s certainly true that ESG (environment, social, governance) issues are generally more embedded there than elsewhere. But Japan is far from a laggard in this area, particularly when it comes to the ‘S’.

Amid continued volatility across emerging markets

Japanese shares sold off as Russia escalated tensions with Ukraine.

Trusts like MCT may benefit from rising prices and an economic bounce back...William Heathcoat Amory.

The Japanese equity market is sometimes dismissed by international investors as mature, staid and undynamic; but they make this judgement at their peril.

Volatile markets can be uncomfortable for investors and portfolio managers alike. As investors for decades in the emerging markets, the portfolio managers of the JPMorgan Emerging Markets Investment Trust plc (JMG) have found that anchoring around a sound strategy is key to navigating choppy markets.

The ‘S’ in ESG has never been more important. We explore some of the risks, as well as opportunities that exist in the UK stock market, and ask how companies can be more socially responsible.

You cannot talk about the investment case for India without first mentioning the country’s rapid economic growth. India’s economy grew at an average rate of 7.7% in the past two decades

Why building a balanced portfolio of robust dividend-payers should be well positioned to deliver attractive long-term returns.

Despite a shaky start to 2022 for many Asian stock markets, the region continues to offer a diverse selection of attractive companies at reasonable valuations

After a tough pandemic, commercial property recovered significantly in 2021

When it comes to choosing a private equity manager, it is vital to choose carefully...

The Mercantile Investment Trust invests in medium and smaller UK companies. The managers’ objective is to spot businesses with the potential to grow into ‘tomorrow’s market leaders’.

Private equity remains off-piste for most investors despite its appeal as a potential core holding…..

An ageing planet and more spending on healthcare may put wind in the sails of Brunner’s portfolio……

Ross Teverson, Colin Croft, and Matthew Pigott, portfolio managers of Jupiter Emerging & Frontier Income PLC, argue that investors may be better off looking beyond the obvious names in their search for those companies that are best positioned to drive, and to benefit from, the major technological changes playing over the coming years.

Asian shares offer a compelling proposition when it comes to investing for income.

The Asian smaller companies sector has been a fertile place to invest as recovery has emerged across the region

We unveil the winners of our ratings for 2022 in the Growth, Income & Growth and Alternative Income categories…

Alliance Trust is the only way ordinary UK private investors can get exposure to a select group of leading asset managers…

We take a look at a trust which could add significant diversification to income investors’ portfolios…

Fumio Kishida inherits a much brighter situation than his predecessor as the state of emergency is lifted. We look at what this means for investing in Japanese equities.

They are rich in potential, but often underestimated. See how J.P. Morgan Asset Management’s dedicated investment trust specialising in UK mid-cap companies could provide diversification as well as strong growth and income opportunities for your portfolio.

Chinese financial markets are broadening, offering greater accessibility and liquidity for investors

Marking its 25th anniversary, Momentum Multi-Asset Value Trust (MAVT) continues to deliver inflation-beating returns by investing in a highly differentiated range of assets, giving investors access to continually evolving holdings that they are unlikely to find in other funds…

SST’s tilt toward India has contributed to a strong set of results this year…

A simple practical step to take your portfolio from the 1990s into the 2020s...

As Fidelity Asian Values PLC turns 25 years old, portfolio manager Nitin Bajaj reviews how the dramatic changes seen in Asia have shifted the centre of economic gravity shift from West to East - and are mirrored in the growth of the trust.

European equities are back in vogue, with massive fiscal and monetary support, economic re-openings, and a sizable valuation discount relative to the US. All of which provide an attractive macro backdrop for investor

Though the move towards renewable energy, and in particular Solar Energy, may feel like a recent trend, the advent of our working relationship with the Sun goes back several millennia.

In the wake of the recent IPCC report, we think the major UK-quoted energy companies are in a good position to shift towards clean renewable energy sources.

This is an extract from the latest episode of the ‘A Value View’ podcast from The Merchants Trust.

A historically-wide discount is throwing ATT’s outperforming returns into a new light…

In a see-saw year for markets, income generation in the Murray Income Trust has held up well

Global equity investing is usually defined by either a ‘growth’ or ‘value’ approach but there are funds that blend these styles, offering a distinctive global equity investment…

Top-down portfolio characteristics can obscure the investment characteristics of a trust, particularly when it comes to multi-manager portfolios. Here, we examine how Alliance Trust maintains a high active share while still offering a diversified underlying portfolio…

North Asia is reaping the benefits of its effective Covid response but there are longer term factors behind the region’s outperformance too – by Richard Sennitt, Fund Manager, Asian Equities

Hopes are high for the UK’s economy and particularly UK stocks, given their relatively low valuations, as we begin to pick up the pieces after the COVID crisis, and the outlook for UK smaller companies is optimistic. However, a considered approach is key to avoid simply following the crowd…

As governments turn their focus towards the COVID-19 economic recovery, they are increasingly incorporating sustainability goals into their efforts. For sustainable investors, this presents a clear opportunity…

There is a tug of war in financial markets today: there is real concern that the stimulus programme will generate inflation and therefore higher interest rates.

After dividends were slashed through 2020, the case for income investors to reconsider portfolio allocations and diversifying their sources of income is clear…

Space is no longer just an opportunity for deep-pocketed governments and billionaires. The sector is now accessible to a wide range of entrepreneurs and companies looking to cash in on its growth potential. Here, we examine three key trends driving the commercial space industry this year and beyond.

A key advantage of the investment trust structure is the opportunity to buy well-regarded funds at discounted prices. Here, we explore one of them in depth…

Industrial and construction businesses are seeing activity bounce back after the disruption of 2020, but there are structural factors supporting longer term growth too - by Rory Bateman, Head of Equities and manager of Schroder British Opportunities Trust

Nicholas Price, portfolio manager of Fidelity Japan Trust PLC, discusses why he maintains a positive outlook for Japanese stocks.

Big in Japan: JFJ’s fund performance in the last decade - J.P. Morgan Investment Trust Team

Equity markets have seen a significant rotation over the past six months, however, the rotation may change in flavour from here

Investors are increasingly seeking a combination of growth and income but with dividends under pressure on the UK and Europe, it makes sense to consider your options further afield…

One of my favourite pieces of investment trust research is the AIC’s millionaires list;

Solving climate change can be the investment opportunity of our lifetime…if we focus on the companies that bring to market the relevant solutions

The newly renamed Momentum Multi-Asset Value Trust continues investing in quality value opportunities across different sectors in the UK, with deeper and stronger resources at its disposal…

Over the last three years, sustainability has gone from being something of an investment trend to an imperative for many investors…

Following a bold decision by its board, Jupiter US Smaller Companies is now known as Brown Advisory US Smaller Companies. Here, we introduce the new manager and explore the US based firm’s stellar track record in the space…

Seeking out the best opportunities for growth and reliable dividends wherever they may be, The Brunner Investment Trust invests in companies all over the world.

We've teamed up with DIY Investor Magazine so we can offer you even more insight on your approach to DIY investing. Sign-up to receive the latest edition direct from DIY.

Fidelity Special Values PLC wouldn’t be much fun at parties. Where other trusts are keen to get in with today’s high-flyers, the biggest growth names that attract all the attention, this trust prefers to frequent areas of the market that are, in manager Alex Wright’s words, “unfashionable”.

The UK market’s reputation for dividend strength took a knock in 2020, however, the outlook for the sector has markedly improved since the start of the year.

Asian shares have benefited from the region’s effective handling of the pandemic, but what comes next?

With the FAANGs floundering at the turn of this year, investors have been challenged by the dominance of Silicon Valley-centred stocks in their portfolios. Turning their investment lens Eastward could reveal world-leading technology opportunities…

How JPMorgan Global Growth & Income Investment Trust seeks to pick winners and deliver the best of both income and capital

The graph enclosed shows health expenditure per capita across the globe and highlights the enormous difference in spend in the western world compared to emerging markets – by Daniel Mahoney and Gareth Powell of Polar Capital Global Healthcare Trust.

An economic recovery is good news for UK mid- and small-cap stocks

Find out how the JPMorgan Emerging Markets Investment Trust achieves benchmark-beating growth from a sustainable portfolio.

The recent rotation has put a spotlighted how quickly an investment style can fall in or out of favour. For many investors, timing the market is a challenge, which makes a truly active yet balanced approach appealing...

Privately-owned companies offer a compelling opportunity for investors of all types. For many years large institutions have invested alongside more traditional, listed equities in unquoted businesses.

A reckoning for the US technology giants earlier this year has shown why a dedicated technology allocation could be vital to achieving success in this sector…

Kepler Trust Intelligence has published its 2021 investment trust ratings. The ratings seek to identify the top investment trusts in the growth, income & growth and alternative income categories.

The COVID-19 pandemic accelerated many profound shifts that were already taking place in the global economy, many of which resulted in a behavior adjustment and relied very heavily on the digital infrastructure – by Lenore Hawkins, Chief Macro Strategist at Tematica Research, partners of our digital infrastructure ETF

It’s a challenging time for investors, not least those in need of income generation. The coronavirus crisis continues to play out globally, with the UK hit worse than almost any other large economy at the start of 2021. Covid-19’s scars are likely to be with us for a long time and the path to economic recovery remains uncertain – Charles Luke, Investment Manager, Murray Income Trust PLC

ESG has become a buzzword in recent years but Jupiter Green, which has forged a successful track record in socially responsible investing since launching in 2006, was into it before it was ‘cool’…

Sitting in one of the few sectors to be positively impacted by COVID-19, we look at IBT how it delivers consistently attractive total returns…

The short-term investment outlook may be uncertain, but let dividends pay us to be patient, says Ian Cowie, Personal Finance Editor, the Daily Telegraph.

The swift revival in China’s economic activity creates a fertile backdrop for its corporate sector. Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, examines the investment opportunities ahead and explains how he is focusing on the structural trends accelerated by Covid-19.

UK-quoted companies are attracting good interest as global deal-making picks up again and FTSE 250 companies appear to be the candidates of choice

Financials remains one of the cheapest equity market sectors; they jumped sharply in price following the positive news around vaccines in November, as the sector is one of the biggest beneficiaries of economies opening up over the course of this year and into 2022 - Polar Capital Global Financials Team

2020 was an eventful year for the cannabis industry. After a strong start to the year, the coronavirus struck. Panicked investors withdrew from equities, especially from young and riskier industries such as cannabis.

A Value View: A return to Fundamentals?

Chern-Yeh Kwok, manager of the Aberdeen Japan Investment Trust, says there is real value in Japanese markets, but it is often overlooked by investors.

We take a look at MAJE, a trust which has seen a significant turnaround in performance and has the potential to continue delivering income and growth in 2021…

While 2020 has shown the difficulties of predicting the future, we believe a number of themes are likely to dominate in emerging markets this year.

With sentiment toward the UK improving, we see now as a fitting time to look at DSM and the exciting opportunities within the micro-cap focussed portfolio…

We take a look at SIGT, a multi-asset trust offering a solid income from a truly diversified portfolio…

Institutional investors have long thought of private markets as a way to boost returns. But the recent challenging economic conditions have further enhanced the role that private market investments can play in portfolios.

So, you’ve decided that you want to take a an active role in shaping your financial future; it’s a big step and often comes with a mixture of elation and trepidation; however, fear not, because you’ll never be short of sage advice from those that know just marginally more than you do – writes Hanah Barnaby.

Investors have much to think about when choosing and understanding investments; in particular volatility and the impact it can have on their investment – writes Christian Leeming.

I’ve been investing for over three decades and I don’t think any year has been as remarkable as 2020; there may be a lot of recency bias at play, but have we ever seen two such extremes in share prices, with both massive gains and massive losses?

We review the performance of the team’s ‘top picks’ for 2020 – including some proper plonkers – and place our bets for the year ahead…

Explore how the JPMorgan Emerging Markets Investment Trust tackles the challenge of ESG in emerging markets.

There is a high level of risk and reward in professional rugby. How can a player successfully manage this?

Ecommerce – the buying and selling of goods and services online has become a global phenomenon. In the western world, traditional highstreets and shopping malls are under pressure from their ‘ecom’ rivals whose product ranges, delivery speeds and convenience are improving every day.

With ISA season quickly approaching, we look at a trust which can offer attractive returns in both bull and bear markets, and has a track record to prove it…

Investment Insights from Silicon Valley - Electric vehicles feature prominently in the economic stimulus from governments across the world, writes Walter Price, Lead Manager

Increased spending world-wide as governments seek to kick-start economic growth may have added benefits – boosting sustainable projects. Could responsible investment solutions provide the necessary tonic for beleaguered policymakers and investors to change the face of both the global economy and society itself? Here, managers from across BNY Mellon Investment Management consider the likely road ahead.

Discover how the J.P.Morgan Emerging Market Investment Trust’s experience and expertise enable it to cut through the noise and focus on the fundamentals

This has been a golden decade for private equity. The financial conditions following 2008’s Global Financial Crisis were ideal for the asset class to flourish, with interest rates low and plenty of capital looking for higher growth assets. The question today is whether private equity can continue to thrive in the ‘new normal’ that emerges from the Covid-19 crisis?

The US election has given long-suffering value investors new hope of a ‘great rotation’ in their favour, but that light at the end of the tunnel could in fact be a train…

Covid-19’s widespread financial damage includes an unparalleled hit to company dividends, meaning more tough times for income investors.

Kepler Trust Intelligence looks at the unique approach to value investing taken by Seneca Global Income & Growth Trust…

Emerging market performance has lagged developed markets over the past few years, but there are early signs of a shift.

The ability to buy shares at a discount to NAV is one of the differentiating features of investment trusts versus open-ended funds and means they can potentially offer higher returns.

In this article we look at a number of catalysts that could see NBPE’s discount narrow, potentially offering a ‘double whammy’ in terms of returns for investors…

Unlike a share, where investors literally buy a share in a company’s profits, a bond is an ‘IOU’ from a company to an investor who loans it money

One of the least concerns a fund investor should have is that of a lack of choice – writes Tabitha James of DIY Investor Magazine

DIY Investor is dedicated to long term wealth creation; sister site Muckle wears its heart on its sleeve in its mission to educate and engage the next generation of investors – ‘mony a mickle maks a muckle’ is pretty much Savings and Investment 101 – writes Hannah Barnaby.

With all the caveats, P/E is likely to remain near the top of the list of commonly used valuation measures for shares in a wide range of, though not all sectors. It embraces complex considerations within a simple formula. It has an intuitive validity which is borne out by much more complex analysis, but is universally understood.’ writes Christian Leeming

Most people are broadly familiar with the concept of a ‘fund’ when it comes to investing but, there are a number of different fund types – writes Christian Leeming.

Investment trusts were once dubbed the ‘best kept secret in the City’; not any more it seems, as investors have embraced the fact that some trusts have consistently increased their dividends over decades, and have done so in the face of enormous headwinds – just one of which is the current COVID-19 pandemic.1 - writes Hannah Barnaby

Whatever style an investor adopts, the goal is always to identify and buy an asset in the hope and expectation that its price will increase; whilst the ambition may be simple enough, its achievement may be altogether trickier – how do you judge whether your investments are positioned to get the best possible return? – asks Christian Leeming.

Compound interest is the eighth wonder of the world. He, who understands it, earns it … he who doesn’t … pays it.’ Albert Einstein

Covid-19 has accelerated existing trends in commercial property – agile working, online shopping, digital transformation.

Now more than ever, investing in emerging markets requires experience and expertise for successful stock selection, but the potential long-term rewards are considerable

Whether budgeting for a trip of a lifetime, helping children get on the property ladder or planning for retirement, we all have financial milestones and objectives, and faced with the high cost of professional advice, an increasing number of people are deciding to take personal control of their finances; technology is the enabler – writes DIY Investor’s Tabitha James.

Compound interest is the eighth wonder of the world. He, who understands it, earns it … he who doesn’t … pays it.’ Albert Einstein

Whatever style an investor adopts, the goal is always to identify and buy an asset in the hope and expectation that its price will increase; whilst the ambition may be simple enough, its achievement may be altogether trickier – how do you judge whether your investments are positioned to get the best possible return? – asks Christian Leeming.

Investment trusts were once dubbed the ‘best kept secret in the City’; not any more it seems, as investors have embraced the fact that some trusts have consistently increased their dividends over decades, and have done so in the face of enormous headwinds – just one of which is the current COVID-19 pandemic.1 - writes Hannah Barnaby

With a small number of stocks driving global markets, we discuss how SIGIT can be used to aid and diversify returns…

Smaller investment trusts have been under pressure with demand reduced by consolidation in the wealth management industry and the increasing use of centralized buy lists by DFMs and advisers

The JPMorgan Japanese Investment Trust offers investors capital growth opportunities from a market often overlooked by UK investors.

Engaging with companies is core to our equity investment process. Of course, the last few months have prevented us from physically meeting with the management teams of the UK small-cap firms in our sector. However, thanks to technology and the removal of time-consuming travel, we have had more, not less, contact with key decision-makers.

Targeting UK companies outside the FTSE 100, The Mercantile Investment Trust has a long heritage of successfully providing capital growth – and income. What’s the strategy behind its success? At a time when uncertainty clouds the short-term equity market outlook, why should investors consider mid and small caps?

Website ‘Woodford Litigation’ announced that ‘Woodford investors are suing Link Fund Solutions for their failure to manage the Equity Income Fund prudently’ – writes Christian Leeming.

Most people are broadly familiar with the concept of a ‘fund’ when it comes to investing but, there are a number of different fund types – writes Christian Leeming.

Possibly stung into action by a growing sense of the planet’s fragility, investors poured record sums into sustainable investment funds that invest according to environmental, social and governance (ESG) principles during lockdown – writes Tabitha James

With all the caveats, P/E is likely to remain near the top of the list of commonly used valuation measures for shares in a wide range of, though not all sectors. It embraces complex considerations within a simple formula. It has an intuitive validity which is borne out by much more complex analysis, but is universally understood.’ writes Christian Leeming

Markets have staged a remarkable recovery from the savage falls in March

Schroder Income Growth (SCF) aims to generate real income growth from a portfolio of primarily UK companies

DIY Investor is dedicated to long term wealth creation; sister site Muckle wears its heart on its sleeve in its mission to educate and engage the next generation of investors – ‘mony a mickle maks a muckle’ is pretty much Savings and Investment 101 – writes Hannah Barnaby.

Core and satellite investing is a method of portfolio construction designed to minimise costs and volatility while providing an opportunity to outperform a broad stock market or portfolio of markets as a whole; it is why some of the largest and best resourced investment funds in the world (pension funds and sovereign wealth funds) have adopted this approach, but there is no reason why it should not be used by the DIY investor in managing their ISA or SIPP – writes Tabitha James

The FIRE movement is gathering momentum – those seeking to be Financially Independent, Retired Early and there has never been a better time to start planning for the lifestyle in retirement you want; starting early and investing for a long time gives you the best chance of achieving it.

The volatility of global markets has illustrated how ‘all-in-one’ investment vehicles can be beneficial for investors. We look at ATST, which can offer diversification without compromising growth…

DIY Investor is dedicated to long term wealth creation; sister site Muckle wears its heart on its sleeve in its mission to educate and engage the next generation of investors – ‘mony a mickle maks a muckle’ is pretty much Savings and Investment 101 – writes Hannah Barnaby.

One of the least concerns a fund investor should have is that of a lack of choice – writes Tabitha James of DIY Investor Magazine

One of the least concerns a fund investor should have is that of a lack of choice – writes Tabitha James of DIY Investor Magazine

This trust offers a blend of characteristics which might appeal to many investors...

Can our portfolio choices do the power of good to the environment and society as well as our personal wealth? Those practicing Socially Responsible Investing (SRI) believe so…writes Christian Leeming

For those new to investing, the sheer choice of investment options can be daunting, but it should be possible to construct a simple, well diversified investment portfolio...

Funds, traditionally referred to as mutual funds, are collective investments that pool investors’ money to buy and sell shares or other assets in a range of companies to maximise profits and reduce risks.

Portfolio construction gets less attention than picking stocks, but it can have a profound effect on the risk you are exposed to and the returns you achieve

Funds not only differ in the sectors or geographical territories they invest in, there are also different ways for them to be structured.

Funds pool the money of lots of investors to buy a portfolio of investments; the price of these assets fluctuates, as does the size of the fund as investors buy and sell shares.

Funds, traditionally referred to as mutual funds, are collective investments that pool investors’ money to buy and sell shares or other assets in a range of companies to maximise profits and reduce risks.

Selecting a fund or funds can seem overwhelming from the thousands to choose from, so here are some pointers to bear in mind.

A recent survey conducted by Schroders suggests that Brits are failing to make sufficient provision for retirement; there is a mismatch between the income people believe they need in retirement and the actual cost of living, which means those who are not yet retired expect living expenses to take up just 34% of their retirement income, whereas in actuality they account for 49%.

A recent survey conducted by Schroders suggests that Brits are failing to make sufficient provision for retirement. There is a mismatch between the income people believe they need in retirement and the actual cost of living, which means those who are not yet retired expect living expenses to take up just 34 per cent of their retirement income, whereas in actuality they account for 49 per cent.