How to research investment companies Annabel Brodie-Smith, Communications Director, AIC

Transcription

How to research investment companies Annabel Brodie-Smith, Communications Director, AIC
How to research investment
companies
Annabel Brodie-Smith, Communications Director, AIC
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Do you currently recommend
investment companies?
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Alien? Scary?
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Alien? Scary?
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Performance to end of August 2012
Duration
Average
investment
company
(3.5%
deduction for
charges)
Average unit
trust offer to
bid
1 year
3 year
5 year
10 years
18 years
21 years
98
127
105
244
327
533
103
122
113
192
277
431
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Gearing
• A way to magnify returns to shareholders
• AIC revising gearing data and descriptions
- changes to improve understanding of past, present and future
gearing
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Gearing Examples – End August
• Average gearing for investment company sector – 6%
• Most geared sector – Property Direct Europe – 188%
• Least geared sector – Infrastructure - holding cash 8% cash
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Charges
• Ongoing charges not TERs
• Performance fees also available on website
• Variety of charges according to type of sector and company
• Global Growth sector average - 0.84% inc perf fee
• Commodities & Natural resources – 1.58% inc perf fee
• Private Equity – 2.35% inc perf fee
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Discounts/Premiums
• Reflects supply and demand for sector/company
• Why is this company at a discount/premium?
• Discount volatility – addressed via discount control mechanism
• Average discount -9%
• Property Direct Europe -44%
• Infrastructure +8%
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Sustainability of Income
• Investment trusts can retain up to 15% of income each year
• Open-ended companies have to distribute all their income
• Allows investment companies to smooth dividends and pay them
when times are tough
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Dividend Heroes
Company
Sector
Consecutive years of
dividend increase
City of London
Investment Trust
UK Growth & Income
46 years
Bankers
Global Growth
45 years
Alliance Trust
Global Growth
44 years
Caledonia Investments
Global Growth
44 years
F&C Global Smaller
Companies
Global Growth
41 years
Foreign & Colonial
Global Growth
40 years
Brunner
Global Growth
40 years
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Investment Trusts/Unit Trusts run by the same manager
Investment Company
OEIC
Manager
Schroder UK Growth
Schroder UK Alpha Plus
Richard Buxton
Lowland Investment
Company
Henderson UK Equity
Income
James Henderson
Temple Bar Investment
Trust
Investec UK Special
Situations
Alastair Mundy
Edinburgh Investment Trust INVESCO Perpetual
Income
Neil Woodford
Standard Life UK Sm Cos
Standard Life UK Sm Cos
Harry Nimmo
Jupiter European Opps
Trust
Jupiter European Fund
Alex Darwell
BlackRock World Mining
Trust
BGF World Mining
Evy Hambro
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Edinburgh Investment Trust vs INVESCO Perpetual
Income
• Edinburgh
• INVESCO
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Information
• Adviser Centre – www.theaic.co.uk
• Training – online, seminars, bespoke
• Adviser newsletter - Spotlight
www.theaic.co.uk
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Alien? Scary?
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Alien? Scary?
© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.
Disclaimer
Any information contained in this presentation has been prepared for information purposes only. Whilst the AIC / AIC Information
Services Limited has taken all reasonable steps to verify such information, it does not accept responsibility for any errors or
omissions or for losses of any nature incurred by any person howsoever caused. The information contained in this presentation
does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in
investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment
decision. This presentation may not be printed, reproduced or further distributed to any other person or published, in whole or in
part, for any purpose. Please refer to http://theaic.co.uk/Important-information/ for further information relating to our disclaimer
policy.
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© Association of Investment Companies 2012. This information is not to be distributed to, or used in connection with work on behalf of, an
investment company which is not a member of the AIC, without the express permission of the AIC.