close

Вход

Забыли?

вход по аккаунту

?

2018-05-24 Shares Magazine

код для вставкиСкачать
STO CKS | FUNDS | I NVEST ME NT T RUSTS | P E NS I ONS AND SAVI N GS
SHARES
V O L 1 8 / I S S U E 2 0 / 2 4 M AY 2 0 1 8 / £ 4 . 4 9
ARTIFICIAL
INTELLIGENCE
OVER-HYPED
WE MAKE INVESTING EASIER
WHERE
TO INVEST
YOUR
SIPP CASH
WINDFALL
OR FUTURE
MEGATREND?
FOUR LINKS IN THE
GLOBAL FINANCIAL
MARKET CHAIN
HAVE WEAKENED:
WHICH IS NEXT?
RUMOURS OF
LIDL GOING ONLINE IS
BAD FOR TESCO AND
SAINSBURY’S
BACK IN BLACK: WHY BANKS ARE INVESTABLE ONCE MORE
EARN UP TO 12%
Supercharge your investments with Lendy,
the high income P2P property platform.
Join our property investment community for as little
as £1 and start earning from 7% to 12% pa.
Join today and claim your £50 new investor bonus
today.** Loyalty bonuses also available.
Your chance to experience
Lendy Cowes Week, with
VIP extras.**
For the second year running we are proud
to be sponsors of Lendy Cowes Week.
We are offering you and a guest the chance to
experience The Original British Sailing regatta
Lendy Cowes Week in style from 4th-11th Aug 2018.
The prize includes overnight accommodation,
£100 towards travel, access to our special VIP
lounge and a chance to get involved in the
action on the water.
For your chance to win this fantastic prize,
simply register with Lendy - The Property
Platform at www.lendy.co.uk.**
For more info call
0800 779 7706
or visit lendy.co.uk
Like all investments, your capital is at risk
The
AWARDS
2018
SHORTLISTED
*Our current investment returns range from 7-12% with the chance to earn additional loyalty bonuses up to 3% **Terms apply.
All loans made through the Lendy platform are secured on UK property; however, capital is at risk should a borrower default. Funds lent through a peer-to-peer website are not covered by the Financial Services Compensation
Scheme. Past performance is not a guarantee of future performance. Please obtain independent advice if you are in any doubt as to whether the Lendy platform is suitable for you or if you require tax advice. Please see our full
risk statement at https://lendy.co.uk/risk.
EDITOR’S VIEW
Watch out for companies
with dominant shareholders
...as they may take control of a company and leave minority shareholders
out in the cold
T
he perils of having dominant
shareholders have come to the
forefront once again with
various small cap companies on the
UK market. Minority shareholders
ŚĂǀĞĞīĞĐƟǀĞůLJďĞĞŶƐŚƵŶƚĞĚƚŽŽŶĞ
side and in one case not given a fair say
ŝŶŝŵƉŽƌƚĂŶƚŵĂƩĞƌƐǁŚŝĐŚŝƐƵŶũƵƐƚ͘
For example, several companies say
they will leave the stock market and
in doing so will leave investors owning
shares they cannot sell.
Another example has seen two shareholders
ĂĐĐŽƵŶƟŶŐĨŽƌϰϳйŽĨQuarto’s (QRT) stock
manage to get themselves and two other
ŝŶĚŝǀŝĚƵĂůƐĞůĞĐƚĞĚĂƐĚŝƌĞĐƚŽƌƐĂƚƚŚĞŬƐĞůůĞƌ͛Ɛ
recent AGM without having made a proposal in
ĂĚǀĂŶĐĞŽĨƚŚĞŵĞĞƟŶŐ͘
dŚĞLJƐŝĚĞͲƐƚĞƉƉĞĚƚŚĞŶŽƌŵĂůƌĞƋƵŝƐŝƟŽŶ
ƉƌŽĐĞƐƐďĞĐĂƵƐĞYƵĂƌƚŽŝƐƌĞŐŝƐƚĞƌĞĚĂƐĂĞůĂǁĂƌĞ
ĐŽŵƉĂŶLJĂŶĚŝƐƐƵďũĞĐƚƚŽĚŝīĞƌĞŶƚƌƵůĞƐƚŚĂŶ
h<ͲƌĞŐŝƐƚĞƌĞĚĮƌŵƐ͘
dŚĞƚǁŽƐŚĂƌĞŚŽůĚĞƌƐƐŝŵƉůLJŚĂĚƚŚĞƌĞƐŽůƵƟŽŶƐ
to appoint themselves and two other individuals
added to the schedule at the start of the AGM.
/ƚŵĞĂŶƚƚŚĂƚĂŶLJŽŶĞǁŚŽĐŽƵůĚŶ͛ƚĂƩĞŶĚƚŚĞ
ŵĞĞƟŶŐĂŶĚǁŚŽǁĂƐƌĞůŝĂŶƚŽŶĂƉƌŽdžLJǀŽƚĞďLJ
ƉŽƐƚĚŝĚŶ͛ƚŬŶŽǁĂďŽƵƚƚŚĞŵŽƟŽŶƚŽƌĞƉůĂĐĞ
ĨŽƵƌŶŽŶͲĞdžĞĐƵƟǀĞĚŝƌĞĐƚŽƌƐĂŶĚƐŽĐŽƵůĚŶ͛ƚ
ǀŽƚĞŽŶƚŚĞŵĂƩĞƌ͘tŚĂƚ͛ƐĂůƐŽŽĚĚŝƐƚŚĂƚƚŚĞ
ƚǁŽƐŚĂƌĞŚŽůĚĞƌƐŚŽůĚŝŶŐϰϳйŽĨƚŚĞƐƚŽĐŬǁĞƌĞ
ĂůůŽǁĞĚƚŽǀŽƚĞĨŽƌƚŚĞŝƌĞůĞĐƟŽŶ͘
MAKING A REAPPEARANCE
dŚĞĂĨŽƌĞŵĞŶƟŽŶĞĚƐŚĂƌĞŚŽůĚĞƌƐĂƌĞ>ĂƵƌĞŶĐĞ
KƌďĂĐŚǁŚŽǁĂƐŽƵƐƚĞĚĂƐYƵĂƌƚŽ͛ƐĐŚŝĞĨ
ĞdžĞĐƵƟǀĞŝŶϮϬϭϮďLJƚŚĞŶͲϮϵйƐŚĂƌĞŚŽůĚĞƌ
,ĂƌǁŽŽĚĂƉŝƚĂů͖ĂŶĚŚƵŬ<ŝŶ>ĂƵǁŚŽŝƐĂ
ďŝŐYƵĂƌƚŽĐƵƐƚŽŵĞƌ͘
&ŝŌĞĞŶLJĞĂƌƐĂŐŽKƌďĂĐŚĨŽƵŐŚƚĂďĂƩůĞǁŝƚŚ
ĂƐƐĞƚŵĂŶĂŐĞƌ:K,ĂŵďƌŽǁŚŝĐŚƉƵƚŝŶĂƚĞŶĚĞƌ
ŽīĞƌƚŽƚĂŬĞŝƚƐƐƚĂŬĞĨƌŽŵϮϲйƚŽϱϭй
ĂŌĞƌůŽƐŝŶŐĨĂŝƚŚǁŝƚŚŵĂŶĂŐĞŵĞŶƚ͘
YƵĂƌƚŽ͛ƐĞůĂǁĂƌĞĐŽŵƉĂŶLJƐƚĂƚƵƐ
ŵĞĂŶƚ:K,ĂŵďƌŽĚŝĚŶ͛ƚŚĂǀĞƚŽŵĂŬĞ
ĂĨƵůůƚĂŬĞŽǀĞƌďŝĚ͘
In a twist of irony given the latest
ĞǀĞŶƚƐ͕YƵĂƌƚŽĂƚƚŚĞƟŵĞƐĂŝĚƚŚĞ
ƚĞŶĚĞƌŽīĞƌǀŝŽůĂƚĞĚĨƵŶĚĂŵĞŶƚĂů
principles of the Takeover Code (which
ĚŽĞƐŶŽƚĂƉƉůLJƚŽYƵĂƌƚŽĂƐĂĞůĂǁĂƌĞ
ĐŽƌƉŽƌĂƟŽŶͿďLJ͚ĨĂŝůŝŶŐƚŽƚƌĞĂƚĂůů
ƐŚĂƌĞŚŽůĚĞƌƐĞƋƵĂůůLJ͛͘
Fund manager Paul Mumford of Cavendish Asset
Management is one of the annoyed shareholders
ǁŚŽŚĂƐĐŽŵĞĨŽƌǁĂƌĚƚŽĐŽŵƉůĂŝŶĂďŽƵƚƚŚĞ
ůĂƚĞƐƚĞǀĞŶƚƐ͘,ĞŝƐĂůƐŽĨƌƵƐƚƌĂƚĞĚďLJƚŚĞǁĂLJ
YƵĂƌƚŽůĂƐƚLJĞĂƌĨĂŝůĞĚƚŽƉƵƚĂƚĂŬĞŽǀĞƌĂƉƉƌŽĂĐŚ
to shareholder vote.
͚dŚŝƐƌĞƉƌĞƐĞŶƚƐĂŶĞŐƌĞŐŝŽƵƐĐĂƐĞŽĨŵŝŶŽƌŝƚLJ
ƐŚĂƌĞŚŽůĚĞƌŝŶƚĞƌĞƐƚƐďĞŝŶŐƐƚĞĂŵƌŽůůĞƌĞĚŽŶƚŚĞ
sly. A cynical person would look at this and call it a
ƚĂŬĞŽǀĞƌŽŶƚŚĞĐŚĞĂƉ͕ǁŝƚŚĂŶŝŶͲďƵŝůƚĐŽŶŇŝĐƚŽĨ
ŝŶƚĞƌĞƐƚĂƐƚŚĞĐŚĞƌƌLJŽŶƚŚĞĐĂŬĞ͕͛ƐĂLJƐDƵŵĨŽƌĚ͘
͚>ŽŽŬŝŶŐĂƚƚŚĞŶĞǁďŽĂƌĚŵĂŬĞƵƉ͕ŝƚƐĞĞŵƐ
ŝŶĞǀŝƚĂďůĞƚŚĂƚŵŝŶŽƌŝƚLJƐŚĂƌĞŚŽůĚĞƌƐǁŝůůŶŽǁĮŶĚ
their interests sidelined. On the other hand given
ƚŚĂƚƚŚĞĐŽŵƉĂŶLJ͛ƐƉĞƌĨŽƌŵĂŶĐĞŝƐůĞƐƐƚŚĂŶƐƚĞůůĂƌ͕
it is good to see some shareholders playing an
ĂĐƟǀĞƌŽůĞ͛͘
MORALLY WRONG
KŶĞĐŽƵůĚĂƌŐƵĞƚŚĂƚKƌďĂĐŚ͛ƐůĂƚĞƐƚŵŽǀĞǁĂƐ
ƚŚĞĨĂƐƚĞƐƚǁĂLJƚŽƌĞŐĂŝŶĂƐĞĂƚĂƚƚŚĞƚĂďůĞŽĨƚŚĞ
ďƵƐŝŶĞƐƐŚĞĐůĞĂƌůLJůŽǀĞƐ͕ŚĂǀŝŶŐƐƉĞŶƚϯϲLJĞĂƌƐŝŶ
ĐŚĂƌŐĞ͘ƵƚŵŽƌĂůůLJŝƚĚŽĞƐŶ͛ƚƐĞĞŵƌŝŐŚƚ͘/ƚĐŽŵĞƐ
across as self-serving and not in the spirit of good
corporate governance.
tŚŝůĞƚŚĞƌĞŝƐĐůĞĂƌůLJŵŽƌĞŽĨƚŚŝƐƐƚŽƌLJƚŽďĞ
ƚŽůĚ͕ŝƚĚŽĞƐŶ͛ƚĞdžĐƵƐĞƚŚĞƉŽŽƌŵĂŶŶĞƌŝŶŚŽǁ
ŵŝŶŽƌŝƚLJƐŚĂƌĞŚŽůĚĞƌƐŚĂǀĞďĞĞŶƚƌĞĂƚĞĚŶŽǁĂŶĚ
ŝŶƚŚĞƉĂƐƚ͘;Ϳ
24 May 2018 | SHARES |
3
Contents
USING THE
PDF VERSION?
CLICK ON PAGE
NUMBERS TO JUMP
TO THE RELEVANT
STORY
24 May 2018
EDITOR’S VIEW
03 Watch out for
companies
with dominant
shareholders
10
BIG NEWS
06 Rumours of Lidl
going online is
bad for Tesco and
Sainsbury’s
BIG NEWS
07 Entertainment One
and Bloomsbury
are scooping up
the cash from big
franchises
BIG NEWS
08 Shock management
departures could
pave way for KCOM
break-up
BIG NEWS
08 Shares in Brewin
Dolphin up by nearly
80% in two years
STORY IN NUMBERS
10 Tesla and other
stories in numbers
G R EAT ID EAS
12 Analysing drug
data could be very
lucrative for this
little-known business
G R EAT ID EAS
12
14 This investment
trust has been
reborn and is ready
to strike back
GREAT IDEAS UPDAT ES
16 We update on
Cineworld, SigmaRoc,
Future and Aviva
DISCLAIMER
IMPORTANT
Shares publishes information and ideas which are of interest to investors. It
does not provide advice in relation to investments or any other financial matters.
Comments published in Shares must not be relied upon by readers when they
make their investment decisions. Investors who require advice should consult a
properly qualified independent adviser. Shares, its staff and AJ Bell Media Limited
do not, under any circumstances, accept liability for losses suffered by readers as
a result of their investment decisions.
Members of staff of Shares may hold shares in companies mentioned in the
magazine. This could create a conflict of interests. Where such a conflict exists it
will be disclosed. Shares adheres to a strict code of conduct for reporters, as
set out below.
1. In keeping with the existing practice, reporters who intend to write about any
4
| SHARES | 24 May 2018
securities, derivatives or positions with spread betting organisations that they
have an interest in should first clear their writing with the editor. If the editor
agrees that the reporter can write about the interest, it should be disclosed to
readers at the end of the story. Holdings by third parties including families, trusts,
self-select pension funds, self select ISAs and PEPs and nominee accounts are
included in such interests.
2. Reporters will inform the editor on any occasion that they transact shares,
derivatives or spread betting positions. This will overcome situations when the
interests they are considering might conflict with reports by other writers in the
magazine. This notification should be confirmed by e-mail.
3. Reporters are required to hold a full personal interest register. The whereabouts
of this register should be revealed to the editor.
4. A reporter should not have made a transaction of shares, derivatives or spread
betting positions for seven working days before the publication of an article that
mentions such interest. Reporters who have an interest in a company they have
written about should not transact the shares within seven working days after the
on-sale date of the magazine.
Contents
18
MA I N FE ATURE
18 Artificial
Intelligence
FEAT URE
25 Where to invest your
SIPP cash windfall
INVESTMENT TRUSTS
28 Is a fund manager
lazy if they rarely
change their
portfolio?
FUND S
AE Q UI TAS
38 Four links in the
global financial
market chain have
weakened: which
is next?
33 Will absolute return
funds become
fashionable again?
MR M A RKE T
36 Back in black: why
banks are investable
once more
40
38
MONEY MAT T ER S
40 Why you should
avoid ‘lifestyle
inflation’
LARGER COMPANIES
43 Euromoney is
reinventing itself as a
data services group
SMALLER COMPANIES
44 LoopUp hopes to
enjoy network effect
boost with £61m
acquisition
IND EX
45 Index of companies
and funds in this issue
WHO WE ARE
DEPUTY
EDITOR:
NEWS
EDITOR:
Tom Sieber
@SharesMagTom
Steven Frazer
@SharesMagSteve
EDITOR:
Daniel
Coatsworth
@SharesMagDan
FUNDS AND
INVESTMENT TRUSTS
EDITOR:
REPORTER:
REPORTER:
CONTRIBUTORS
David Stevenson
@SharesMagDavid
Lisa-Marie Janes
@SharesMagLisaMJ
Emily Perryman
Tom Selby
James Crux
@SharesMagJames
MANAGING DIRECTOR
Mike Boydell
CONTACT US:
support@sharesmagazine.co.uk
PRODUCTION
Head of Design
Rebecca Bodi
Designer
Darren Rapley
ADVERTISING
Senior Sales Executive
Nick Frankland
020 7378 4592
nick.frankland@sharesmagazine.co.uk
Shares magazine is published weekly every Thursday (50 times per year) by AJ Bell Media Limited,
49 Southwark Bridge Road, London, SE1 9HH. Company Registration No: 3733852.
All Shares material is copyright. Reproduction in whole or part is not permitted without written
permission from the editor.
BROKER RATINGS EXPLAINED:
We use traffic light symbols in the magazine to illustrate
broker views on stocks.
Green means buy, Orange means hold, Red means sell.
The numbers refer to how many different brokers have
that rating.
Eg: 4 2 1 means four brokers have buy ratings,
two brokers have hold ratings and one broker has a sell
rating.
The traffic light system gives an illustration of market views
but isn’t always a fully comprehensive list of ratings as some
banks/stockbrokers don’t publicly release this information.
24 May 2018 | SHARES |
5
BIG NEWS
Rumours of Lidl going online is
bad for Tesco and Sainsbury’s
Supermarkets need to prepare themselves for the latest competitive threat
L
idl may be planning to enter the online
grocery delivery market in a fresh assault
against the UK’s largest supermarket chains,
according to media reports. The German
discounter has registered the name ‘Lidl Digital
>ŽŐŝƐƟĐƐ͛ĂƚŽŵƉĂŶŝĞƐ,ŽƵƐĞĂŶĚĐŽƵůĚďĞ
ƚĂƌŐĞƟŶŐƚŚĞŐƌŽĐĞƌLJĚĞůŝǀĞƌŝĞƐĂƌĞŶĂ͘
Because they operate a low cost model,
discount companies such as Lidl have hitherto
avoided e-commerce, preferring to invest in
keeping prices low in store rather than incurring
the added costs of picking, packing and delivering
products to customers.
MARKET SHARE
TESCO
27.6%
OTHER
27.6%
LIDL
5.4%
SAINSBURYS
15.9%
ALDI
7.3%
ASDA
15.5%
Source: Kantar Worldpanel (1 May), covering the 12 weeks to 22 April
6
| SHARES | 24 May 2018
,ŽǁĞǀĞƌ͕ƚŚĞƌŝƐĞŝŶƚŚŝƌĚƉĂƌƚLJĚĞůŝǀĞƌLJƐĞƌǀŝĐĞƐ
is opening doors for more supermarkets, enabling
them to cater to growing demand for online
grocery without the need for heavy investment
in systems and infrastructure.
dŚŝƐŝƐƚŚĞĮƌƐƚƟŵĞ>ŝĚůŚĂƐƐŝŐŶĂůůĞĚĂŶŝŶƚĞƌĞƐƚ
in moving online and the move would represent
ĂƐŝŐŶŝĮĐĂŶƚŶĞǁƚŚƌĞĂƚƚŽƚŚĞŐƌŽǁŝŶŐŽŶůŝŶĞ
ŽƉĞƌĂƟŽŶƐŽĨTesco (TSCO) and J Sainsbury (SBRY).
ZĞƚĂŝůŝŶĚƵƐƚƌLJǁĂƚĐŚĞƌƐǁĞƌĞůĞŌƐƚƵŶŶĞĚďLJƚŚĞ
news in April that J Sainsbury and Asda wanted to
combine forces in a supermarkets super-merger.
Against a backdrop of the relentless rise of online
shopping and Amazon, and the threat from Lidl
and Aldi, J Sainsbury plans to acquire Asda from
Walmart in a deal that will see the US retail
ďĞŚĞŵŽƚŚďĞĐŽŵĞƚŚĞĞŶůĂƌŐĞĚĞŶƟƚLJ͛ƐďŝŐŐĞƐƚ
shareholder with a 42% stake.
dŚĞůĂƚĞƐƚŐƌŽĐĞƌLJŵĂƌŬĞƚƐŚĂƌĞĮŐƵƌĞƐĨƌŽŵ
Kantar Worldpanel (1 May), covering the 12 weeks
to 22 April, showed disruptors Aldi and Lidl growing
ƚŚĞŝƌŵĂƌŬĞƚƐŚĂƌĞƐƚŽϳ͘ϯйĂŶĚϱ͘ϰйƌĞƐƉĞĐƟǀĞůLJ͘
The data revealed market shares of 15.9% and
ϭϱ͘ϱйĨŽƌ:^ĂŝŶƐďƵƌLJĂŶĚƐĚĂƌĞƐƉĞĐƟǀĞůLJ͕ďŽƚŚ
down year-on-year, while Tesco maintained its
market leadership at 27.6%.
In the sector’s other major development, shares
in online grocer and e-commerce technology
licensor Ocado (OCDO)ŚĂǀĞƐŽĂƌĞĚĂŌĞƌƐĞĐƵƌŝŶŐ
a partnership deal with US grocer Kroger, giving it
a foothold in the vast American groceries market.
Following on from similar deals to provide
ƚŚĞKĐĂĚŽ^ŵĂƌƚWůĂƞŽƌŵƚŽĂŶĂĚĂ͛Ɛ^ŽďĞLJ͛Ɛ͕
&ƌĂŶĐĞ͛Ɛ'ƌŽƵƉĞĂƐŝŶŽĂŶĚ^ǁĞĚĞŶ͛Ɛ/͕KĐĂĚŽ
will license out its technology for Kroger’s exclusive
use in the US, where it is a market leader with sales
ŽĨΨϭϮϮďŶŝŶĮƐĐĂůϮϬϭϳ͘
Ocado, which powers Morrison’s (MRW) online
delivery service in the UK, believes Kroger is the
ĐŽŵƉĂŶLJďĞƐƚƉŽƐŝƟŽŶĞĚƚŽǁŝŶŝŶh^ŐƌŽĐĞƌLJĂŶĚ
ŚĂǀŝŶŐŝŶŬĞĚƚŚŝƐĚĞĂů͕ŝƚǁŝůůŶŽǁĐĂůůŽīƚĂůŬƐǁŝƚŚ
ŽƚŚĞƌh^ͲďĂƐĞĚƌĞƚĂŝůĞƌƐ͘;:Ϳ
BIG NEWS
NEWS
BIG
Entertainment One and
Bloomsbury are scooping up
the cash from big franchises
The ongoing appeal of Peppa Pig, Harry Potter and other big titles keeps the
income flowing for two media groups
T
ŚĞďĞŶĞĮƚƐŽĨŚĂǀŝŶŐƐƵĐĐĞƐƐĨƵůĨƌĂŶĐŚŝƐĞƐ
are made crystal clear in the latest results
from Entertainment One (ETO) and
Bloomsbury Publishing (BMY).
Both companies are riding high thanks to
ŽŶŐŽŝŶŐƐĂůĞƐĨƌŽŵĐĞƌƚĂŝŶƟƚůĞƐǁŚŝĐŚŚĂǀĞƚŚĞ
ŚĂůůŵĂƌŬƐŽĨďĞŝŶŐĞǀĞƌŐƌĞĞŶďƌĂŶĚƐ͕ƉŽƚĞŶƟĂůůLJ
ŐŝǀŝŶŐƚŚĞŵůŽŶŐĞǀŝƚLJĂƐŶĞǁŐĞŶĞƌĂƟŽŶƐĚŝƐĐŽǀĞƌ
their appeal in years to come.
Peppa Pig generated $1.3bn in retail sales in the
LJĞĂƌƚŽϯϭDĂƌĐŚϮϬϭϴ͕ƉƌŽǀŝĚŝŶŐάϴϰ͘ϳŵƌĞǀĞŶƵĞ
to majority brand owner Entertainment One as
its cut from merchandise agreements. It makes
ĂĚĚŝƟŽŶĂůůŝĐĞŶƐŝŶŐŵŽŶĞLJĨƌŽŵdsĂŶĚĚŝŐŝƚĂů
ƉůĂƞŽƌŵďƌŽĂĚĐĂƐƟŶŐĂůƚŚŽƵŐŚƚŚĞĞdžĂĐƚĂŵŽƵŶƚ
isn’t disclosed as the income is lumped in with
Entertainment One’s overall Family division.
ŚŝĞĨĞdžĞĐƵƟǀĞĂƌƌĞŶdŚƌŽŽƉƐĂLJƐPeppa Pig
ŝƐƐƟůůŐƌŽǁŝŶŐŝŶďŽƚŚĞŵĞƌŐŝŶŐĂŶĚŵĂƚƵƌĞ
markets and that there is much further growth
to come. Broadening the opportunity for future
income will be more immersive experiences such
as new Peppa Pig theme parks and live shows.
Bloomsbury says sales of its ,ĂƌƌLJWŽƩĞƌ series
ŐƌĞǁďLJϯϭйŝŶƚŚĞLJĞĂƌƚŽϮϴ&ĞďƌƵĂƌLJϮϬϭϴʹĂ
remarkable feat given that the franchise launched
21 years ago. It says ‘every year these classics
ƌĞĂĐŚĂŶĞǁŐĞŶĞƌĂƟŽŶŽĨƌĞĂĚĞƌƐ͛͘dŚĞƉƵďůŝƐŚĞƌ
ĐŽŶƟŶƵĞƐƚŽĮŶĚŶĞǁǁĂLJƐƚŽŵŽŶĞƟƐĞƚŚĞǁŝnjĂƌĚ
ƐƚŽƌLJŝŶĐůƵĚŝŶŐŝůůƵƐƚƌĂƚĞĚĞĚŝƟŽŶƐ͘
Entertainment One isn’t solely reliant on Peppa
PigĂƐŝƚďŽĂƐƚƐŵƵůƟƉůĞĨƌĂŶĐŚŝƐĞƐŝŶŝƚƐƉŽƌƞŽůŝŽ͘
For example, PJ Masks is proving to be another
big hit and achieved $1bn retail sales in the past
ĮŶĂŶĐŝĂůLJĞĂƌ͕ƌĞƐƵůƟŶŐŝŶάϰϴ͘ϴŵƌĞǀĞŶƵĞĨŽƌ
Entertainment One which shares ownership of the
ďƌĂŶĚǁŝƚŚŝƐŶĞLJĂŶĚŽƚŚĞƌƵŶĚŝƐĐůŽƐĞĚƉĂƌƟĞƐ͘
džƉůŽŝƟŶŐƐƵĐĐĞƐƐĨƵůĨƌĂŶĐŚŝƐĞƐŝƐĂůƐŽĂŬĞLJƉĂƌƚ
ŽĨŶƚĞƌƚĂŝŶŵĞŶƚKŶĞ͛ƐdsďƵƐŝŶĞƐƐǁŚĞƌĞŝƚŽǁŶƐ
ƟƚůĞƐƐƵĐŚĂƐThe Walking Dead and Ray Donovan.
Throop says the company likes to focus on popular
shows and to keep making more of them.
It also makes sure ongoing success doesn’t come
at a cost to the business, such as actors and crew
commanding higher salaries as shows increase
in popularity. ‘Some of our deals have ratchet
agreements whereby the broadcasters pay more
for each subsequent series,’ explains Throop.
dŚĞĂĐƋƵŝƐŝƟŽŶŝŶ:ĂŶƵĂƌLJŽĨƚŚĞƌĞŵĂŝŶŝŶŐ
ϰϵйƐƚĂŬĞŝŶdŚĞDĂƌŬ'ŽƌĚŽŶŽŵƉĂŶLJŝƚĚŝĚŶ͛ƚ
already own means Entertainment One now boasts
popular medical drama Grey’s Anatomy in its
ƉŽƌƞŽůŝŽ͘dŚĞƚĞůĞǀŝƐŝŽŶƐŚŽǁŚĂƐďĞĞŶƌĞŶĞǁĞĚ
ĨŽƌŝƚƐĮŌĞĞŶƚŚƐĞĂƐŽŶ͕ŵĂŬŝŶŐŝƚƚŚĞůŽŶŐĞƐƚ
ƌƵŶŶŝŶŐƐĐƌŝƉƚĞĚƉƌŝŵĞͲƟŵĞƐŚŽǁĐƵƌƌĞŶƚůLJ
ĂŝƌŝŶŐŽŶƚŚĞŶĞƚǁŽƌŬŝŶƚŚĞh^͘
Entertainment One’s content library is
ĐƵƌƌĞŶƚůLJǀĂůƵĞĚĂƚΨϭ͘ϳďŶ͕ŚŽǁĞǀĞƌƚŚĂƚĮŐƵƌĞ
ŝƐĐŽŶƐŝĚĞƌĂďůLJŽƵƚŽĨĚĂƚĞŐŝǀĞŶƚŚĞǀĂůƵĂƟŽŶ
ǁĂƐĚŽŶĞŝŶDĂƌĐŚϮϬϭϳĂŶĚŝƚŚĂƐƉƌŽĚƵĐĞĚĂŶĚ
acquired a considerable amount of content in the
subsequent period.
ŶĞǁůŝďƌĂƌLJǀĂůƵĂƟŽŶǁŝůůďĞƉƵďůŝƐŚĞĚĂůŽŶŐƐŝĚĞ
ƚŚĞĐŽŵƉĂŶLJ͛ƐŚĂůĨLJĞĂƌƌĞƐƵůƚƐŝŶEŽǀĞŵďĞƌ͘;Ϳ
24 May 2018 | SHARES |
7
BIG NEWS
Shock management
departures could pave
way for KCOM break-up
Years of poor financials and stagnant share price spark rethink
T
he shock departure of senior management at
KCOM (KCOM) has started tongues wagging
that a break-up of the group is on the cards.
ŚŝĞĨĮŶĂŶĐĞŽĸĐĞƌ:ĂŶĞŝŬŵĂŶƌĞƐŝŐŶĞĚŽŶ
ϭϳDĂLJ͕ŚŽƚŽŶƚŚĞŚĞĞůƐŽĨĐŚŝĞĨĞdžĞĐƵƟǀĞŝůů
,ĂůďĞƌƚ͛ƐĚĞĐŝƐŝŽŶƚŽƐƚĂŶĚĚŽǁŶĂŌĞƌĂŶϭϭͲLJĞĂƌ
ƌƵŶǁŝƚŚƚŚĞĐŽŵƉĂŶLJ͘ŽƚŚĂƌĞƐƚĂLJŝŶŐŽŶƵŶƟů
replacements are found.
These announcements caught the market by
ƐƵƌƉƌŝƐĞ͕ĐŽŵŝŶŐũƵƐƚǁĞĞŬƐĂŌĞƌ<KD͛ƐĐĂƉŝƚĂů
ŵĂƌŬĞƚƐĞĚƵĐĂƟŽŶĚĂLJĨŽƌĂŶĂůLJƐƚƐĂŶĚŝŶǀĞƐƚŽƌƐ͘
It is believed that no hint of the impending
departures was given at the event on 1 February.
^ƉĞĐƵůĂƟŽŶŝƐŶŽǁĐŝƌĐůŝŶŐƚŚĂƚĂŵĂŶĂŐĞŵĞŶƚ
overhaul has taken place designed to arrest years
ŽĨƉŽŽƌĮŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞĂŶĚĂƐŚĂƌĞƉƌŝĐĞ
ƚŚĂƚŚĂƐƐƚĂŐŶĂƚĞĚĨŽƌĮǀĞLJĞĂƌƐ͘
<KDŝƐĂŵŝƐŚŵĂƐŚŽĨĐŽŵŵƵŶŝĐĂƟŽŶŶĞƚǁŽƌŬ͕
ŝŶĨƌĂƐƚƌƵĐƚƵƌĞƐĞƌǀŝĐĞĂŶĚĞŶƚĞƌƉƌŝƐĞƐŽŌǁĂƌĞ
ďƵƐŝŶĞƐƐĞƐ͘/ƚŝƐďĞƐƚͲŬŶŽǁŶĨŽƌƌƵŶŶŝŶŐƚŚĞ,Ƶůů
ĂŶĚĂƐƚzŽƌŬƐŚŝƌĞĐŽŵŵƵŶŝĐĂƟŽŶƐŶĞƚǁŽƌŬƚŚĂƚ
provides calls and broadband internet to around
ϮϬϬ͕ϬϬϬůŽĐĂůƌĞƐŝĚĞŶƚƐĂŶĚďƵƐŝŶĞƐƐĞƐ͘
This part of the business provides the meat of
<KD͛ƐƉƌŽĮƚĂŶĚĐĂƐŚŇŽǁ͘dƌĂŶƐŝƟŽŶŝŶŐŵŽƌĞ
ĐƵƐƚŽŵĞƌƐƚŽŝƚƐĮďƌĞͲƚŽͲƚŚĞͲƉƌĞŵŝƐĞƐŶĞƚǁŽƌŬĐŽƵůĚ
drive incremental price increases if customers up
ƚŚĞŝƌďƌŽĂĚďĂŶĚĚĂƚĂƵƐĂŐĞ͕ƉŽƚĞŶƟĂůůLJĐƌĞĂƟŶŐĐŽƐƚ
ƐĂǀŝŶŐƐďLJƐǁŝƚĐŚŝŶŐŽīƚŚĞĐŽƉƉĞƌĐŽŶŶĞĐƟŽŶƐ͘
&ŽƌLJĞĂƌƐ<KDŚĂƐƌĞƚĂŝŶĞĚƚŚĞĨĂŝƚŚŽĨŝŶĐŽŵĞ
ŝŶǀĞƐƚŽƌƐƚŚĂŶŬƐƚŽƚŚĞƌĞůŝĂďůĞĐĂƐŚŇŽǁƐĨƌŽŵ
ŝƚƐ,ƵůůĂŶĚĂƐƚzŽƌŬƐŚŝƌĞŶĞƚǁŽƌŬƉƌŽǀŝĚŝŶŐƚŚĞ
ďĂĐŬŝŶŐĨŽƌĂƩƌĂĐƟǀĞĚŝǀŝĚĞŶĚƐĞǀĞŶŝŶƚŚĞĨĂĐĞŽĨ
pension scheme funding requirements.
But dividend growth is coming under increasing
ƚŚƌĞĂƚĂŵŝĚĂƩĞŵƉƚƐƚŽŐƌŽǁŝƚƐĞŶƚĞƌƉƌŝƐĞĂŶĚ
ƐĞƌǀŝĐĞďƵƐŝŶĞƐƐĞƐ͘KŋŽĂĚŝŶŐƚŚŽƐĞƉĂƌƚƐƚŽ
ĐŽŶĐĞŶƚƌĂƚĞŽŶŝƚƐ,ƵůůĂŶĚĂƐƚzŽƌŬƐŚŝƌĞŶĞƚǁŽƌŬ
ĐŽƵůĚƚŚĞƌĞĨŽƌĞŵĂŬĞƐĞŶƐĞ͕ƉŽƚĞŶƟĂůůLJĞĂƐŝŶŐĐĂƐŚ
pressures and releasing value for shareholders. (SF)
Shares in Brewin Dolphin up by nearly 80%
in two years
The wealth manager is expected to keep growing earnings at an impressive rate
t>d,DE'Z Brewin
Dolphin (BRW) is forecast by
analysts to increase pre-tax
ƉƌŽĮƚďLJŶĞĂƌůLJϭϮйƚŚŝƐLJĞĂƌ
ƚŽάϳϴ͘ϭŵĂŶĚďLJĂĨƵƌƚŚĞƌ
ϭϯйŝŶϮϬϭϵƚŽάϴϴ͘Ϯŵ͘
The company is on a roll,
judging by its latest half year
results which showed net new
ŝŶŇŽǁƐŝŶĚŝƐĐƌĞƟŽŶĂƌLJĨƵŶĚƐ
8
| SHARES | 24 May 2018
under management growing at
an annualised rate of 7.7%.
dŚĞάϭďŶǁĞĂůƚŚŵĂŶĂŐĞƌ
ŝƐďƵƐLJĐŽŶƐŽůŝĚĂƟŶŐĂŚŝŐŚůLJ
fragmented market having
ďŽƵŐŚƚƚŚĞĮŶĂŶĐŝĂůƉůĂŶŶŝŶŐ
and investment assets of
ƵŶĚĞĞͲďĂƐĞĚůĂƌŬdŚŽŵƐŽŶ
MortgageFinders earlier
this week.
dŚĞŵŽǀĞǁŝůůĂĚĚϭϱϬ
new clients to Brewin Dophin
and is part of the company’s
ĂŝŵƚŽďƌŽĂĚĞŶŝƚƐĮŶĂŶĐŝĂů
planning and investment
management arm.
Shares in the business have
been rallying since summer
ϮϬϭϲ͕ƌŝƐŝŶŐďLJŶĞĂƌůLJϴϬй
ƚŽϯϴϲƉ͘;^Ϳ
You invest
Invest from £25 a month in a low-cost DIY pension
You choose
Choose from a wide range of investment options
You benefit
Low-cost dealing from as little as £1.50
Open an account today
youinvest.co.uk
Low-cost SIPPs, ISAs, funds and shares
We don’t offer advice about the suitability of our products or any investments held
within them, if you require financial advice you should consult a suitably qualified
financial adviser. Tax treatment depends on your individual circumstances and rules
may change. The value of investments can go down as well as up and you may get
back less than you originally invested.
AJ Bell Management Limited, AJ Bell Securities Limited and AJ Bell Asset Management Limited are authorised and regulated by the Financial Conduct Authority.
All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE
STORY IN NUMBERS
TESLA MARGIN CRITICISM IS WRONG,
SAYS INVESTMENT BANK
TESLA HAS ASŵĂŶLJĐƌŝƟĐƐ
ĂƐŝƚĚŽĞƐĨĂŶƐĂŶĚŵĂŶLJ
ĐŽŵŵĞŶƚĂƚŽƌƐŚĂǀĞďĞĞŶ
ƋƵŝĐŬƚŽƐŚŽŽƚĚŽǁŶƚŚĞ
ĐŽŵƉĂŶLJ͕ƐĂLJŝŶŐŝƚŝƐďƵƌŶŝŶŐ
ƚŚƌŽƵŐŚĐĂƐŚĂŶĚŚĂƐĂďŽƐƐŝŶ
ůŽŶDƵƐŬǁŚŽŝƐŶ͛ƚďĞŚĂǀŝŶŐ
ŝŶƚŚĞŵĂŶŶĞƌĂƉƉƌŽƉƌŝĂƚĞƚŽ
ďĞŝŶŐƚŚĞĐŚŝĞĨĞdžĞĐƵƟǀĞŽĨĂ
ƋƵŽƚĞĚďƵƐŝŶĞƐƐ͘
ƌŝůůŝŶŐĚŽǁŶŝŶƚŽŵŽƌĞ
ƐƉĞĐŝĮĐƐ͕ŵĂŶLJĐŽŵŵĞŶƚĂƚŽƌƐ
ƐĂLJdĞƐůĂǁŽŶ͛ƚŵĂŬĞĂƐ
ŵƵĐŚŵŽŶĞLJĂƐƚŚĞĐŽŵƉĂŶLJ
ƚŚŝŶŬƐŝƚǁŝůů͘/ŶƉĂƌƟĐƵůĂƌ͕
ĐƌŝƟĐƐƐĂLJdĞƐůĂǁŽŶ͛ƚŵĂŬĞ
ϮϱйŐƌŽƐƐŵĂƌŐŝŶƐŽŶŝƚƐ
DŽĚĞůϯǀĞŚŝĐůĞ͘
,ĂǀŝŶŐƵŶĚĞƌƚĂŬĞŶĚĞƚĂŝůĞĚ
ĂŶĂůLJƐŝƐ͕ŝŶǀĞƐƚŵĞŶƚďĂŶŬ
ĞƌĞŶďĞƌŐƐĂLJƐƚŚŝƐĐƌŝƟĐŝƐŵ
ŝƐǁƌŽŶŐĂŶĚƚŚĂƚƚŚĞŵĂƌŐŝŶ
ƚĂƌŐĞƚŝƐ͚ƌĞĂůŝƚLJĂŶĚŶŽƚĂŚŽƉĞ͛͘
͚^ƵďƐƚĂŶƟĂůŐĂŝŶƐĨƌŽŵ
ůŽǁĞƌůĂďŽƵƌĐŽŶƚĞŶƚ͕ĂƐǁĞůů
ĂƐĐĂƉŝƚĂůĂŶĚŵĂƚĞƌŝĂůƵƐĞ
ĞĸĐŝĞŶĐŝĞƐ͕ƐŚŽƵůĚĂůůŽǁ
dĞƐůĂƚŽĐŽŵĨŽƌƚĂďůLJĂĐŚŝĞǀĞĂ
ŵĂƌŐŝŶĂďŽǀĞϮϱйƚŚƌŽƵŐŚŽƵƚ
ƚŚĞƉƌŽĚƵĐƚĐLJĐůĞ͕͛ŝƚƐĂLJƐ͘
25%
WEBIS NOW UP MORE THAN
580% ON US GAMBLING
SECTOR HOPE
5
8
0
d,WKdEd/>ŽƉĞŶŝŶŐƵƉŽĨƚŚĞh^
ƐƉŽƌƚƐďĞƫŶŐŝŶĚƵƐƚƌLJŚĂƐďƌĞĂƚŚĞĚ
ŶĞǁůŝĨĞŝŶƚŽŵŝĐƌŽͲĐĂƉŐĂŵďůŝŶŐ
ĐŽŵƉĂŶLJWebis (WEB:AIM) ĂŶĚŵĂĚĞ
ŝƚƐƐŚĂƌĞƐƚŚĞƐĞĐŽŶĚďĞƐƚƉĞƌĨŽƌŵŝŶŐ
ƐƚŽĐŬLJĞĂƌͲƚŽͲĚĂƚĞǁŝƚŚĂϱϴϰйŐĂŝŶ͘
tĞďŝƐĐŽŶĚƵĐƚƐůŝǀĞƉĂƌŝͲŵƵƚƵĞů
ƌĂĐŝŶŐĂŶĚŽŶůŝŶĞǁĂŐĞƌŝŶŐƐĞƌǀŝĐĞƐ
ƚŚƌŽƵŐŚŝƚƐtĂƚĐŚĂŶĚtĂŐĞƌďƌĂŶĚĂŶĚ
ŚĂƐĂůŝĐĞŶĐĞƚŽĂĐĐĞƉƚǁĂŐĞƌƐĨƌŽŵ
ƌĞƐŝĚĞŶƚƐŝŶǀĂƌŝŽƵƐh^ƐƚĂƚĞƐ͘
/ƚŝƐŶŽǁƐĞĞŬŝŶŐƉĂƌƚŶĞƌƐŚŝƉƐǁŝƚŚ
ŐĂŵŝŶŐƐŽŌǁĂƌĞĂŶĚŽƚŚĞƌŽƉĞƌĂƚŽƌƐ
ŝŶƚŚĞŚŽƉĞƚŚĂƚŝŶĚŝǀŝĚƵĂůƐƚĂƚĞ
ůĞŐŝƐůĂƟŽŶĨŽƌƐƉŽƌƚƐďĞƫŶŐǁŝůů
ďĞĂƉƉƌŽǀĞĚ͘
10
| SHARES | 24 May 2018
NINE GROWTH UPGRADE
AND COUNTING AT
BLUE PRISM
EKd,ZdZ/E'ƵƉĚĂƚĞĨƌŽŵ
Blue Prism (PRSM:AIM)ĂŶĚ
ĂŶŽƚŚĞƌŐƌŽǁƚŚŐƵŝĚĂŶĐĞƵƉŐƌĂĚĞ͘
dŚĂƚ͛ƐƚŚĞŶŝŶƚŚŝŶůŝƩůĞŵŽƌĞƚŚĂŶ
ƚǁŽLJĞĂƌƐƐŝŶĐĞŝƚƐ/WKďƌŽƵŐŚƚƚŚĞ
ƐƚŽĐŬƚŽ/DĂƚϳϴƉƉĞƌƐŚĂƌĞ͘dŚĞ
ƐŚĂƌĞƐŶŽǁĐŚĂŶŐĞŚĂŶĚƐĂƚάϭϲ͘ϯϮ͘
͚ůƵĞWƌŝƐŵũƵƐƚĐĂŶ͛ƚƐƚŽƉŐƌŽǁŝŶŐ͛
ŝƐŚŽǁŽŶĞƐŽŌǁĂƌĞŝŶĚƵƐƚƌLJĂŶĂůLJƐƚƐƵŵƐƵƉ
ƚŚĞƐŝƚƵĂƟŽŶ͘
dŚĞƌŽďŽƟĐƉƌŽĐĞƐƐĂƵƚŽŵĂƟŽŶƐŽůƵƟŽŶƐ͚ƉŽƐƚĞƌ
ĐŚŝůĚ͛ŝƐƐĞĞŝŶŐŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƟĞƐĞŵĞƌŐĞĂƚƐƵĐŚĂ
ƉĂĐĞƚŚĂƚĨŽƌĞĐĂƐƚĞƌƐŚĂǀĞƐƚƌƵŐŐůĞĚƚŽŬĞĞƉƵƉ͘
/ŶǀĞƐƚĞĐ͕ůƵĞWƌŝƐŵ͛ƐŽǁŶďƌŽŬĞƌ͕ŚĂƐŚĂĚƚŽƌŝƉƵƉ
ĨŽƌĞĐĂƐƚƐĂŶĚƐƚĂƌƚĂŐĂŝŶƐŽŵĂŶLJƟŵĞƐƚŚĂƚŝŶǀĞƐƚŽƌƐ
ŵŝŐŚƚǁŽŶĚĞƌǁŚĞƚŚĞƌƐŚĂƌĞƐŝŶdŝƉƉĞdžŵŝŐŚƚŚĂǀĞ
ďĞĞŶĂƐŝŵŝůĂƌůLJŐŽŽĚŝŶǀĞƐƚŵĞŶƚ͘
&ŽůůŽǁŝŶŐůƵĞWƌŝƐŵ͛ƐůĂƚĞƐƚƵƉĚĂƚĞŽŶϭϲDĂLJ
/ŶǀĞƐƚĞĐƌĂŝƐĞĚŝƚƐϮϬϭϴĂŶĚϮϬϭϵƌĞǀĞŶƵĞĨŽƌĞĐĂƐƚƐ
ďLJϭϭйĂŶĚϭϳйƌĞƐƉĞĐƟǀĞůLJ͘dŚĂƚŝŵƉůŝĞƐƌĞǀĞŶƵĞǁŝůů
ŵŽƌĞƚŚĂŶĚŽƵďůĞƚŚŝƐLJĞĂƌƚŽάϱϬŵ͕ĨƌŽŵůĂƐƚLJĞĂƌ͛Ɛ
άϮϰ͘ϱŵ͘ƐƟŵĂƚĞƐĨŽƌϮϬϭϴƉƵďůŝƐŚĞĚŝŶ:ĂŶƵĂƌLJϮϬϭϳ
ǁĞƌĞůŽŽŬŝŶŐĨŽƌƌĞǀĞŶƵĞŽĨάϭϳ͘ϯŵ͕ǁŚŝĐŚƉƵƚƐƚŚĞ
ĐŽŵƉĂŶLJ͛ƐĨŽƌĞĐĂƐƚͲďƵƐƟŶŐƉƌŽŐƌĞƐƐŝŶƚŽƉĞƌƐƉĞĐƟǀĞ͘
9
Produced by
RETIREMENT
money show
13 June 2018
12:30 - 17:30
AT
ARE YOU RETIREMENT
READY?
AMERICA
SQUARE,
LONDON
EC3N 2LB
Come to the Retirement Money Show to find out more
about retirement planning.
All attendees receive a goody bag and will be
entered into free prize draws.
It’s no fun getting old when you’re worried about running out
of money, so do you have a financial plan for the possibility
of living to be 100? Did you know that the current average
retirement age is 64 years old and the average life expectancy is
now 81 years old? To put this into perspective you might have to
plan your retirement pot to last 17 years.
Come along to the Retirement Money Show, the London-based
afternoon event run by Shares and AJ Bell Media which takes
place on 13 June 2018 and features expert pension and financial
speakers who will help investors better understand pensions
and savings.
Register for free today and receive your Retirement Money
Show goody bag when you arrive!
Discover more about the most important retirement issues
and how best to manage your hard-earned money. The show
is suitable for people still in employment and wanting to
better understand financial planning, as well as those
already in retirement looking to get the most from their pension
and other assets.
Our speakers will be covering topics that are relevant to both
those already in retirement and those who are still in work.
Knowing how to manage your pension pot – either in
preparation for later life or during retirement – is one of the big
challenges facing millions of people today and a central theme
to the free-to-attend Retirement Money Show. It is one of a
number of topics that we will discuss during the afternoon, so
come along to the event armed with questions as there will be a
wide range of people happy to talk to you.
You will have the opportunity to ask questions to most of the
speakers and to interact with specialists in savings, income,
funds, ISAs and pensions/SIPPs on the exhibition stands.
To find out more and register
REGISTER
NOW
www.retirementmoneyshow.com
corinne.bailey@sharesmagazine.co.uk
020 7378 4404
Sponsors and
featured companies
GREAT IDEAS
Analysing drug data could
be very lucrative for this
little-known business
Profits from small cap stock Ergomed are forecast to soar over the next two years
A
company which provides
important services
ƚŽƉŚĂƌŵĂĐĞƵƟĐĂů
ĐŽŵƉĂŶŝĞƐŚĂƐƚŚĞƉŽƚĞŶƟĂůƚŽ
become a much bigger name in
the future, thanks to the way the
drugs industry is going.
Ergomed (ERGO:AIM) may
ŽŶůLJďĞǁŽƌƚŚάϭϬϮŵĂƚƚŚĞ
moment, yet a recent strategy
ƐŚŝŌƉůĂĐĞƐƚŚĞĐŽŵƉĂŶLJŝŶĂ
ŵƵĐŚƐƚƌŽŶŐĞƌƉŽƐŝƟŽŶĂŶĚ
ĂŶĂůLJƐƚƐĐĞƌƚĂŝŶůLJďĞůŝĞǀĞ
ĞĂƌŶŝŶŐƐĂƌĞŐŽŝŶŐƚŽĞdžƉůŽĚĞ
over the coming years.
,ĂǀŝŶŐŵĂĚĞĂůŽƐƐŝŶϮϬϭϳ͕
Ergomed is now forecast to
ŵĂŬĞάϭŵƉƌĞͲƚĂdžƉƌŽĮƚƚŚŝƐ
LJĞĂƌĂŶĚƐĞĞƚŚĂƚĮŐƵƌĞŝŶĐƌĞĂƐĞ
ďLJŶĞĂƌůLJĞŝŐŚƚͲĨŽůĚƚŽάϳ͘ϵŵŝŶ
ƚǁŽLJĞĂƌƐ͛ƟŵĞ͕ĂĐĐŽƌĚŝŶŐƚŽ
ĞƐƟŵĂƚĞƐĨƌŽŵƌĞƐĞĂƌĐŚŐƌŽƵƉ
ƋƵŝƚLJĞǀĞůŽƉŵĞŶƚ͘
WHAT DOES IT DO?
Ergomed hopes to become
ƚŚĞůĞĂĚŝŶŐŐůŽďĂůƉƌŽǀŝĚĞƌŽĨ
ƉŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞƐĞƌǀŝĐĞƐ
ďLJϮϬϮϬ͘/ƚŽīĞƌƐŽƵƚƐŽƵƌĐĞĚ
ƐĞƌǀŝĐĞƐƚŽƚŚĞƉŚĂƌŵĂĐĞƵƟĐĂů
ƐĞĐƚŽƌďLJŵĂŶĂŐŝŶŐĐůŝŶŝĐĂůƚƌŝĂůƐ
ĂŶĚŚĞůƉŝŶŐƚŚĞƐĞĐŽŵƉĂŶŝĞƐ
XXXX È BUY
ERGOMED
È BUY
(ERGO:AIM)
(xxx)
xxxp 227p
Stop loss: 165p
xxp
Market value: £102m
xxx
ĚĞǀĞůŽƉĚƌƵŐƐ͘
Approved drugs are then
ŵŽŶŝƚŽƌĞĚĂŌĞƌĞŶƚĞƌŝŶŐƚŚĞ
ŵĂƌŬĞƚƚŽĞdžƉůŽƌĞĂŶLJƉŽƚĞŶƟĂů
ƐŝĚĞĞīĞĐƚƐ͘
,ŝƐƚŽƌŝĐĂůůLJƚŚĞŐƌŽƵƉŚĂƐĂůƐŽ
ŚĂĚĂĐŽͲĚĞǀĞůŽƉŵĞŶƚďƵƐŝŶĞƐƐ
where it partners with pharma
ĂŶĚďŝŽƚĞĐŚĮƌŵƐĂŶĚŽīĞƌƐ
ŝƚƐĚƌƵŐĚĞǀĞůŽƉŵĞŶƚƐĞƌǀŝĐĞƐ
ĨŽƌĂĐƵƚŽĨĨƵƚƵƌĞƌŽLJĂůƟĞƐ͕ŝĨ
ƐƵĐĐĞƐƐĨƵů͘ƌŐŽŵĞĚŚĂƐĚĞĐŝĚĞĚ
to stop expanding this business.
At the moment the
ĐŽͲĚĞǀĞůŽƉŵĞŶƚŽƉĞƌĂƟŽŶ
ŽŶůLJĐŽŶƚĂŝŶƐƐŝdžƉĂƌƚŶĞƌƐŚŝƉƐ͕
ŝŶĐůƵĚŝŶŐŽŶĞƐƚƌƵĐŬǁŝƚŚ
ůůĞƌŐLJdŚĞƌĂƉĞƵƟĐƐ;'z͗/DͿ
ŝŶĞĐĞŵďĞƌϮϬϭϳ͘
ERGOMED’S FINANCIAL OVERVIEW
^ĂůĞƐ
WƌĞͲƚĂdžƉƌŽĮƚ
2017a
2018e
2019e
2020e
άϰϳ͘ϲŵ
;άϰ͘ϰŵͿ
άϱϱ͘ϳŵ
άϭ͘Ϭŵ
άϲϮ͘ϰŵ
άϱ͘ϵŵ
άϲϴ͘ϳŵ
άϳ͘ϵŵ
^ŽƵƌĐĞ͗ƋƵŝƚLJĞǀĞůŽƉŵĞŶƚ
12
| SHARES | 24 May 2018
tĞďĞůŝĞǀĞƌŐŽŵĞĚ͛ƐƐƚƌĂƚĞŐŝĐ
ƐŚŝŌŝƐƚŚĞƌŝŐŚƚŵŽǀĞĂƐŝƚ
ĨŽĐƵƐĞƐƚŚĞďƵƐŝŶĞƐƐŽŶĂĨĂƐƚͲ
growing market with recurring
ĐŽŶƚƌĂĐƚƐĂŶĚůŽLJĂůĐůŝĞŶƚƐĞĂŐĞƌ
to outsource services to meet
ƌĞŐƵůĂƚŽƌLJŚƵƌĚůĞƐ͘
$8BN OPPORTUNITY
ŚŝĞĨĞdžĞĐƵƟǀĞŽĸĐĞƌ;KͿ
Stephen Stamp says the services
ĚŝǀŝƐŝŽŶŝƐďĞŝŶŐƉƌŝŽƌŝƟƐĞĚŽǀĞƌ
ĐŽͲĚĞǀĞůŽƉŵĞŶƚƉĂƌƚŶĞƌƐŚŝƉƐ
ĂƐƉŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞďĞŶĞĮƚƐ
ĨƌŽŵŵŽƌĞƐƚĂďůĞĐĂƐŚŇŽǁĂŶĚ
ŶŽh<ͲůŝƐƚĞĚƌŝǀĂůƐ͘
WŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞŝŶǀŽůǀĞƐ
ĂŚƵŐĞĐŽůůĞĐƟŽŶŽĨĚĂƚĂĨƌŽŵ
ǀĂƌŝŽƵƐƐŽƵƌĐĞƐŽŶƉŽƚĞŶƟĂů
ƐŝĚĞĞīĞĐƚƐ͕ǁŚŝĐŚŝƐƚŚĞŶ
ĂŐŐƌĞŐĂƚĞĚĂŶĚĂŶĂůLJƐĞĚƚŽ
determine any risks.
/ƚĐŽƵůĚďĞƉŽƚĞŶƟĂůůLJ
ůƵĐƌĂƟǀĞĨŽƌƌŐŽŵĞĚĂƐƚŚĞ
ƉŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞŵĂƌŬĞƚŝƐ
expected to be worth over
GREAT IDEAS
LEVERS FOR GROWTH
Looking ahead, Ergomed
ĂŝŵƐƚŽŐƌŽǁŽƌŐĂŶŝĐĂůůLJ
DŝƌŽƐůĂǀZĞůũĂŶŽǀŝĐ
ĂŶĚƉŽƐƐŝďůLJƚŚƌŽƵŐŚĨƵƚƵƌĞ
;&ŽƵŶĚĞƌͬdžĞĐƵƟǀĞ
Ϯϰ͘ϴϰй
ĂĐƋƵŝƐŝƟŽŶƐǁŚŝĐŚĐŽƵůĚŚĞůƉ
sŝĐĞͲŚĂŝƌŵĂŶͿ
ŝƚďƵŝůĚŽŶĞdžŝƐƟŶŐƐĞƌǀŝĐĞƐŽƌ
^ůĂƚĞƌ/ŶǀĞƐƚŵĞŶƚƐ
ϵ͘ϵϳй
enter new territories.
KĐƚŽƉƵƐ
/ŶůĂƚĞϮϬϭϳ͕ƚŚĞĐŽŵƉĂŶLJ
ϲ͘ϴϭй
/ŶǀĞƐƚŵĞŶƚƐ
acquired contract research
Strategic Equity
ŽƌŐĂŶŝƐĂƟŽŶW^ZĨŽƌƵƉƚŽΦϱ͘ϳŵ͕
ϱ͘Ϯϰй
ĂƉŝƚĂů
ĂďƵƐŝŶĞƐƐǁŚŝĐŚƐƉĞĐŝĂůŝƐĞƐ
,ĂƌǁŽŽĚĂƉŝƚĂů
ϯ͘ϴϴй
ŝŶƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨŽƌƉŚĂŶ
^ŽƵƌĐĞ͗ZĞƵƚĞƌƐ
drugs for rare diseases.
FUND MANAGER FANS
The orphan drug market is
/ŶǀĞƐƚŵĞŶƚƚƌƵƐƚ^ƚƌĂƚĞŐŝĐƋƵŝƚLJ
forecast to grow at a compound
Capital (SECͿŚŽůĚƐƌŐŽŵĞĚŝŶ
ƉŽƌƞŽůŝŽ͘&ƵŶĚŵĂŶĂŐĞƌ<ĞŶ
ŝƚƐƉŽƌƞŽůŝŽ͘&ƵŶĚŵĂŶĂŐĞƌ:Ğī
tŽƩŽŶƐĂLJƐƌŐŽŵĞĚŝƐĂŚŝĚĚĞŶ ĂŶŶƵĂůŐƌŽǁƚŚƌĂƚĞŽĨϭϭй
,ĂƌƌŝƐďĞůŝĞǀĞƐƚŚĞĐŽŵƉĂŶLJ͛Ɛ
ŐĞŵĂƐŝƚƐďƵLJĂŶĚďƵŝůĚƐƚƌĂƚĞŐLJ ĨƌŽŵϮϬϭϳƚŽŚŝƚĂŶĂŶƟĐŝƉĂƚĞĚ
new strategy is a step in the right ĂŶĚĨŽĐƵƐŽŶƉŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞ ΨϮϬϬďŶŝŶŵĂƌŬĞƚƐĂůĞƐďLJϮϬϮϮ͘
ƌŐŽŵĞĚŝƐĂůƐŽĂŶƟĐŝƉĂƟŶŐ
ĚŝƌĞĐƟŽŶĂƐƉŚĂƌŵĂĮƌŵƐĂƌĞ
ĐŽƵůĚďĞĂƌĞĐŝƉĞĨŽƌƐƵĐĐĞƐƐ͘
outsourcing more work to meet
tŽƩŽŶďĞůŝĞǀĞƐŝĨƚŚĞĐŽŵƉĂŶLJ growth through its acquired
ďƵƐŝŶĞƐƐWŚĂƌŵĂĐŽsŝŐŝůĂŶĐĞ͕
ŝŶĐƌĞĂƐŝŶŐƌĞŐƵůĂƚŽƌLJŚƵƌĚůĞƐ͘
ĐŽŶƟŶƵĞƐƚŽŐĂŝŶĐƌŝƟĐĂůŵĂƐƐŝƚ
ĂŵĞĚŝĐĂůŝŶĨŽƌŵĂƟŽŶƐĞƌǀŝĐĞ
,ĂƌƌŝƐŇĂŐƐƚŚĂƚƌŐŽŵĞĚ͛Ɛ
ĐŽƵůĚƉŽƚĞŶƟĂůůLJďĞŶĞĮƚĨƌŽŵĂ
chairman Peter George used to
ƌĞͲƌĂƟŶŐĂŶĚďĞƐĞĞŶĂƐĂƐƚƌĂƚĞŐŝĐ provider.
ƋƵŝƚLJĞǀĞůŽƉŵĞŶƚĂŶĂůLJƐƚ
ďĞKĂƚƐƵĐĐĞƐƐĨƵůƐĞƌǀŝĐĞƐ
ĂƐƐĞƚŝŶƚŚĞƐĞĐƚŽƌŽǀĞƌƟŵĞ͘
ůŝnjĂďĞƚŚ<ůĞŝŶƐĂLJƐŐƌŽǁƚŚŝŶ
group Clinigen (CLIN: AIM),
Savvy investors have
WŚĂƌŵĂĐŽsŝŐŝůĂŶĐĞŝƐůŝŬĞůLJƚŽ
ĂŶŽƚŚĞƌƐƚŽĐŬŝŶŚŝƐƉŽƌƞŽůŝŽ͘
started to become aware of
ďĞƐƵƉƉŽƌƚĞĚďLJDΘ͕ǁŚŝůĞŝƚƐ
ƌŐŽŵĞĚĂůƐŽĨĞĂƚƵƌĞƐŝŶ
ƌŐŽŵĞĚ͛ƐƉŽƚĞŶƟĂůǁŝƚŚƚŚĞ
ĂƵƚŽŵĂƟŽŶƐĞƌǀŝĐĞƐƐŚŽƵůĚůŝŌ
>ŝǀŝŶŐďƌŝĚŐĞh<DŝĐƌŽĂƉ
ƐŚĂƌĞƐŚĂǀŝŶŐƌĞĐĞŶƚůLJŚŝƚĂŶ
margins and expand premium
&ƵŶĚ͛Ɛ;'ϬϬϱϱ^ϵyϵϴͿ
ĂůůͲƟŵĞŚŝŐŚŽĨϮϮϴƉ;ϮϭDĂLJͿ͘
ĂĐƟǀŝƟĞƐ͘
According to Ergomed,
ERGOMED’S CASH FLOW PROFILE
ĂƵƚŽŵĂƟŽŶŝƐůŝŬĞůLJƚŽ
2017a
2018e
2019e
2020e
ĐŽŵƉůĞƚĞϴϬйŽĨŵĂŶƵĂůĐĂƐĞ
ƉƌŽĐĞƐƐŝŶŐďLJϮϬϮϬ͕ŚĞůƉŝŶŐƚŚĞ
dŽƚĂů
άϭ͘ϯŵ
άϯ͘ϴŵ
άϴ͘ϳŵ
άϭϬ͘ϴŵ
ĐŽŵƉĂŶLJĐŽŵƉĞƚĞǁŝƚŚůŽǁͲĐŽƐƚ
tŽƌŬŝŶŐĐĂƉŝƚĂůŵŽǀĞŵĞŶƚ ;άϭ͘ϬŵͿ
;άϭ͘ϳŵͿ
;άϭ͘ϰŵͿ
;άϭ͘ϯŵͿ
ƉƌŽǀŝĚĞƌƐŽĨƉŚĂƌŵĂĐŽǀŝŐŝůĂŶĐĞ
ƐĞƌǀŝĐĞƐ͘;>D:Ϳ
KƉĞƌĂƟŶŐĐĂƐŚŇŽǁ
άϬ͘ϰŵ
άϮ͘ϭŵ
άϳ͘ϯŵ
άϵ͘ϱŵ
ERGOMED’S LARGEST
SHAREHOLDERS
Tax
;άϬ͘ϰŵͿ
;άϬ͘ϭŵͿ
;άϬ͘ϱŵͿ
;άϭ͘ϮŵͿ
/ŶƚĞƌĞƐƚ
άϬ͘Ϭŵ
;άϬ͘ϯŵͿ
άϬ͘Ϭŵ
άϬ͘Ϭŵ
ĂƐŚŇŽǁĨƌŽŵŽƉĞƌĂƟŽŶƐ
άϬ͘Ϭŵ
άϭ͘ϴŵ
άϲ͘ϴŵ
άϴ͘ϯŵ
ĂƐŚŇŽǁĨƌŽŵŝŶǀĞƐƟŶŐ
;άϯ͘ϵŵͿ
;άϬ͘ϳŵͿ
;άϬ͘ϳŵͿ
;άϬ͘ϳŵͿ
240
ĂƐŚŇŽǁĨƌŽŵĮŶĂŶĐŝŶŐ
άϮ͘ϳŵ
άϯ͘ϵŵ
άϬ͘Ϭŵ
άϬ͘Ϭŵ
220
EĞƚ/ŶĐƌĞĂƐĞ/ŶĂƐŚ
;άϭ͘ϮŵͿ
άϰ͘ϵŵ
άϲ͘ϭŵ
άϳ͘ϱŵ
180
KǀĞƌĂůůĐĂƐŚŇŽǁ
;άϭ͘ϮŵͿ
άϰ͘ϵŵ
άϲ͘ϭŵ
άϳ͘ϱŵ
160
zĞĂƌͲĞŶĚĐĂƐŚͬ;ĚĞďƚͿ
άϯ͘Ϯŵ
άϴ͘ϭŵ
άϭϰ͘Ϯŵ
άϮϭ͘ϴŵ
^ŽƵƌĐĞ͗ƋƵŝƚLJĞǀĞůŽƉŵĞŶƚ
BROKER SAYS: 2
0
0
ERGOMED
FTSE ALL SHARE
Source: Thomson Reuters Datastream
ΨϴďŶďLJϮϬϮϰ͘
hƐŝŶŐĚĂƚĂĂŶĚƐŽƉŚŝƐƟĐĂƚĞĚ
ƐƚĂƟƐƟĐƐ͕ƌŐŽŵĞĚĐĂŶ
determine if any there are any
ƐŝĚĞĞīĞĐƚƐŽƌƉŽƚĞŶƟĂůĚƌƵŐ
ŝŶƚĞƌĂĐƟŽŶƐ͕ƉŽƐƐŝďůLJůĞĂĚŝŶŐ
ƚŽĚƌƵŐƌĞůĂďĞůůŝŶŐ͘
dŚĞŽƵƚĐŽŵĞĐŽƵůĚĞǀĞŶůĞĂĚ
ƚŽĂƌĞĐŽŵŵĞŶĚĞĚǁŝƚŚĚƌĂǁĂů
of a product if it is deemed
to be unsafe.
200
140
120
100
Rebased to first
2015
2016
2017
2018
24 May 2018 | SHARES |
13
GREAT IDEAS
This investment trust
has been reborn and
is ready to strike back
British Empire Trust has addressed issues that weighed on performance
/
WHAT’S UNDER THE HOOD?
ƐĂƚϯϬƉƌŝůϮϬϭϴ͕ƚŽƉ
ŚŽůĚŝŶŐƐŝŶĐůƵĚĞĚ:ĂƉĂŶ
^ƉĞĐŝĂů^ŝƚƵĂƟŽŶƐ͕ĂďĂƐŬĞƚ
(BTEM) 758p
ŽĨϭϳ:ĂƉĂŶĞƐĞƐƚŽĐŬƐǁŝƚŚĂ
Stop loss: 606.4p
ƐŝŐŶŝĮĐĂŶƚƉƌŽƉŽƌƟŽŶŽĨƚŚĞŝƌ
Market value: £865m
market cap in net cash.
/ƚĂůƐŽŝŶǀĞƐƚƐŝŶ^ǁŝƐƐͲůŝƐƚĞĚ
estate companies and private
ŚŽůĚŝŶŐĐŽŵƉĂŶLJWĂƌŐĞƐĂ͕
ĞƋƵŝƚLJƉŽƌƞŽůŝŽƐ͘
ũŽŝŶƚůLJĐŽŶƚƌŽůůĞĚďLJƚŚĞ&ƌğƌĞ
dŚĞƌĞŝƐĂůƐŽŝŶĐƌĞĂƐĞĚ
ĂŶĚĞƐŵĂƌĂŝƐĨĂŵŝůŝĞƐĂŶĚ
ĐŽŶǀŝĐƟŽŶǁŝƚŚŝŶƚŚĞƉŽƌƞŽůŝŽ
ǁŚŽƐĞŽŶůLJĂƐƐĞƚŝƐŝƚƐϱϬй
ǁŝƚŚůĂƌŐĞƌŚŽůĚŝŶŐƐŝŶĐƌĞĂƐĞĚŝŶ
ƐƚĂŬĞŝŶ'ƌŽƵƉĞƌƵdžĞůůĞƐ
ƐŝnjĞƚŽƌĞŇĞĐƚĂƵĞƌŶĨƌĞƵŶĚ͛Ɛ͚ďĞƐƚ >ĂŵďĞƌƚ͕ĂĞůŐŝĂŶͲůŝƐƚĞĚ
ŝĚĞĂƐ͛͘ƐƌŝƟƐŚŵƉŝƌĞŽŌĞŶ
ŚŽůĚŝŶŐĐŽŵƉĂŶLJǁŝƚŚƐƚĂŬĞƐ
ƚĂŬĞƐĂŶĂĐƟǀŝƐƚƐƚĂŶĐĞŝŶŽƌĚĞƌƚŽ ŝŶĚŝĚĂƐĂŶĚWĞƌŶŽĚZŝĐĂƌĚ
ĐƌĞĂƚĞǀĂůƵĂƟŽŶĐĂƚĂůLJƐƚƐ͕ůĂƌŐĞƌ
among others.
ƉŽƐŝƟŽŶƐŝnjĞƐĂŶĚŐƌĞĂƚĞƌǀŽƟŶŐ
KƚŚĞƌůĞĂĚŝŶŐƌŝƟƐŚŵƉŝƌĞ
power are advantageous.
ƉŽƐŝƟŽŶƐŝŶĐůƵĚĞƚŚĞh^ŚĞĚŐĞ
Throughout much of the trust’s funds WĞƌƐŚŝŶŐ^ƋƵĂƌĞ;W^,Ϳ
ƌĞĐĞŶƚŚŝƐƚŽƌLJ͕͚ǀĂůƵĞ͛ĂƐĂƐƚLJůĞ
and dŚŝƌĚWŽŝŶƚKīƐŚŽƌĞ
(TPOU) ĂŶĚǁŝƚŚŝŶƚŚĞůŝƐƚĞĚ
ŚĂƐƵŶĚĞƌƉĞƌĨŽƌŵĞĚ͕ĐƌĞĂƟŶŐ
ƉƌŝǀĂƚĞĞƋƵŝƚLJƐƉĂĐĞ͕ĂŚŽůĚŝŶŐ
a performance headwind and
in ZŝǀĞƌƐƚŽŶĞŶĞƌŐLJ;Z^Ϳ, an
ƉĂƌƟĂůůLJĞdžƉůĂŝŶŝŶŐƚŚĞĚŝƐĐŽƵŶƚ
ĞdžĞŵƉůĂƌŽĨĂƉŽƌƞŽůŝŽŚŽůĚŝŶŐ͕
ƚŽŶĞƚĂƐƐĞƚǀĂůƵĞ͘
trading at a wide discount to
ŽŵƉĞůůŝŶŐĐĂƚĂůLJƐƚƐǁŽƵůĚ
ĂƐƐĞƚǀĂůƵĞĂŶĚǁŝƚŚŚŝĚĚĞŶ
ŝŶĐůƵĚĞĂŵĂƌŬĞƚƐŚŝŌƚŽĨĂǀŽƵƌ
ǀĂůƵĞƵŶĚĞƌƚŚĞŚŽŽĚ͘;:Ϳ
͚ǀĂůƵĞ͛ŽǀĞƌ͚ŐƌŽǁƚŚ͕͛ĂƐǁĞůůĂƐ
ƚŚĞƉŽƐƐŝďůĞƵƉƐŝĚĞĂƐĐĂƚĂůLJƐƚƐ
ŽŶŝŶĚŝǀŝĚƵĂůƉŽƌƞŽůŝŽŚŽůĚŝŶŐƐ
BROKER SAYS: N/A
BAUERNFREUND’S BEST IDEAS ĐŽŵĞƚŽĨƌƵŝƟŽŶƚŚƌŽƵŐŚ
BRITISH EMPIRE TRUST
^ŝŶĐĞŚŝƐϮϬϭϱĂƉƉŽŝŶƚŵĞŶƚ͕
ǀĂůƵĂƟŽŶƵƉůŝŌƐ͕ƌĞƚƵƌŶƐŽĨ
FTSE ALL SHARE - PRICE INDEX
780
ĨƵŶĚŵĂŶĂŐĞƌ:ŽĞĂƵĞƌŶĨƌĞƵŶĚ ĐĂƉŝƚĂůŽƌǁŝŶĚͲƵƉƐ͘
760
ŚĂƐŵŽĚŝĮĞĚƚŚĞŝŶǀĞƐƚŵĞŶƚ
<ĞLJƌŝƐŬƐƚŽĐŽŶƐŝĚĞƌŝŶĐůƵĚĞ
740
720
process. The manager is more
ƚŚĞƉƌĞƐĞŶĐĞŽĨƚǁŽůĂLJĞƌƐŽĨ
700
focused on a core universe of
ĚŝƐĐŽƵŶƚƌŝƐŬ͕ĂƐƚLJůĞďŝĂƐƚŽ
680
660
ĂƌŽƵŶĚϯϱϬƐƚŽĐŬƐŵĂĚĞƵƉŽĨ
͚ǀĂůƵĞ͛ĂŶĚĐƵƌƌĞŶĐLJƌŝƐŬĂƌŝƐŝŶŐ
640
ŝŶǀĞƐƚŵĞŶƚŽƌŚŽůĚŝŶŐĐŽŵƉĂŶŝĞƐ ĨƌŽŵĂƉƌĞĚŽŵŝŶĂŶƚůLJŶŽŶͲ
620 Rebased to first
2017
2018
ŝŶĐůƵĚŝŶŐĐŽŶŐůŽŵĞƌĂƚĞƐ͕ƌĞĂů
ƐƚĞƌůŝŶŐƉŽƌƞŽůŝŽ͘
BRITISH EMPIRE
TRUST È BUY
Source: Thomson Reuters Datastream
ŶǀĞƐƚŽƌƐƐĞĞŬŝŶŐĂĨƵŶĚŇƵƐŚ
with bargain stocks and
ƵƉƐŝĚĞĐĂƚĂůLJƐƚƐƐŚŽƵůĚďƵLJ
ƌŝƟƐŚŵƉŝƌĞdƌƵƐƚ;dDͿ.
/ƚĂŝŵƐƚŽĂĐŚŝĞǀĞůŽŶŐͲƚĞƌŵ
ĂďƐŽůƵƚĞƌĞƚƵƌŶƐďLJŝŶǀĞƐƟŶŐŝŶ
ƵŶĚĞƌǀĂůƵĞĚĂƐƐĞƚƐ͘
/ƚŽīĞƌƐƐŚĂƌĞŚŽůĚĞƌƐǀĂůƵĞ
ǁŝƚŚŝŶƚŚĞƉŽƌƞŽůŝŽ͛ƐƵŶĚĞƌůLJŝŶŐ
ĂƐƐĞƚƐĂŶĚƚŚĞƐŚĂƌĞƉƌŝĐĞĂůƐŽ
trades at a discount to the
ƚƌƵƐƚ͛ƐŽǁŶŶĞƚĂƐƐĞƚǀĂůƵĞ
;ĐƵƌƌĞŶƚůLJϵ͘ϰйͿ͘
/ŶǀĞƐƚŵĞŶƚďĂŶŬ:ĞīĞƌŝĞƐ
argues: ‘Having addressed many
ŽĨƚŚĞŝƐƐƵĞƐƚŚĂƚƉƌĞǀŝŽƵƐůLJ
ĚŽŐŐĞĚƚŚĞĨƵŶĚ͕ŶĂŵĞůLJƚŽŽ
ůŝƩůĞĨŽĐƵƐǁŝƚŚŝŶƚŚĞƉŽƌƞŽůŝŽ
ĂŶĚŚŽůĚŝŶŐƚŽŽŵƵĐŚĐĂƐŚ͕ǁĞ
ƐĞĞƌŝƟƐŚŵƉŝƌĞĂƐĂƌĞƐƵƌŐĞŶƚ
ƉƌŽƉŽƐŝƟŽŶ͘
͚ůƚŚŽƵŐŚƚŚĞĨƵŶĚŚĂƐďĞĞŶ
ƐǁŝŵŵŝŶŐĂŐĂŝŶƐƚƚŚĞƟĚĞ
of growth favoured markets,
ƵŶĚĞƌůLJŝŶŐƉŽƌƞŽůŝŽƌĞƚƵƌŶƐĂƌĞ
ĂƩƌĂĐƟǀĞ͕ǁŝƚŚƉŽƚĞŶƟĂůůLJĞǀĞŶ
ŵŽƌĞǀĂůƵĞŶŽǁĞŵďĞĚĚĞĚ
ǁŝƚŚŝŶƚŚĞƉŽƌƞŽůŝŽƚŚĂŶŚĂƐ
ďĞĞŶƚŚĞĐĂƐĞŚŝƐƚŽƌŝĐĂůůLJ͛͘
14
| SHARES | 24 May 2018
032018
JULY
etc.venues - St Paul’s
200 Aldersgate
London
EC1A 4HD
Sponsored by
INVESTMENT TRUSTS FOR INCOME
In many investors’ minds investment trusts are thought of as income generating
investments. Indeed there are many that have fantastic, long-term track records of
paying dividends and feature in many investors’ portfolios.
There are lots of different ways that investment trusts invest to generate their
income. They can be used to get exposure to different markets and asset classes
so understanding where and how they put their money to use can help you better
understand which investment trusts are right for you.
Come to the free Investment Trusts for Income event to hear insights from leading
fund managers on how the investment trusts they are responsible for generate
income, get your chance to ask the questions that matter to you and network with
your fellow investors.
WIN A HAMPER
Attend the event on 03 July
2018 and you will be entered
into a prize draw to win a
Fortnum & Mason Wayfarer
Hamper worth £150 which
will be presented on the night
(Terms and Conditions apply)
Aberdeen Diversified Income and Growth Trust
The goal of the trust is to generate sustainable long-term returns through a
genuinely diversified portfolio making use of Aberdeen’s global investment
platform and specialist capabilities.
SLI Property Income Trust
The Trust owns a diversified portfolio of UK commercial properties with an emphasis
on retail, office and industrial and has outperformed its sector on a 1, 3 and 5
year basis.
SAINTS Scottish American Investment Company
Founded in 1873 SAINTS is one of the oldest investment trust companies still in
existence. Its aim is to deliver above-inflation dividend growth principally through
investments in global equities, but also bonds, property and other asset types.
EVENT CHAIR
Merchants Investment Trust
Established in 1889 The Merchants Trust investment focus is on the UK’s leading
companies and has a track record of 35 consecutive years of dividend increases.
Follow this link www.sharesmagazine.co.uk/events for full details and
to register for your complimentary ticket.
Event details
Registration contact
Registrations 18:00
Presentations start at 18:30
Corinne Bailey
corinne.bailey@sharesmagazine.co.uk
020 7378 4406
Complimentary drinks and buffet
available after the presentations
Tom Sieber
Deputy editor
– Shares Magazine
Tom will be presenting on how
income can help unlock the
wealth generating potential of
the markets.
GREAT IDEAS UPDATES
AVIVA
(AV.) 550P
CINEWORLD
(CINE) 267p
Gain to date: 8.1%
Gain to date: 1%
Original entry point:
Buy at 510.5p, 14 Dec 2017
Original entry point:
Buy at 264.4p, 3 May 2018
>/&/E^hZE giant Aviva (AV.) has an
ĂĚǀĂŶƚĂŐĞǁŚĞŶŝƚĐŽŵĞƐƚŽƌŝǀĂůƐŝŶƚŚĞ
ƉƵƌĐŚĂƐŝŶŐŽĨůĂƌŐĞŬƐŽĨĂŶŶƵŝƚLJďƵƐŝŶĞƐƐ͘
'ŝǀĞŶƚŚĞĐŽŵƉĂŶLJŝƐĂĐŽŶŐůŽŵĞƌĂƚĞ͖ŝƚĂůƌĞĂĚLJ
ŚĂƐƌĞůĂƟŽŶƐŚŝƉƐǁŝƚŚƐŽŵĞŽĨŝƚƐƚĂƌŐĞƚƐ͘
&ŽƌĞdžĂŵƉůĞ͕ƚĂŬĞƚŚĞƌĞĐĞŶƚŚĞĂĚůŝŶĞͲŐƌĂďďŝŶŐ
άϵϮϱŵƉƵƌĐŚĂƐĞŽĨMarks & Spencer‘s (MKS)
ďƵůŬĂŶŶƵŝƚLJ͕ĂĚĞĂůŵŽƌĞƚŚĂŶϱϬйůĂƌŐĞƌƚŚĂŶ
ŝƚƐŶĞdžƚďŝŐŐĞƐƚƚƌĂŶƐĂĐƟŽŶ͕ƚŚĞWĞĂƌƐŽŶWĞŶƐŝŽŶ
WůĂŶǁŚŝĐŚĐŽƐƚάϲϬϬŵůĂƐƚKĐƚŽďĞƌ͘
ǀŝǀĂĂůƌĞĂĚLJƉƌŽǀŝĚĞĚŚĞĂůƚŚĂŶĚŐĞŶĞƌĂů
ŝŶƐƵƌĂŶĐĞĐŽǀĞƌĨŽƌDΘ^ĞŵƉůŽLJĞĞƐ͕ĂƐǁĞůůĂƐ
ƚƌĂǀĞůŝŶƐƵƌĂŶĐĞƚŽDΘ^ĂŶŬ͛ƐƌĞƚĂŝůĐƵƐƚŽŵĞƌƐ͘
ƌĞĚŝƚƋƵĂůŝƚLJŝƐƉĂƌĂŵŽƵŶƚĨŽƌĂŶŶƵŝƚLJĚĞĂůƐ͕
ĂƐĂŶLJŵŝƐĐŚŝĞĨǁŚĞŶŝƚĐŽŵĞƐƚŽƉĞŶƐŝŽŶƐďƌŝŶŐƐ
ƚŚĞǁƌĂƚŚŽĨƚŚĞ'ŽǀĞƌŶŵĞŶƚĂŶĚƚŚĞŵĞĚŝĂĂůŝŬĞ͘
dŚŝƐŝƐĂŶĂƌĞĂŝŶǁŚŝĐŚǀŝǀĂƐŚŝŶĞƐ͕ŚĂǀŝŶŐĂŶ
ĐƌĞĚŝƚƌĂƟŶŐ͘
dŚŝƐŵĂŬĞƐĂŚƵŐĞĚŝīĞƌĞŶĐĞǁŚĞŶŝƚ
ĐŽŵĞƐƚŽƉĞƌƐƵĂĚŝŶŐƚŚĞƉĞŶƐŝŽŶƚƌƵƐƚĞĞƐ
ĂƐƚŽǁŚŝĐŚŝŶƐƟƚƵƟŽŶŝƐƚŚĞŵŽƐƚĮŶĂŶĐŝĂůůLJ
ƐŽƵŶĚƚŽŚĂŶĚůĞƚŚĞĂƐƐĞƚƐ͘WĞƚĞƌ<ĞƩ͕ĂŶĂůLJƐƚ
ĂƚŝŶǀĞƐƚŵĞŶƚďĂŶŬ:ĞīĞƌŝĞƐ͕ƐĂLJƐƚŚŝƐƐƚĂƚƵƐ
ŐŝǀĞƐǀŝǀĂĂŶĂĚǀĂŶƚĂŐĞŽǀĞƌŝƚƐƵŶƌĂƚĞĚĂŶĚ
ƵŶůŝƐƚĞĚƉĞĞƌƐZŽƚŚĞƐĂLJĂŶĚW/͘
A DECENT trading update on 16 May helps to put
our trade on Cineworld (CINE) ŝŶƚŚĞƌŝŐŚƚĚŝƌĞĐƟŽŶ͘
/ƚƌĞƉŽƌƚĞĚϲ͘ϳйƌŝƐĞŝŶŐƌŽƵƉƌĞǀĞŶƵĞĂƚĐŽŶƐƚĂŶƚ
ĐƵƌƌĞŶĐŝĞƐ͘dŚĞh^ǁĂƐƚŚĞďĞƐƚƉĞƌĨŽƌŵĞƌǁŝƚŚ
ĂϭϬ͘ϮйƌŝƐĞ͕ǁŚŝůĞƚŚĞh<ĨĞůůϮ͘ϭйĂŶĚĞŶƚƌĂů
ĂƐƚĞƌŶƵƌŽƉĞͬ/ƐƌĂĞůƐůŝƉƉĞĚďLJϮ͘ϰй͘
/ƚŝƐǁŽƌƚŚŶŽƟŶŐƚŚĞƌĞƉŽƌƟŶŐƉĞƌŝŽĚ;ϭ:ĂŶƚŽ
ϭϯDĂLJͿŚĂĚǀĞƌLJƚŽƵŐŚĐŽŵƉĂƌĂƟǀĞĮŐƵƌĞƐƚŽďĞĂƚ
ŽŶĂLJĞĂƌͲŽŶͲLJĞĂƌďĂƐŝƐĨŽƌƵƌŽƉĞĂƐůĂƐƚLJĞĂƌ͛Ɛ
ƉĞƌŝŽĚǁĂƐƐƚĞĚďLJƚŚĞŵĂƐƐŝǀĞƐƵĐĐĞƐƐŽĨ
Beauty and the Beast and The Fate of the Furious͘
͚dŚĞ;ůĂƚĞƐƚͿƌĞƐƵůƚƐůĂƌŐĞůLJƌĞŇĞĐƚƚŚĞǀŽůĂƟůŝƚLJ
ŝŶƚŚĞĮůŵƐůĂƚĞ͕ǁŚĞƌĞĂŵĞĂŶŝŶŐĨƵůƚƌĞŶĚŝƐ
ĚŝĸĐƵůƚƚŽĞƐƚĂďůŝƐŚĂƚƚŚŝƐƉŽŝŶƚŽĨƚŚĞLJĞĂƌ͕͛ƐĂLJƐ
h^ĂŶĂůLJƐƚ,ĞŝĚŝZŝĐŚĂƌĚƐŽŶ͘
tĞ͛ƌĞŵŽƌĞŝŶƚĞƌĞƐƚĞĚŝŶŝŶĞǁŽƌůĚ͛Ɛ
ƉĞƌĨŽƌŵĂŶĐĞŽǀĞƌƚŚĞŶĞdžƚϭϮŵŽŶƚŚƐĂƐ
ƐƵĐĐĞƐƐĨƵůŝŶƚĞŐƌĂƟŽŶŽĨƚŚĞŶĞǁůLJͲĂĐƋƵŝƌĞĚh^
ŽƉĞƌĂƟŽŶƐǁŝůůďĞŬĞLJŝŶƐŝůĞŶĐŝŶŐƚŚĞĐƌŝƟĐƐǁŚŽ
ƐĂLJƚŚĞďƵƐŝŶĞƐƐƐŚŽƵůĚŶ͛ƚŚĂǀĞďŽƵŐŚƚZĞŐĂů
ŶƚĞƌƚĂŝŶŵĞŶƚĂŶĚƚĂŬĞŶŽŶƐŽŵƵĐŚĚĞďƚ͘
dŚĞĮůŵƐůĂƚĞĨŽƌƚŚĞƌĞƐƚŽĨϮϬϭϴůŽŽŬƐƌĞĂůůLJ
ŐŽŽĚĂŶĚǁĞĚŽŶ͛ƚďĞůŝĞǀĞƚŚĞtŽƌůĚƵƉĨŽŽƚďĂůů
ǁŝůůĐĂƵƐĞƚŽŽŵƵĐŚŽĨĂĚŝƉŝŶĞĂƌŶŝŶŐƐƐŚŽƵůĚ
ĐŽŶƐƵŵĞƌƐďĞĐŽŵĞĚŝƐƚƌĂĐƚĞĚďLJƚŚĞƐƉŽƌƟŶŐ
ĞǀĞŶƚ͘ŶĂůLJƐƚƐƐŚŽƵůĚŚĂǀĞĂůƌĞĂĚLJĨĂĐƚŽƌĞĚŝŶ
ƐŽŵĞĚŝƐƌƵƉƟŽŶŝŶƚŚĞŝƌĨŽƌĞĐĂƐƚƐ͘
550
540
530
520
510
500
490
480
Rebased to first
2017
2018
340
CINEWORLD
FTSE ALL SHARE
Source: Thomson Reuters Datastream
AVIVA
FTSE ALL SHARE
Source: Thomson Reuters Datastream
560
320
300
280
260
240
220
200
Rebased to first
SHARES SAYS: È
Keep buying these shares as the market for bulk
annuities is still largely untapped with Aviva looking
to gain a real foothold in it. (DS)
SHARES SAYS: È
Keep buying. (DC)
BROKER SAYS: 14 5
BROKER SAYS: 12 1
16
| SHARES | 24 May 2018
1
2017
2018
0
GREAT IDEAS UPDATES
SUPERB
STOCKS FOR
Gain to date: 31.7%
Original entry point:
Buy at 394.88p, 21 Dec 2017
2018
UPDATE
d,KEd/Eh/E'ƚƌĂŶƐĨŽƌŵĂƟŽŶŽĨƐƉĞĐŝĂůŝƐƚ
ŵĞĚŝĂŽƵƞŝƚFuture (FUTR) ŝƐƌĞŇĞĐƚĞĚŝŶĂŶ
ŝŵƉƌĞƐƐŝǀĞƐĞƚŽĨĮƌƐƚŚĂůĨƌĞƐƵůƚƐ;ϭϳDĂLJͿ͘
tĞůůͲŬŶŽǁŶƟƚůĞƐŝŶ&ƵƚƵƌĞ͛ƐƉŽƌƞŽůŝŽŝŶĐůƵĚĞ
Techradar and Total Film͘,ĂǀŝŶŐĚĞǀĞůŽƉĞĚĂ
ƚƌĂŶƐĨĞƌĂďůĞƉůĂƞŽƌŵ͕ƚŚĞĐŽŵƉĂŶLJ͛ƐƐƚƌĂƚĞŐLJ
ƵŶĚĞƌĐŚŝĞĨĞdžĞĐƵƟǀĞŝůůĂŚLJŶŐͲdŚŽƌŶĞŚĂƐ
ďĞĞŶƚŽŵŽŶĞƟƐĞŝƚƐƐƉĞĐŝĂůŝƐƚĐŽŶƚĞŶƚƚŚƌŽƵŐŚ
ĞͲĐŽŵŵĞƌĐĞ͕ůŝĐĞŶƐŝŶŐĂŶĚĚŝŐŝƚĂůĂĚǀĞƌƟƐŝŶŐ͘
dŚĞĐŽŵƉĂŶLJŝƐůŽŽŬŝŶŐƚŽŵĂŬĞĂĐƋƵŝƐŝƟŽŶƐ
ŽĨŽƚŚĞƌƉƵďůŝƐŚŝŶŐĂƐƐĞƚƐǁŚŝĐŚĐĂŶďĞĨĞĚŝŶƚŽ
ƚŚŝƐŵŽĚĞů͘
ZĞǀĞŶƵĞŝŶƚŚĞDĞĚŝĂĚŝǀŝƐŝŽŶǁĂƐƵƉϲϮйƚŽ
άϮϲ͘Ϯŵ͕ƚĂŬŝŶŐŝƚƚŽŽǀĞƌϱϬйŽĨƚŽƚĂůŐƌŽƵƉƌĞǀĞŶƵĞ͘
ZĞƐĞĂƌĐŚŐƌŽƵƉĚŝƐŽŶƐĂLJƐ&ƵƚƵƌĞ͛ƐŽƉƉŽƌƚƵŶŝƚLJ
ĨŽƌŐƌŽǁƚŚŝŶƚŚĞh^ŝƐ͚ƉĂƌƟĐƵůĂƌůLJĂƩƌĂĐƟǀĞ͛͘/ƚ
ĂĚĚƐ͚͗DŽŶĞƟƐĂƟŽŶŽĨƚŚĞh^ĂƵĚŝĞŶĐĞŝƐŝŵƉƌŽǀŝŶŐ͕
ďƵƚŝƐƐƟůůĂůŽŶŐǁĂLJďĞůŽǁƚŚĂƚŽĨƚŚĞh<͘;dŚĞ
ƌĞĐĞŶƚĂĐƋƵŝƐŝƟŽŶŽĨͿEĞǁďĂLJDĞĚŝĂĂĚĚƐĨƵƌƚŚĞƌ
ĚŝǀĞƌƐŝĮĐĂƟŽŶŽĨƚŚĞƌĞǀĞŶƵĞďĂƐĞ͕ŝŶƚƌŽĚƵĐŝŶŐϮ
ŽƉƉŽƌƚƵŶŝƟĞƐŝŶŝŶĨŽƌŵĂƟŽŶĂŶĚĞǀĞŶƚƐ͛͘
&ŝŶĂŶĐĞĚŝƌĞĐƚŽƌWĞŶŶLJ>ĂĚŬŝŶͲƌĂŶĚĐŽŶĮƌŵĞĚƚŽ
SharesƚŚĂƚƚŚĞďƵƐŝŶĞƐƐǁŝůůƐƟůůĐŽŶƐŝĚĞƌĂĚŝǀŝĚĞŶĚ
ƉĂLJŵĞŶƚĨŽƌƚŚĞ^ĞƉƚĞŵďĞƌϮϬϭϴĮŶĂŶĐŝĂůLJĞĂƌ͘
FUTURE
FTSE ALL SHARE
Source: Thomson Reuters Datastream
550
500
450
400
350
300
250
200
150
Rebased to first
2017
2018
SHARES SAYS: È
We continue to like the story and are not put off by
a September 2019 price-to-earnings ratio of 19.7
times based on Numis forecasts given the positive
momentum in the business at present.
BROKER SAYS:
1
0
0
SIGMAROC
(SRC:AIM) 38.8p
Loss to date: 10%
Original entry point:
Buy at 43.25p, 26 Oct 2017
zKh͛Z'K/E'ƚŽŶĞĞĚĂďŝƚŵŽƌĞƉĂƟĞŶĐĞ
ǁŝƚŚŚĞĂǀLJĐŽŶƐƚƌƵĐƟŽŶƉƌŽĚƵĐƚƐĮƌŵSigmaRoc
(SRC:AIM)͘tĞƚŚŝŶŬŝƚŝƐǁŽƌƚŚƐƟĐŬŝŶŐǁŝƚŚ
ƚŚĞƐŚĂƌĞƐ͘
&ƵůůƌĞƐƵůƚƐŽŶϮϭDĂLJŚŝŐŚůŝŐŚƚĞĚƚŚĞĐŽŵƉĂŶLJ͛Ɛ
ĂďŝůŝƚLJƚŽƐƋƵĞĞnjĞŵŽƌĞŽƵƚŽĨƚŚĞĂƐƐĞƚƐŝƚŚĂƐ
ĂůƌĞĂĚLJĂĐƋƵŝƌĞĚ͘dŚĞŶƵŵďĞƌƐƐŚŽǁƚŚĞZŽŶĞnj
ĂŶĚ^ŝŐŵĂ'ƐLJŽƉĞƌĂƟŽŶƐƐĂǁĐŽŵďŝŶĞĚƐĂůĞƐ
ŝŵƉƌŽǀĞƚŽάϮϳŵ͕ǁŝƚŚĞĂƌŶŝŶŐƐŽĨάϱ͘ϱŵ͘
ZŽŶĞnjŝƐĂŚĂƌĚƌŽĐŬƋƵĂƌƌLJŽƉĞƌĂƚŽƌĂŶĚ
ĐŽŶƐƚƌƵĐƟŽŶŵĂƚĞƌŝĂůƐƉƌŽĚƵĐĞƌďĂƐĞĚŝŶ'ƵĞƌŶƐĞLJ
ĂŶĚ:ĞƌƐĞLJ͘^ŝŐŵĂ'ƐLJŝƐĂďƵůŬƐŚŝƉƉŝŶŐŽƵƞŝƚ͘
tŝƚŚĂůĂƌŐĞŶƵŵďĞƌŽĨŝŶĚĞƉĞŶĚĞŶƚ
ŽƉĞƌĂƚŽƌƐƐƟůůĂĐƟǀĞŝŶŝƚƐŵĂƌŬĞƚ͕ĐŚŝĞĨĞdžĞĐƵƟǀĞ
DĂdžsĞƌŵŽƌŬĞŶƚĞůůƐSharesƚŚĞƌĞĂƌĞƉůĞŶƚLJŽĨ
DΘŽƉƉŽƌƚƵŶŝƟĞƐĂǀĂŝůĂďůĞƚŽƚŚĞĐŽŵƉĂŶLJ͘
tŝƚŚĨƵůůŝŶƚĞŐƌĂƟŽŶŽĨƚŚĞďƵƐŝŶĞƐƐĞƐŝƚŚĂƐ
ĂůƌĞĂĚLJĂĐƋƵŝƌĞĚĞdžƉĞĐƚĞĚŝŶƚŚĞĮƌƐƚŚĂůĨŽĨϮϬϭϴ
ƚŚĞĐŽŵƉĂŶLJĐĂŶƚƵƌŶƚŽĨƵƌƚŚĞƌĚĞĂůƐ͘
/ŶǀĞƐƚŵĞŶƚďĂŶŬĞƌĞŶďĞƌŐĐŽŵŵĞŶƚƐ͚͗tŝƚŚ
ĞƐƟŵĂƚĞĚŐƌŽƵƉŐĞĂƌŝŶŐĂƚϭ͘ϭdžϮϬϭϴŶĞƚĚĞďƚͬ
/d͕ǁĞďĞůŝĞǀĞƚŚĞďĂůĂŶĐĞƐŚĞĞƚŽīĞƌƐĐĂƉĂĐŝƚLJ
ĨŽƌĨƵƌƚŚĞƌǀĂůƵĞͲĐƌĞĂƟŶŐƚƌĂŶƐĂĐƟŽŶƐ͖ǁŚŝůĞ
ŵĂŶĂŐĞŵĞŶƚŝƐƉůĞĂƐĞĚǁŝƚŚƚŚĞƉƌŽŐƌĞƐƐŵĂĚĞ
ƚŽǁĂƌĚƐĚĞůŝǀĞƌŝŶŐŽŶƚŚĞƉŝƉĞůŝŶĞƚŚŝƐLJĞĂƌ͛͘
50
SIGMAROC
FTSE ALL SHARE
Source: Thomson Reuters Datastream
FUTURE
(FUTR) 520p
48
46
44
42
40
38
36
Rebased to first
2017
2018
SHARES SAYS: È
We remain fans despite the indifferent performance
of the shares. (TS)
BROKER SAYS:
1
0
0
24 May 2018 | SHARES |
17
ARTIFICIAL
INTELLIGENCE
OVER-HYPED
OR FUTURE
MEGATREND?
A
ƌƟĮĐŝĂůŝŶƚĞůůŝŐĞŶĐĞ;/ͿŚĂƐďĞĞŶĂƌŽƵŶĚ
ĨŽƌĚĞĐĂĚĞƐďƵƚŝƚŚĂƐŽŶůLJƌĞĐĞŶƚůLJ
ĞdžƉůŽĚĞĚŝŶƚŽƚŚĞĞǀĞƌLJĚĂLJǀĞƌŶĂĐƵůĂƌ͘
ƚĂƐŝŵƉůŝƐƟĐůĞǀĞů/ŝƐĂƐĞƚŽĨ
ĐŽŵƉƵƚĞƌƐĐŝĞŶĐĞƚĞĐŚŶŝƋƵĞƐƚŚĂƚŐŝǀĞ
LJŽƵƌƐŽŌǁĂƌĞƐƵƉĞƌƉŽǁĞƌƐ͘
/ŚĂƐƚŚĞĐĂƉĂĐŝƚLJƚŽĐƌĞĂƚĞŶĞǁ
ďƵƐŝŶĞƐƐĞƐĂŶĚŽƉƉŽƌƚƵŶŝƟĞƐ͕ŵĂŬĞŽƵƌůŝǀĞƐ
ƐĂĨĞƌ͕ĂŶĚĂĚĚŵĂƐƐŝǀĞŐƌŽǁƚŚƚŽƚŚĞŐůŽďĂů
18
| SHARES | 24 May 2018
ĞĐŽŶŽŵLJ͘/ƚŵĂLJĂůƐŽŚŽůĚƚŚĞƚŚƌĞĂƚŽĨ
ĚĞƐƚƌŽLJŝŶŐũŽďƐ͕ƐƉƌĞĂĚŝŶŐĐŽŵƉƵƚĞƌǀŝƌƵƐĞƐĂŶĚ
ǁŽƌƐĞ͘
,ŽǁƚŽĐŚĂŶŶĞů/ƚŽĚĞůŝǀĞƌƚŚĞĨŽƌŵĞƌĂŶĚ
ĂǀŽŝĚƚŚĞůĂƩĞƌŝƐĂŚŽƚƚŽƉŝĐŽĨĚŝƐĐƵƐƐŝŽŶĂŵŽŶŐ
ŚĞĂĚƐŽĨƐƚĂƚĞ͕ƚĞĐŚŶŽůŽŐLJĚĞǀĞůŽƉĞƌƐĂŶĚŽƚŚĞƌƐ͘
ŶĚŚŽǁƚŽƌĞĂůŝƐĞĂŶĚĂĐĐĞƐƐƚŚŝƐ
ƉŽƚĞŶƟĂůůLJǀĂƐƚŶĞǁƐŽƵƌĐĞŽĨƉƌŽĮƚƚĞŶĚƐƚŽ
ďĞǁŚĞƌĞƚŚĞĐŽŶǀĞƌƐĂƟŽŶƐŚĞĂĚŝŶĐŽŵƉĂŶLJ
ďŽĂƌĚƌŽŽŵƐ͕ĂƚĨƵŶĚŵĂŶĂŐĞŵĞŶƚŵĞĞƟŶŐƐĂŶĚ
ĂŵŽŶŐŽƌĚŝŶĂƌLJƐĂǀĞƌƐĂŶĚŝŶǀĞƐƚŽƌƐ͘
tŚŝůĞƐĐĞƉƟĐƐŵĂLJĂĐĐƵƐĞ/ŽĨďĞŝŶŐŶŽ
$39
billion
ƐƟŵĂƚĞĚĐŽŵƉĂŶLJ/ŝŶǀĞƐƚŵĞŶƚ
ŵŽƌĞƚŚĂŶƚŚĞůĂƚĞƐƚŝŶǀĞƐƚŵĞŶƚĨĂĚ͕ĞdžƉĞƌƚƐ
ƵŶĞƋƵŝǀŽĐĂůůLJƐĞĞ/ĂƐĂŐĞŶƵŝŶĞůŽŶŐͲƌƵŶ
ǁĞĂůƚŚĐƌĞĂƟŽŶŽƉƉŽƌƚƵŶŝƚLJǁŝƚŚƚŚĞƐĐŽƉĞƚŽ
ĞŶƌŝĐŚĂůůŽĨŽƵƌůŝǀĞƐŝŶŵƵůƟƉůĞǁĂLJƐ;ĂŶĚĞǀĞŶ
ŝŶǁĂLJƐǁĞŚĂǀĞŶ͛ƚĞǀĞŶƚŚŽƵŐŚƚŽĨLJĞƚͿ͘
<ĞĞƉƌĞĂĚŝŶŐƚŽůĞĂƌŶŵŽƌĞĂďŽƵƚ/ĂŶĚƚŚĞ
ĨƵŶĚƐĂŶĚŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐƚŽƉůĂLJƚŚĞƚŚĞŵĞ͘
WHY
ALL
THE
EXCITEMENT?
͚dŚĞĚŝƐƌƵƉƟŽŶŽĨĂŶĞǀĞƌͲŐƌĞĂƚĞƌŶƵŵďĞƌ
ŽĨŝŶĚƵƐƚƌLJǀĞƌƟĐĂůƐŚĂƐĂƌŐƵĂďůLJŶĞǀĞƌďĞĞŶ
ŚŝŐŚĞƌĚƵĞƚŽƚŚĞŐƌŽǁŝŶŐŝŶŇƵĞŶĐĞŽĨďŽƚŚ
ĐůŽƵĚĐŽŵƉƵƟŶŐĂŶĚƚŚĞƌŝƐĞŽƌĞĂƌůLJĂĚŽƉƟŽŶ
ŽĨĂƌƟĮĐŝĂůŝŶƚĞůůŝŐĞŶĐĞ͕͛ƐĂLJƐWŽůĂƌĂƉŝƚĂůĨƵŶĚ
ŵĂŶĂŐĞƌĞŶZŽŐŽī͘
͚ǀĞƌLJŝŶĚƵƐƚƌLJƚŚĂƚŵĂŶŬŝŶĚĐƌĞĂƚĞĚǁŝůůďĞ
ƌĞĚĞĮŶĞĚ͕͛ŝƐŚŽǁDĂƐĂLJŽƐŚŝ^ŽŶ͕ƚŚĞKŽĨ
:ĂƉĂŶ͛Ɛ^ŽŌďĂŶŬ͕ĚĞƐĐƌŝďĞƐ/͘
͚:ƵƐƚĂƐϭϬϬLJĞĂƌƐĂŐŽĞůĞĐƚƌŝĐŝƚLJƚƌĂŶƐĨŽƌŵĞĚ
ŝŶĚƵƐƚƌLJĂŌĞƌŝŶĚƵƐƚƌLJ͕/ǁŝůůŶŽǁĚŽƚŚĞƐĂŵĞ͕͛
ďĞůŝĞǀĞƐŶĚƌĞǁEŐ͕ĂŶ/ŶĞƚǁŽƌŬƉŝŽŶĞĞƌ
ĂŶĚƚŚĞĨŽƌŵĞƌůĞĂĚĞƌŽĨƚŚĞƚĞĐŚŶŽůŽŐLJ͛Ɛ
ĚĞǀĞůŽƉŵĞŶƚĂƚďŽƚŚ'ŽŽŐůĞĂŶĚĂŝĚƵ͕ƚŚĞ
ŚŝŶĞƐĞŝŶƚĞƌŶĞƚďƵƐŝŶĞƐƐ͘
EŐŝƐƉƵƫŶŐŚŝƐŵŽŶĞLJǁŚĞƌĞŚŝƐŵŽƵƚŚ
ŝƐ͕ĂŶĚĞĂƌůŝĞƌƚŚŝƐLJĞĂƌƵŶǀĞŝůĞĚƚŚĞh^ͲďĂƐĞĚ
/&ƵŶĚ͕ƌĂŝƐŝŶŐΨϭϳϱŵƚŽŝŶǀĞƐƚŝŶŶĞǁ
/ƐƚĂƌƚͲƵƉƐ͘
WHAT
IS
AI?
/ŝƐƚŚĞĐŽŶĐĞƉƚŽĨŵĂĐŚŝŶĞƐĂĐĐŽŵƉůŝƐŚŝŶŐ
ŝŶϮϬϭϲ͕ŵŽƐƚŽĨŝƚďLJƚĞĐŚŐŝĂŶƚƐ
ƐƵĐŚĂƐ'ŽŽŐůĞĂŶĚĂŝĚƵ
Source: McKinsey & Co
ĐĂƉĂĐŝƚLJƚŽƉĞƌĨŽƌŵĨƵŶĐƟŽŶƐƐƵĐŚĂƐůŽŐŝĐ͕
ƌĞĂƐŽŶŝŶŐ͕ƉůĂŶŶŝŶŐ͕ůĞĂƌŶŝŶŐĂŶĚƉĞƌĐĞƉƟŽŶ͖
ĂůůǀĞƌLJŚƵŵĂŶƋƵĂůŝƟĞƐ͘
KƌĂƐďŽĸŶƐĂƚ/ŵƉĞƌŝĂůŽůůĞŐĞ>ŽŶĚŽŶ
ƉƵƚŝƚ͕͚/ŶŽǁĞŶĐŽŵƉĂƐƐĞƐƚŚĞǁŚŽůĞ
ĐŽŶĐĞƉƚƵĂůŝƐĂƟŽŶŽĨĂŵĂĐŚŝŶĞƚŚĂƚŝƐŝŶƚĞůůŝŐĞŶƚ
ŝŶƚĞƌŵƐŽĨďŽƚŚŽƉĞƌĂƟŽŶĂůĂŶĚƐŽĐŝĂů
ĐŽŶƐĞƋƵĞŶĐĞƐ͛͘
WĞŽƉůĞŚĂǀĞƌĞůŝĞĚŽŶŵĂĐŚŝŶĞƐƚŽŝŶĐƌĞĂƐŝŶŐůLJ
“
Just as 100 years ago
electricity transformed
industry after industry,
AI will now do the same
ƚĂƐŬƐǁŚŝĐŚŚĂǀĞŚŝƐƚŽƌŝĐĂůůLJƌĞƋƵŝƌĞĚŚƵŵĂŶ
ŝŶƚĞůůĞĐƚƵĂůŝŶƉƵƚ͘/ƚŝƐƚŚĞĐŽŵƉƵƚĞƌͲƉŽǁĞƌĞĚ
How AI thinks
like a human
ŽŶƐŝĚĞƌĂďĂƐŝĐ/ƐLJƐƚĞŵ͘
>Ğƚ͛ƐƐĂLJŝƚŚĂƐƚŚƌĞĞ
ůĞǀĞƌƐƚŽƉƵůů;ŶĞƵƌŽŶƐͿƚŽ
ĐŽŵĞƵƉǁŝƚŚĂLJĞƐŽƌŶŽ
ĂŶƐǁĞƌʹŽƌŝŶďŝŶĂƌLJͲƐƉĞĂŬ͕
ĂϭŽƌϬ͘dŚĞ/ƐLJƐƚĞŵǁĂŶƚƐ
ƚŽĚĞƚĞƌŵŝŶĞŝĨĂƉŚŽƚŽŝƐĂŶ
ŝŵĂŐĞŽĨĂŶĂƉƉůĞŽƌĂ
ďĂŶĂŶĂ͘/ƚŵŝŐŚƚĞƐƚĂďůŝƐŚ
ĐĞƌƚĂŝŶĨĂĐƚƐ͗
”
Andrew Ng, AI expert
and founder of Google Brain
ϭͿ/ƐƚŚĞŽďũĞĐƚŝŶƚŚĞ
ƉŝĐƚƵƌĞƌŽƵŶĚ͍
ϮͿ/ƐƚŚĞŽďũĞĐƚŝŶƚŚĞ
ƉŝĐƚƵƌĞLJĞůůŽǁ͍
ϯͿŽĞƐƚŚĞŽďũĞĐƚŝŶ
ƚŚĞƉŝĐƚƵƌĞŚĂǀĞĂ
ƐĞƉĂƌĂƚĞƐƚĞŵ͍
/ĨƚŚĞƉŚŽƚŽǁĂƐŽĨĂďĂŶĂŶĂ
ƚŚĞ/ƐLJƐƚĞŵǁŽƵůĚƌĞƐƉŽŶĚ
ǁŝƚŚŶŽ͕LJĞƐ͕ŶŽ͘/ĨƚŚĞƉŚŽƚŽŝƐ
ĂŶĂƉƉůĞŝƚǁŽƵůĚĂŶƐǁĞƌLJĞƐ͕
ŶŽ͕LJĞƐ͘/ŶƚŚĞďŝŶĂƌLJůĂŶŐƵĂŐĞ
ŽĨĚŝŐŝƚĂůĐŽŵŵƵŶŝĐĂƟŽŶƐƚŚŝƐ
ǁŽƵůĚƚƌĂŶƐůĂƚĞĂƐϬϭϬĨŽƌƚŚĞ
ďĂŶĂŶĂ͕ĂŶĚϭϬϭĨŽƌĂŶĂƉƉůĞ͘
/ƐLJƐƚĞŵƐĐĂŶďĞ
ĞdžƉŽŶĞŶƟĂůůLJŵŽƌĞĐŽŵƉůĞdž
ƚŚĂŶƚŚŝƐĞdžĂŵƉůĞ͘džƚƌĂƉŽůĂƚĞ
ƚŚŝƐĐŽŶĐĞƉƚĂĐƌŽƐƐƚŚŽƵƐĂŶĚƐ͕
ŵŝůůŝŽŶƐŽƌďŝůůŝŽŶƐŽĨLJĞƐͬŶŽ
ƋƵĞƐƟŽŶƐĂŶĚLJŽƵŚĂǀĞƚŚĞ
ďĂƐŝƐĨŽƌĂƐƵƉĞƌƐŵĂƌƚ/ƐLJƐƚĞŵ
ĐĂƉĂďůĞŽĨůĞĂƌŶŝŶŐƚŽƉƌĞĚŝĐƚ
ĐƵƐƚŽŵĞƌƉƌĞĨĞƌĞŶĐĞƐ͕ĚĞƚĞĐƚ
ĨƌĂƵĚ͕ĮŐŚƚĐŽŵƉƵƚĞƌǀŝƌƵƐĞƐ͕
ĐŽŶĚƵĐƚůŝĨĞͲƐĂǀŝŶŐĚŝĂŐŶŽƐĞƐ͕
ĂŶĚƌĞĐŽŐŶŝƐĞŚĂŶĚǁƌŝƟŶŐ͘
24 May 2018 | SHARES |
19
ĚŽŵƵƐĐůĞǁŽƌŬƐŝŶĐĞƚŚĞŝŶĚƵƐƚƌŝĂůƌĞǀŽůƵƟŽŶ
ĂůůŽǁĞĚƐƚĞĂŵĂŶĚĞůĞĐƚƌŝĐŝƚLJƚŽƌĞƉůĂĐĞŽdžĞŶ͕
ŚŽƌƐĞĂŶĚŽƵƌŽǁŶƉŚLJƐŝĐĂůƐƚƌĞŶŐƚŚ͘
ƵƚƚŚĞĐŽŵŝŶŐƚƌĂŶƐĨŽƌŵĂƟŽŶ͕ƐŽŵĞƟŵĞƐ
ĐĂůůĞĚƚŚĞĚŝŐŝƚĂůƌĞǀŽůƵƟŽŶ͕ǁŝůůƐĞĞĐŽŵƉƵƚĞƌ
ĂůŐŽƌŝƚŚŵƐƚĂŬĞƚŚĞƐƚƌĂŝŶĨŽƌŵƵĐŚŽĨƚŚĞďƌĂŝŶ
ǁŽƌŬƚŽŽ͘
AIŐŽŽĚĞdžĂŵƉůĞŽĨ/ŝƐƚŚĞĚĞĨĞĂƚĂƚĐŚĞƐƐŽĨ
IN ACTION TODAY
ŐƌĂŶĚŵĂƐƚĞƌ'ĂƌƌLJ<ĂƐƉĂƌŽǀďLJ/D͛ƐDeep
Blue ƐƵƉĞƌĐŽŵƉƵƚĞƌŝŶϭϵϵϳ͘DŽƌĞĐƵƌƌĞŶƚ
ƵƐĞƐĨŽƌ/ĐŽŵĞŝŶĞŵĞƌŐŝŶŐĂƉƉůŝĐĂƟŽŶƐƐƵĐŚ
ĂƐǁŚŝnjnjŝŶŐĨƌŽŵƉůĂĐĞƚŽƉůĂĐĞŝŶƐĞůĨͲĚƌŝǀŝŶŐ
ĐĂƌƐŽƌƋƵŝĐŬĚŝĂŐŶŽƐŝƐĂŶĚƉƌĞƐĐƌŝƉƟŽŶƐĨƌŽŵ
ĂƵƚŽŵĂƚĞĚ'WƐ͘
ZĞĐĞŶƚƐƚƵĚŝĞƐĞƐƟŵĂƚĞƚŚĂƚƚǁŽͲƚŚŝƌĚƐŽĨ
ƵƐŚĂǀĞůŝƩůĞŽƌŶŽŝĚĞĂƚŚĂƚǁĞĂƌĞƵƐŝŶŐ/
ƚĞĐŚŶŽůŽŐLJĞǀĞƌLJĚĂLJ͘/ŝƐĨĂƌŵŽƌĞƵďŝƋƵŝƚŽƵƐ
ƚŚĂŶLJŽƵŵĂLJĂƉƉƌĞĐŝĂƚĞ͘
,ĂǀĞLJŽƵďŽƵŐŚƚĂŶŝƚĞŵƌĞĐŽŵŵĞŶĚĞĚ
ďLJŵĂnjŽŶůĂƚĞůLJ͍>ŽŐŐĞĚŽŶƚŽ&ĂĐĞŬŽƌ
͚'ŽŽŐůĞĚ͛ƐŽŵĞƚŚŝŶŐŽŶƚŚĞŝŶƚĞƌŶĞƚ͍dŚĞŶ
LJŽƵ͛ǀĞƵƐĞĚ/͘
/ƚŝƐƚŚŝƐĞŵĞƌŐŝŶŐƚĞĐŚŶŽůŽŐLJƚŚĂƚĞŶƐƵƌĞƐƚŚĞ
ƉƌŽĚƵĐƚƐ͕ƐĞƌǀŝĐĞƐĂŶĚĂĚǀĞƌƚƐƉƌĞƐĞŶƚĞĚƚŽLJŽƵ
ĂƌĞĂƐƌĞůĞǀĂŶƚĂƐƉŽƐƐŝďůĞ͘dŚĞĂůŐŽƌŝƚŚŵƵƐĞĚƚŽ
ƐĞƌǀĞƵƉ'ŽŽŐůĞƐĞĂƌĐŚƌĞƐƵůƚƐĂůƐŽůĞĂƌŶƐǁŚŝĐŚ
ƉĂŐĞƐĂƌĞƚŚĞŵŽƐƚƌĞůĞǀĂŶƚƚŽƵƐĞƌƐƵƐŝŶŐ/͘
/ƚ͛ƐƐŝŵŝůĂƌ/ďĞŚŝŶĚEĞƞůŝdžƌĞĐŽŵŵĞŶĚĂƟŽŶƐ
ŽƌŽŶĞƐƚŚĂƚĂƵƚŽŵĂƟĐĂůůLJƐƵŐŐĞƐƚƐǁŚŽƚŽƚĂŐ
ǁŚĞŶLJŽƵƉŽƐƚĂƉŚŽƚŽŽŶƐŽĐŝĂůŵĞĚŝĂƐŝƚĞƐ͘
^ŵĂƌƚƉŚŽŶĞĂƐƐŝƐƚĂŶƚƐůŝŬĞƉƉůĞ͛Ɛ^ŝƌŝ͕'ŽŽŐůĞ
ƐƐŝƐƚĂŶƚĂŶĚŽƌƚĂŶĂďLJDŝĐƌŽƐŽŌĂƌĞĂůƐŽ
ƉŽǁĞƌĞĚďLJ/͘
“
Every industry that mankind
JYLH[LK^PSSILYLKLÄULK
”
Masayoshi Son, CEO Softbank
20
| SHARES | 24 May 2018
1956
IBM’s Deep Blue
computer beats
Russian chess
grandmaster
Garry Kasparov
2011
Google’s AlphaGo
computer program
beats board game
Go grandmaster
Lee Sedol
Artificial intelligence
is coined as a term by
John McCarthy of
Dartmouth Workshop
and marks its
beginning as an
academic discipline
1997
IBM’s Watson
computer system
beats human players
on US game show
Jeopardy
2016
ESCALATION OF AI ACCESS
/ŝƐĂŶŝŶĐƌĞĂƐŝŶŐůLJďƵƐLJŝŶǀĞƐƚŵĞŶƚƐƉĂĐĞĂŶĚ
ƚŚĞƌĞĂƌĞŵŽƌĞǁĂLJƐĨŽƌŽƌĚŝŶĂƌLJŝŶǀĞƐƚŽƌƐƚŽŐĞƚ
ŝŶǀŽůǀĞĚƚŚĂŶĞǀĞƌďĞĨŽƌĞ͘
&ŽƌĞdžĂŵƉůĞ͕ŝƚ͛ƐǁŽƌƚŚůŽŽŬŝŶŐĂƚƚŚĞǁŽƌůĚŽĨ
ƌŽďŽƟĐƐĞǀĞŶƚŚŽƵŐŚŝƚŝƐƐůŝŐŚƚůLJĚŝīĞƌĞŶƚƚŽ/͘
ZŽďŽƟĐƐŝƐĂďƌĂŶĐŚŽĨƚĞĐŚŶŽůŽŐLJǁŚŝĐŚĚĞĂůƐ
ǁŝƚŚƌŽďŽƚƐʹďƵƚ/ĐĂŶĨĞĂƚƵƌĞŝĨƚŚĞƌŽďŽƚƐĂƌĞ
ƌĞƋƵŝƌĞĚƚŽ͚ƚŚŝŶŬ͛ĂŶĚŵĂŬĞĚĞĐŝƐŝŽŶƐ͘
dŚĞZKK'ůŽďĂůZŽďŽƟĐƐΘƵƚŽŵĂƟŽŶ
/ŶĚĞdžŝƐƚŚĞĮƌƐƚďĞŶĐŚŵĂƌŬŝŶĚĞdžƚŽƚƌĂĐŬƚŚĞ
ŐůŽďĂůƌŽďŽƟĐƐĂŶĚĂƵƚŽŵĂƟŽŶŵĂƌŬĞƚ;ŝŶĐůƵĚŝŶŐ
/ĐŽŵƉĂŶŝĞƐͿ͘/ƚƐĐŽŶƐƟƚƵĞŶƚƐŚĂǀĞĞŶũŽLJĞĚ
ƐŽĂƌŝŶŐĚĞŵĂŶĚĨŽƌƚŚŝŶŐƐůŝŬĞϯƉƌŝŶƟŶŐ͕
ƚƌĂĐŬĂŶĚƚƌĂĐĞĚŝƐƚƌŝďƵƟŽŶƚĞĐŚŶŽůŽŐŝĞƐĂŶĚ
ĂƵƚŽŵĂƚĞĚƐƵƌŐĞƌLJƐLJƐƚĞŵƐ͘
ZŝĐŚĂƌĚ>ŝŐŚƚďŽƵŶĚ͕ŚĞĂĚŽĨŝŶĚĞdžƉƌŽǀŝĚĞƌ
ZKK'ůŽďĂů͛ƐƵƌŽƉĞĂŶĚƐŝĂŽƉĞƌĂƟŽŶƐ͕ƐĂLJƐ
ϴϴйŽĨƚŚĞŝŶĚĞdžŵĞŵďĞƌƐďĞĂƚĐŽŶƐĞŶƐƵƐƐĂůĞƐ
ĞƐƟŵĂƚĞƐŝŶƚŚĞůĂƐƚƋƵĂƌƚĞƌŽĨϮϬϭϳ͘
dŚĞZKKŝŶĚĞdžǁĂƐƐĞƚƵƉĨŽƌƚŚĞd&ŵĂƌŬĞƚ
ĂŶĚŝƐƚŚĞďĂĐŬďŽŶĞďĞŚŝŶĚZKK'ůŽďĂů
ZŽďŽƟĐƐĂŶĚƵƚŽŵĂƟŽŶd&;ZK'Ϳ͕ŽŶĞŽĨ
Shares͛ƌƵŶŶŝŶŐGreat Ideas͘
FUNDS
PROVIDING EXPOSURE TO AI
dƌĂĚŝƟŽŶĂůĨƵŶĚƐĂƌĞĂůƐŽďĞŝŶŐĞƐƚĂďůŝƐŚĞĚ
ƚŽĐĂƉƚƵƌĞ/ĂŶĚŽƚŚĞƌƚĞĐŚŶŽůŽŐLJͲƐƉĞĐŝĮĐ
ƚƌĞŶĚƐ͘&ŽƌĞdžĂŵƉůĞ͕WŽůĂƌĂƉŝƚĂůƵƚŽŵĂƟŽŶ
ΘƌƟĮĐŝĂů/ŶƚĞůůŝŐĞŶĐĞ&ƵŶĚ;/ϬϬ&Ϭ'>ϱϰϯͿ
ůĂƵŶĐŚĞĚůĂƐƚLJĞĂƌǁŝƚŚ/ŽŶĞŽĨƚŚƌĞĞĐŽƌĞ
ŝŶǀĞƐƚŵĞŶƚƚŚĞŵĞƐĂƚŝƚƐŚĞĂƌƚ;ŝŶĚƵƐƚƌŝĂů
ĂƵƚŽŵĂƟŽŶĂŶĚƌŽďŽƟĐƐďĞŝŶŐƚŚĞŽƚŚĞƌƚǁŽͿ͘
^ŵŝƚŚΘtŝůůŝĂŵƐŽŶ͕ƚŚĞŝŶǀĞƐƚŵĞŶƚ
ŵĂŶĂŐĞŵĞŶƚĮƌŵ͕ŚĂƐĞǀĞŶƐĞƚƵƉĂĚĞĚŝĐĂƚĞĚ
/ĨƵŶĚĐĂůůĞĚ^ŵŝƚŚΘtŝůůŝĂŵƐŽŶƌƟĮĐŝĂů
/ŶƚĞůůŝŐĞŶĐĞ&ƵŶĚ;/ϬϬzW&ϮϲϴͿ͘
͚tĞƐĞĞŬƚŽŝŶǀĞƐƚŝŶĐŽŵƉĂŶŝĞƐƚŚĂƚŽīĞƌ
ǁŚĂƚǁĞƌĞŐĂƌĚĂƐƉƵƌŝƚLJŽĨ/ƌĞǀĞŶƵĞ͖
ĐŽŵƉĂŶŝĞƐǁŚŝĐŚĂƌĞĂďůĞƚŽĚĞŵŽŶƐƚƌĂƚĞ
ƌĞǀĞŶƵĞŐƌŽǁƚŚƚŚĂƚŝƐďĞŝŶŐĚƌŝǀĞŶďLJƚŚĞ
ĚĞǀĞůŽƉŵĞŶƚŽƌĂƉƉůŝĐĂƟŽŶŽĨ/͕͛ƐĂLJĨƵŶĚ
ŵĂŶĂŐĞƌƐŚƌŝƐ&ŽƌĚĂŶĚdŝŵĂLJ͘
WŝĐƚĞƚZŽďŽƟĐƐ;>hϭϯϭϲϱϰϵϮϴϯͿ͕
y&ƌĂŵůŝŶŐƚŽŶ'ůŽďĂůdĞĐŚŶŽůŽŐLJ
;'ϬϬϬϲϱϵϴϵϵϴͿ͕WŽůĂƌĂƉŝƚĂů'ůŽďĂůdĞĐŚŶŽůŽŐLJ
;/ϬϬϰϮtϰ:ϴϯͿĂŶĚEĞƉƚƵŶĞ'ůŽďĂůdĞĐŚŶŽůŽŐLJ
;'ϬϬzyϱEϳϵͿĂƌĞŽƚŚĞƌĨƵŶĚŽƉƟŽŶƐǁŝƚŚĂ
ĮƌŵĞLJĞŽŶ/ĚĞǀĞůŽƉŵĞŶƚĂŶĚƉŽƚĞŶƟĂůƌĞƚƵƌŶƐ͘
ŵŽŶŐƚŚĞŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚĐŽŵŵƵŶŝƚLJ͕
$15.7
trillion
dŚĞĂŵŽƵŶƚ/ǁŝůůĂĚĚƚŽ
ƚŚĞǁŽƌůĚĞĐŽŶŽŵLJďLJϮϬϯϬ
Source: PwC
,Kt/Kh>,E'sZ/Kh^/Eh^dZ/^
ƵƚŽŵĂƟŽŶ
ĂŶŬŝŶŐ
ĚƵĐĂƟŽŶ
ŶƚĞƌƚĂŝŶŵĞŶƚͬ
DĞĚŝĂ
'ŽǀĞƌŶŵĞŶƚ
,ĞĂůƚŚĐĂƌĞ
EĂƚƵƌĂůZĞƐŽƵƌĐĞƐ
ZĞƚĂŝů
dĞĐŚŶŽůŽŐLJ
^ĞůĨͲĚƌŝǀŝŶŐĐĂƌƐ͕ĚǀĂŶĐĞĚƌŝǀĞƌ
ƐƐŝƐƚĂŶĐĞ^LJƐƚĞŵƐ;^Ϳ͕
ĨĂĐƚŽƌLJŽĨƚŚĞĨƵƚƵƌĞ
ƵƚŽŵĂƚĞĚƚƌĂĚŝŶŐ͕ĨƌĂƵĚ
ĚĞƚĞĐƟŽŶ͕ŶĂƚƵƌĂůůĂŶŐƵĂŐĞ
ƉƌŽĐĞƐƐŝŶŐ͕ƌŽďŽͲĂĚǀŝƐŽƌƐ
ĚĂƉƟǀĞůĞĂƌŶŝŶŐƉƌŽŐƌĂŵŵĞƐ͕
ƐŬŝůůƵƉŐƌĂĚĞƚĞĂĐŚŝŶŐ
ĚǀĞƌƟƐŝŶŐ͕ŝŶƚĞƌĂĐƟǀĞ
ŐĂŵŝŶŐ͕ǀŝĚĞŽĂŶĂůLJƟĐƐ͕
ǀŽŝĐĞͲďĂƐĞĚĐŽŵŵĞƌĐĞ
^ŵĂƌƚƐƵƌǀĞŝůůĂŶĐĞ͕
ƚŚƌĞĂƚĚĞƚĞĐƟŽŶ͕
ƚƌĂŶƐƉŽƌƚƐŝŵƵůĂƟŽŶƐ
ŝŐŝƚĂůŚĞĂůƚŚ͕ĚŝĂŐŶŽƐƟĐƐ͕ĚƌƵŐ
ĚŝƐĐŽǀĞƌLJ͕ƉƌĞĚŝĐƟǀĞĂŶĂůLJƟĐƐ
ŐƚĞĐŚ͕ĂƋƵĂĐƵůƚƵƌĞ͕ďŝŽƐĐŝĞŶĐĞ͕
ƐĞĞĚŐĞŶĞƟĐƐ
ƵƐƚŽŵĞƌĂŶĂůLJƟĐƐ͕ƐƵƉƉůLJĐŚĂŝŶ
ŵĂŶĂŐĞŵĞŶƚ͕ƐĞŶƐŽƌŝŶƚĞůůŝŐĞŶĐĞ
ZͬsZ͕ĐLJďĞƌƐĞĐƵƌŝƚLJ͕
ĐŚĂƚďŽƚƐ͕ĞŶƚĞƌƉƌŝƐĞƐŽŌǁĂƌĞ͕
ŝŶĚƵƐƚƌŝĂůƌŽďŽƚƐ
^ŽƵƌĐĞ͗>'/D
“
No sector or business
is in any way immune
from the impact of AI
”
Gerard Verweij,
PwC global data & analytics leader
24 May 2018 | SHARES |
21
ǁĞ͛ĚŚŝŐŚůŝŐŚƚƚŚĞƐĞƚŚƌĞĞƉƌŽĚƵĐƚƐĂƐŚĂǀŝŶŐ
/ͲƌĞůĂƚĞĚŝŶǀĞƐƚŵĞŶƚƐ͗ůůŝĂŶnjdĞĐŚŶŽůŽŐLJdƌƵƐƚ
;ddͿ͕WŽůĂƌĂƉŝƚĂůdĞĐŚŶŽůŽŐLJdƌƵƐƚ;WdͿĂŶĚ
^ĐŽƫƐŚDŽƌƚŐĂŐĞ/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ;^DdͿ͘
COMPANIES
BEHIND
THE
AI
REALITY
tŚŝůĞƚŚĞƌĞŵĂLJďĞĂůŽƚŽĨŚLJƉĞĂƌŽƵŶĚƚŚĞƚŽƉŝĐ
ƌŝŐŚƚŶŽǁ͕͚ƚŚĞƌĞĂƌĞĞŶŽƵŐŚƌĞĂůůŝĨĞĞdžĂŵƉůĞƐ
ƵŶĚĞƌǁĂLJƚŽŝŶĚŝĐĂƚĞƚŚĂƚ/ǁŝůůďĞĂƐŝŐŶŝĮĐĂŶƚ
ŝŶǀĞƐƚŵĞŶƚƚŚĞŵĞŝŶƚŚĞŶĞdžƚĚĞĐĂĚĞ͕͛ƐĂLJƐEŝĐŬ
,ĂƌƚůĞLJ͕ĐŽͲŚĞĂĚŽĨĂĐƟǀĞĞƋƵŝƟĞƐĂƚ>ĞŐĂůΘ
'ĞŶĞƌĂů/ŶǀĞƐƚŵĞŶƚDĂŶĂŐĞŵĞŶƚ;>'/DͿ͘
KŶĞŽĨƚŚĞĐŚĂůůĞŶŐĞƐĨĂĐŝŶŐŝŶǀĞƐƚŽƌƐĂŶĚ/ŝƐ
ƚŚĂƚƚŚĞƌĞŝƐ͚ůŝƩůĞƌĞĂůǁŽƌůĚĞǀŝĚĞŶĐĞŽĨƐƵĐĐĞƐƐ͕
ĞƐƉĞĐŝĂůůLJŽŶĂĐŽŵŵĞƌĐŝĂůƐĐĂůĞ͕͛ŚĞƌĞŵĂƌŬƐ͘
,ĞďĞůŝĞǀĞƐƚŚĞƌĞĂƌĞƚŚƌĞĞĐƌƵĐŝĂů
ĐŽŵƉŽŶĞŶƚƐƚŚĂƚŵĂŬĞŽƌďƌĞĂŬĂŶLJ/
ĞŶƚĞƌƉƌŝƐĞĨƌŽŵĂĮŶĂŶĐŝĂůƉĞƌƐƉĞĐƟǀĞ͕ƚŚĞ
ƵůƟŵĂƚĞďĂƌŽŵĞƚĞƌŽĨƐƵĐĐĞƐƐĨŽƌŝŶǀĞƐƚŽƌƐ͘
“
The development of
M\SSHY[PÄJPHSPU[LSSPNLUJL
could spell the end
of the human race
”
Stephen Hawking, visionary physicist
ͻdĞĐŚŶŝĐĂůĚĞǀĞůŽƉŵĞŶƚĐĂƉĂďŝůŝƚLJ
ͻĐĐĞƐƐƚŽůĂƌŐĞƐĐĂůĞǀŽůƵŵĞƐŽĨĚĂƚĂ
ĨƌŽŵǁŚŝĐŚ/ĐĂŶůĞĂƌŶ
ͻďŝůŝƚLJƚŽƐƵĐĐĞƐƐĨƵůůLJĚĞƉůŽLJ/ĂƉƉůŝĐĂƟŽŶƐ
ĂƚƐĐĂůĞĂŶĚŬĞĞƉŝŵƉƌŽǀŝŶŐ
,ĂƌƚůĞLJƵƐĞƐƵƌŽƉĞĂŶƚƌĂǀĞůĞĐŽƐLJƐƚĞŵ
ƐŽŌǁĂƌĞƐƵƉƉůŝĞƌŵĂĚĞƵƐĂƐĂŐŽŽĚĞdžĂŵƉůĞ͕
ĂĐŽŵƉĂŶLJ>'/D͛ƐĂĐƟǀĞĨƵŶĚƐŚĂǀĞŽǁŶĞĚ
ĨŽƌƐŽŵĞƟŵĞĂŶĚǁŚŝĐŚŝƐĂůƐŽĂůĂƌŐĞŚŽůĚŝŶŐ
ĨŽƌ&ƵŶĚƐŵŝƚŚƋƵŝƚLJ;'ϬϬϰϭztϳϭͿĂŶĚ
:ƵƉŝƚĞƌƵƌŽƉĞĂŶKƉƉŽƌƚƵŶŝƟĞƐdƌƵƐƚ;:KͿ͘
AJ BELL TO LAUNCH
NEW FUND WITH A
TECH ELEMENT
/ŶǀĞƐƚŵĞŶƚƉůĂƞŽƌŵ:Ğůů
ŝƐůĂƵŶĐŚŝŶŐĂ'ůŽďĂů'ƌŽǁƚŚ
&ƵŶĚĚĞƐŝŐŶĞĚƚŽƚĂŬĞ
ĂĚǀĂŶƚĂŐĞŽĨƚŚĞǁŽƌůĚ͛Ɛ
ĚĞŵŽŐƌĂƉŚŝĐ͕ƚĞĐŚŶŽůŽŐŝĐĂů
ĂŶĚĞĐŽŶŽŵŝĐĐŚĂŶŐĞƐ͘
22
| SHARES | 24 May 2018
dŚĞĨƵŶĚĂŝŵƐƚŽƚĂŬĞ
ĂĚǀĂŶƚĂŐĞŽĨĞdžŝƐƟŶŐĂŶĚ
ĞŵĞƌŐŝŶŐƚƌĞŶĚƐƚŚĂƚǁŝůů
ƉŽǁĞƌŝŵƉƌŽǀĞĚƉƌŽƐƉĞƌŝƚLJ
ĨŽƌĂůĂƌŐĞŶƵŵďĞƌŽĨƉĞŽƉůĞ͕
ƉĂƌƟĐƵůĂƌůLJƚŚĞϲďŶŽƌƐŽůŝǀŝŶŐ
ŝŶĞŵĞƌŐŝŶŐŽƌĚĞǀĞůŽƉŝŶŐ
ĞĐŽŶŽŵŝĞƐ͘
dŚŝƐǁŝůůŝŶĐůƵĚĞĚLJŶĂŵŝĐƐ
ƐƵĐŚĂƐƐŵĂƌƚƉŚŽŶĞĂŶĚ
ĐůŽƵĚĐŽŵƉƵƟŶŐƉƌŽůŝĨĞƌĂƟŽŶ
ƉůƵƐŶĂƐĐĞŶƚŽƉƉŽƌƚƵŶŝƟĞƐ
ŝŶƌŽďŽƟĐƐ͕/͕ŚĞĂůƚŚ
ĂƉƉůŝĐĂƟŽŶƐ͕ƐƉĂĐĞƚƌĂǀĞůĂŶĚ
ŽƚŚĞƌƐ͘
dŚĞĨƵŶĚŚŽƉĞƐƚŽƐƉƌĞĂĚ
ƌŝƐŬďLJŝŶǀĞƐƟŶŐŝŶĂďĂƐŬĞƚŽĨ
ĐŽŵƉĂŶŝĞƐƐĞƚƚŽďĞŶĞĮƚĨƌŽŵ
ƚŚĞĂĨŽƌĞŵĞŶƟŽŶĞĚƚƌĞŶĚƐ͘
ƌŽƵŶĚϴйŽĨƚŚĞĨƵŶĚ
ŝƐůŝŬĞůLJƚŽďĞŝŶǀĞƐƚĞĚŝŶ
ƚĞĐŚŶŽůŽŐLJƐƉĞĐŝĮĐĂƌĞĂƐ͕
ǁŝƚŚƐƵďƐƚĂŶƟĂůĞdžƉŽƐƵƌĞƚŽ
ĚĞǀĞůŽƉĞĚƌĞŐŝŽŶƐŝŶĐůƵĚŝŶŐ
ƵƌŽƉĞ͕EŽƌƚŚŵĞƌŝĐĂ͕ƐŝĂ
ĂŶĚƚŚĞh<͘
TODAY'S
OPPORTUNITIES
ZŝŐŚƚŶŽǁŵŽƐƚĨƵŶĚŵĂŶĂŐĞƌƐǁŽƵůĚƉƌŽďĂďůLJ
ůŽŽŬƚŽƚƌĂĚŝƟŽŶĂůƚĞĐŚŶŽůŽŐLJŶĂŵĞƐƚŽƉůĂLJ
ƚŚĞ/ƚŚĞŵĞ͘&E'ƐƚŽĐŬƐ;&ĂĐĞŬ͕ŵĂnjŽŶ͕
'ŽŽŐůĞ͕EĞƞůŝdžͿǁŽƵůĚďĞĂŐŽŽĚĂƉůĂĐĞƚŽƐƚĂƌƚ
ƉĂƌƚůLJďĞĐĂƵƐĞƚŚĞŝƌǀĂƐƚĐĂƐŚŚŽĂƌĚƐŵĞĂŶƐƚŚĞLJ
ĐĂŶďƵLJƵƉƚŚĞŵŽƐƚŝŶƚĞƌĞƐƟŶŐƐƚĂƌƚͲƵƉƐ͘
/ŵƉĞƌŝĂůŽůůĞŐĞ>ŽŶĚŽŶƌĞƐĞĂƌĐŚƐƵŐŐĞƐƚƐ
ƚŚĞĂĨŽƌĞŵĞŶƟŽŶĞĚ&E'ĐŽŵƉĂŶŝĞƐ͕ƉůƵƐ/D͕
DŝĐƌŽƐŽŌ͕ƉƉůĞĂŶĚzĂŚŽŽ͕ƐƉĞŶƚŵŽƌĞƚŚĂŶ
ΨϱďŶďĞƚǁĞĞŶƚŚĞŵŽŶ/ƐƚĂƌƚͲƵƉƐŝŶϮϬϭϱĂŶĚ
ϮϬϭϲĂůŽŶĞ͘
/ŶϮϬϭϰ'ŽŽŐůĞƐƉĞŶƚΨϱϬϬŵŽŶďƵLJŝŶŐ
what will ai do to the human workforce?
14%
13%
73%
Create more
jobs than
AI eliminates
Have
no
effect
Eliminate
more jobs
than AI creates
Source: Gallup, Northeastern University, Jan 2018
140
+
EƵŵďĞƌŽĨĂĐĂĚĞŵŝĂƐƚĂŶĚĂƌĚƌĞƐĞĂƌĐŚ
ƉĂƉĞƌƐƉƌŽĚƵĐĞĚďLJĞĞƉDŝŶĚ/
ƐŝŶĐĞϮϬϭϮ͕ŝŶĐůƵĚŝŶŐĨŽƵƌƉƵďůŝƐŚĞĚŝŶ
ƐĐŝĞŶƟĮĐũŽƵƌŶĂůEĂƚƵƌĞ
AI technology spending worldwide
30
25
20
15
10
5
0
28.96
$bn
19.28
0.45
2016
2.35
2017
6.03
2018
11.45
2019
2020
Source: Gartner, 2016
͚ŵĂĚĞƵƐƉƌŽĐĞƐƐĞĚϱϵϱŵŬŝŶŐƐŝŶ
ϮϬϭϳŝŶǀŽůǀŝŶŐϭ͘ϯďŶƉĂƐƐĞŶŐĞƌƐ͕͛ƐĂLJƐ,ĂƌƚůĞLJ͘
dŚĂƚŝŶǀŽůǀĞƐũƵŐŐůŝŶŐƚŚŽƵƐĂŶĚƐŽĨůŝǀĞƌŽƵƚĞ
ĂŶĚĨĂƌĞĐŽŵďŝŶĂƟŽŶƐ͖ǀŽůƵŵĞƐŽĨĚĂƚĂŝƚ
ǁŽƵůĚďĞƐŝŵƉůLJŝŵƉŽƐƐŝďůĞĨŽƌĂŶĂƌŵLJŽĨ
ŚƵŵĂŶƐƚŽƉƌŽĐĞƐƐ͘
ŶŽƚŚĞƌƉŽƉƵůĂƌ/ͲƌĞůĂƚĞĚŚŽůĚŝŶŐĂŵŽŶŐ
ĐĞƌƚĂŝŶĨƵŶĚƐŝƐh^ĐƵƐƚŽŵĞƌĞŶŐĂŐĞŵĞŶƚ
ƉůĂƞŽƌŵWĞŐĂƐLJƐƚĞŵƐ͘dŚĞĐŽŵƉĂŶLJƐĂLJƐ͚͗/Ĩ
LJŽƵ͛ǀĞĚƌŝǀĞŶĂĐĂƌ͕ƵƐĞĚĂĐƌĞĚŝƚĐĂƌĚ͕ĐĂůůĞĚĂ
ĐŽŵƉĂŶLJĨŽƌƐĞƌǀŝĐĞ͕ŽƉĞŶĞĚĂŶĂĐĐŽƵŶƚ͕ŇŽǁŶ
ŽŶĂƉůĂŶĞ͕ƐƵďŵŝƩĞĚĂĐůĂŝŵ͕ŽƌƉĞƌĨŽƌŵĞĚ
ĐŽƵŶƚůĞƐƐŽƚŚĞƌĞǀĞƌLJĚĂLJƚĂƐŬƐ͕ĐŚĂŶĐĞƐĂƌĞ
LJŽƵ͛ǀĞŝŶƚĞƌĂĐƚĞĚǁŝƚŚWĞŐĂ͕͛ƌĞĨĞƌƌŝŶŐƚŽŝƚƐ
ƉůĂƞŽƌŵƉƌŽĚƵĐƚ͘
WĞŐĂƐLJƐƚĞŵƐ͛/ͲƉŽǁĞƌĞĚĂƉƉůŝĐĂƟŽŶƐ
ĂƌĞƉĂƌƚŽĨƚŚĞƌĞĂƐŽŶǁŚLJEĞƉƚƵŶĞĨƵŶĚ
ŵĂŶĂŐĞƌůŝhŶǁŝŶŝƐƐƵĐŚĂďŝŐĨĂŶ͘dŚĞƐƚŽĐŬ
ŝƐŽŶĞŽĨEĞƉƚƵŶĞ'ůŽďĂůdĞĐŚŶŽůŽŐLJ&ƵŶĚ͛Ɛ
ďŝŐŐĞƌŚŽůĚŝŶŐƐĂůŽŶŐƐŝĚĞƐŽŵĞďĞƩĞƌͲŬŶŽǁŶ
ĐŽŵƉĂŶŝĞƐƐƵĐŚĂƐ&ĂĐĞŬ͕ƉƉůĞĂŶĚsŝƐĂ͘
2021
ĞĞƉDŝŶĚ͕ƚŚĞ/ĚĞǀĞůŽƉĞƌĨŽƵŶĚĞĚďLJ
ŶĞƵƌŽƐĐŝĞŶƟƐƚĞŵŝƐ,ĂƐƐĂďŝƐǁŚŽŝƐǁŝĚĞůLJ
ĐŽŶƐŝĚĞƌĞĚƚŽďĞŽŶĞŽĨƚŚĞůĞĂĚŝŶŐ/ĞdžƉĞƌƚƐŝŶ
ƚŚĞǁŽƌůĚ͘
/ƚŚŝŐŚůLJůŝŬĞůLJƚŚĂƚƚŚĞďŝŐƉƵďůŝĐĐůŽƵĚ
ƉůĂƞŽƌŵƐǁŝůůďĞƚŚĞĞĂƐŝĞƐƚǁĂLJƚŽŐĞƚ/ͲďĂƐĞĚ
ĂƉƉůŝĐĂƟŽŶƐǁŝĚĞůLJĚŝƐƚƌŝďƵƚĞĚ͘
ŵĂnjŽŶtĞď^ĞƌǀŝĐĞƐ͕DŝĐƌŽƐŽŌ͛ƐnjƵƌĞĂŶĚ
'ŽŽŐůĞůŽƵĚĂƌĞůŝŬĞůLJƚŽƉƌŽǀŝĚĞĐůŝĞŶƚƐǁŝƚŚ
ďŽůƚͲŽŶĂŶĚƵƉƐĞůů/ƚŽŽůƐĂŶĚĂƉƉůŝĐĂƟŽŶƐ͕Ăůů
ĐŽŶŶĞĐƚĞĚŽǀĞƌƚŚĞŝŶƚĞƌŶĞƚ͘/D͕KƌĂĐůĞ͕ŚŝŶĂ͛Ɛ
ůŝďĂďĂĂŶĚĂŝĚƵŵĂLJĨŽůůŽǁƐŝŵŝůĂƌƉĂƚŚƐ͘
FAR-REACHING
POTENTIAL
/ŚĂƐƐƵĐŚĨĂƌͲƌĞĂĐŚŝŶŐƉŽƚĞŶƟĂůƚŚĂƚŝƚŝƐ
ƚŽƵŐŚƚŽĞŶǀŝƐĂŐĞĂŶLJŝŶĚƵƐƚƌLJƚŚĂƚǁŝůůŶŽƚďĞ
ƐŽŵĞŚŽǁƐŚĂŬĞŶƵƉďLJĞŵĞƌŐŝŶŐ/ĂƉƉůŝĐĂƟŽŶƐ͕
ĞƐƉĞĐŝĂůůLJŶŽǁƚŚĂƚĚĂƚĂĐŽůůĞĐƟŽŶŝƐďĞĐŽŵŝŶŐ
ƐŽĞĂƐLJĂŶĚƵƐĞĨƵů͘
&ŽƌĞdžĂŵƉůĞ͕ŽŝůŐŝĂŶƚZŽLJĂůƵƚĐŚ^ŚĞůů
;Z^ͿŝƐƌĞƉŽƌƚĞĚƚŽďĞǀĞƌLJĞŶƚŚƵƐŝĂƐƟĐĂďŽƵƚ
/ƚĞĐŚŶŽůŽŐLJ͕ƐĂLJŝŶŐƐĞŶƐŽƌƐĂƌĞĐŚĞĂƉĂŶĚĐĂŶ
ďĞƵƐĞĚƚŽŵŽŶŝƚŽƌƉĞƌĨŽƌŵĂŶĐĞ͘
h<ĐŽŵƉĂŶŝĞƐƐƵĐŚĂƐĂĞƌŽͲĞŶŐŝŶĞĞƌ
ZŽůůƐͲZŽLJĐĞ;ZZ͘Ϳ͕ƉŚĂƌŵĂŐŝĂŶƚ'ůĂdžŽ^ŵŝƚŚ<ůŝŶĞ
;'^<Ϳ͕h<ͲůŝƐƚĞĚŵŝŶĞƌƐ͕ďĂŶŬƐĂŶĚĞŶĞƌŐLJ
ƐƵƉƉůŝĞƌƐĂƌĞĂůƐŽŽďǀŝŽƵƐƉŽƚĞŶƟĂůďĞŶĞĮĐŝĂƌŝĞƐ
ŽĨ/ĂƉƉůŝĐĂƟŽŶƐ͘
dŚŝƐŵĂLJƐƵŐŐĞƐƚƚŚĂƚƚŚĞďĞƐƚŝŶǀĞƐƚŵĞŶƚ
ƌĞƚƵƌŶƐǁŽŶ͛ƚŶĞĐĞƐƐĂƌŝůLJĐŽŵĞĨƌŽŵ/
ĂƉƉůŝĐĂƟŽŶĚĞƐŝŐŶĞƌƐ͕ďƵƚĨƌŽŵƚŚŽƐĞĐŽŵƉĂŶŝĞƐ
ĂďůĞƚŽƵƐĞƚŚĞŵƚŽƚŚĞŝƌĂĚǀĂŶƚĂŐĞ͘;^&Ϳ
/^>/DZ͗ĚŝƚŽƌĂŶŝĞůŽĂƚƐǁŽƌƚŚŚĂƐĂƉĞƌƐŽŶĂů
ŝŶǀĞƐƚŵĞŶƚŝŶ&ƵŶĚƐŵŝƚŚƌĞĨĞƌĞŶĐĞĚŝŶƚŚŝƐĂƌƟĐůĞ
24 May 2018 | SHARES |
23
ADVERTISING FEATURE
MITON GLOBAL OPPORTUNITIES:
BARGAIN HUNTING IN THE
INVESTMENT
TRUST
SECTOR
SEEKING EMBEDDED VALUE IN ALTERNATIVE AREAS
I
trusts that are trading at a lower price to the value of the underlying
assets in order to realise gains over the medium to long term. The key
driver is the fact that in the current climate, investors are being paid
royally for accepting liquidity risk3. The fact that we enjoy closed ended
protection (investment trusts have a fixed number of
shares) is crucial in allowing us to fish away from the
crowds. It allows us to take patient decisions knowing that
RISKS
there is no risk of having to meet short term redemption
Forecasts are not reliable
indicators of future returns.
requests.
n order to generate returns, we believe investors will increasingly
need to look for alternative investments, away from funds, which
invest in company shares and bonds1. One such area is the investment
trust sector, where there are an increasing number of investment
opportunities following a series of significant structural
changes.
We have been in an environment where very low interest
rates have triggered rising asset prices through a lack of
alternative options. We believe the high valuations on
which global company shares currently trade are a direct
result of the very low returns available from bonds. As we
have seen bond yields2 rise, stockmarkets have been
undermined. Moving on from a period of unconventional
monetary policy would be healthy in the long term;
however, share prices are likely to continue to undergo a
period of turmoil whilst investors adapt to the new reality.
Investors are able to obtain measurable income from
conventional sources such as bonds, and will become
less inclined to own “income manufacturing” trusts such
as those which invest in aircraft leasing or infrastructure
funds. The damage to the share prices will be from a
change in demand patterns rather than from significant
damage at a portfolio level.
Consolidation process
Since 2000, those investment companies that traditionally
bought investment trusts have undergone a process of
consolidation. Consequently, many companies have
merged to form vast wealth management chains. The
impact of this consolidation has meant that a large
proportion of the investment trust sector has become
effectively off limits to such firms as they are unable to
cope with the huge capacity and liquidity levels required
by these new mega-chains whose assets under
management number in the billions.
The value of investments
can fall as well as rise and
investors may not get back
the full amount invested.
Miton Global Opportunities plc
may borrow money which can
then be used to make further
investments (gearing). In a
rising market, this ‘gearing’
can magnify the gains or
losses on your investment.
DEFINITIONS
1
Bond – A loan in the form of
a security, either issued by a
UK or overseas government
(government bonds) or company (corporate bonds), which
pays a fixed rate of interest
over a given time period, at
the end of which the initial
amount borrowed is repaid.
2
Bond yield – The interest
received from a fixed income
security and is usually
expressed annually as a
percentage based on the
investment’s cost, its current
market value or its face value.
3
Liquidity risk – The risk
stemming from the lack of
To provide an idea of the scale of MIGO’s investment
universe, there are currently over 400 investment trusts
listed on the London Stock Exchange with an aggregate
value of over £130 billion. Over 300 of these investment
trusts are currently less than £400 million in size, and
offer exposure to a broad range of alternative asset
classes from the likes of property to natural resources.
MIGO is therefore able to offer significant diversification
across this pool of potential opportunities.
We expect the continued consolidation of the wider
investment community to precipitate further structural
change for investment trusts under £250 million in size.
Furthermore, there appears to be no let-up in the growth
of alternative asset classes creating future opportunities,
many with an income bias. This development should
lead to an increasing supply of future opportunities
going forward.
In summary, we are focused on extracting embedded
value, which already exists, not trying to generate returns
from trying to second guess unpredictable future share
price or market movements. We believe there is good
scope for this latent value to be realised. We are excited
by the opportunities and believe MIGO’s research-led
approach has the ability to make gains over the longterm,
in a significant but under exploited segment of the
UK market.
This dynamic has in effect served to ‘orphan’ hundreds
marketability of an investment
that cannot be bought or sold
of investment trusts, many of whom are now
quickly enough to prevent or
Useful diversification
underresearched and increasingly illiquid as demand has
minimize a loss.
In addition to the natural defensive buffer created by
naturally slowed, despite there being no critical issue with
owning deeply discounted assets, owning shares in
the trusts, assets or their overall strategies. Without
MIGO offers useful diversification given some of the current themes.
demand, the
Specific opportunities in the Indian stockmarket, residential property
share prices of these investment trusts have slowly drifted lower
in Berlin and Forestry all feature prominently in the portfolio. Miton
than the value of their underlying assets creating a significant
does not give investment advice, so if you are unsure of the suitability
opportunity for the diligent and specialist investor to buy.
of this investment you should speak to a financial adviser.
Miton Global Opportunities Trust plc (MIGO) is, we believe, a unique
investment proposition that specifically seeks to exploit opportunities in
this part of the investment trust sector. MIGO’s patient investment
approach allows it to extract the embedded value in those investment
Important information
The views expressed are those of the
fund manager at the time of writing and
are subject to change without notice.
They are not necessarily the views of
Miton and do not constitute investment
advice. Miton has used all reasonable
efforts to ensure the accuracy of the
information contained in the
communication, however some information and statistical data has been
obtained from external sources. Whilst
Miton believes these sources to be reliable, Miton cannot guarantee the reliability, completeness or accuracy of the
content or provide a warrantee.
Investors should read the Trust’s product documentation before investing
including, the latest Annual Report and
Accounts and the Alternative
Investment Fund Managers Directive
(AIFMD) Disclosure Document as they
contain important information regarding the trust, including charges, tax and
specific risk warnings and will form the
basis of any investment. This financial
promotion is issued by Miton, a trading
name of Miton Trust Managers Limited.
Miton Trust Managers Limited is
authorised and regulated by the
Financial Conduct Authority and is
registered in England No. 220241
with its registered office at 6th Floor,
Paternoster House, 65 St Paul’s
Churchyard, London, EC4M 8AB.
MFP 18/72.
WHERE TO INVEST YOUR SIPP CASH
WI
D
A
N F
M
any individuals with SIPPs (self-invested
personal pensions) are likely to enjoy
a cash windfall in late May as tax relief
ĨƌŽŵ,DZƌĞůĂƟŶŐƚŽƚŚĞƉƌĞǀŝŽƵƐƚĂdž
year is paid into their account.
/ŶƚŚŝƐĂƌƟĐůĞǁĞǁŝůůĞdžĂŵŝŶĞǁŚLJ
many investors will see cash drop into their account
ŶŽǁĂŶĚŽīĞƌƐŽŵĞƐƵŐŐĞƐƟŽŶƐĨŽƌŚŽǁLJŽƵŵĂLJ
ĐŽŶƐŝĚĞƌĂůůŽĐĂƟŶŐƚŚŝƐĐĂƐŚŝŶƚŚĞŵĂƌŬĞƚƐ͘
HOW DOES THE SYSTEM WORK?
tŚĞŶLJŽƵŵĂŬĞĐŽŶƚƌŝďƵƟŽŶƐƚŽĂƉĞƌƐŽŶĂů
pension the administrator of your pension scheme,
typically your pension provider, will claim basic rate
(20%) tax relief on your behalf.
dĂdžƉĂLJĞƌƐŝŶƚŚĞŚŝŐŚĞƌ;ϰϬйͿĂŶĚĂĚĚŝƟŽŶĂů
;ϰϱйͿƌĂƚĞƚĂdžďƌĂĐŬĞƚƐŵƵƐƚĐůĂŝŵƚŚĞŝƌŽǁŶĞdžƚƌĂ
ƌĞůŝĞĨƉĞƌƐŽŶĂůůLJƚŚƌŽƵŐŚƚŚĞŝƌƚĂdžƌĞƚƵƌŶ͘
tŝƚŚƐŽŵĞƉƌŽǀŝĚĞƌƐ͕ŽŌĞŶďŝŐŝŶƐƵƌĂŶĐĞĮƌŵƐ͕
you receive your tax relief immediately because
ƚŚĞLJŚĂǀĞƐƵĸĐŝĞŶƚĐĂƉŝƚĂůƚŽƉƌĞͲĨƵŶĚƚŚĞƐĞƐƵŵƐ
before they receive the cash from the taxman.
,ŽǁĞǀĞƌ͕ŽƵƚƐŝĚĞƚŚĞďŝŐŐĞƐƚĮƌŵƐƉƌĞͲĨƵŶĚŝŶŐ
isn’t the norm, so you only receive the relevant
relief once it has been paid by HMRC.
WHEN DOES THE CASH ARRIVE?
Your SIPP provider collates the details of all those
L
L
ĐƵƐƚŽŵĞƌƐǁŚŽŚĂǀĞŵĂĚĞĂƉĞƌƐŽŶĂůĐŽŶƚƌŝďƵƟŽŶ
ŝŶĂƚĂdžŵŽŶƚŚĂŶĚƚŚĞŶŐŝǀĞƐ,DZĂƐŝŶŐůĞĮŐƵƌĞ
ĨŽƌĂůůƚŚĞĐŽŶƚƌŝďƵƟŽŶƐƌĞĐĞŝǀĞĚ͘
HMRC in turn sends the tax relief to your
ƉƌŽǀŝĚĞƌĨŽƌĂůůƚŚŽƐĞĐƵƐƚŽŵĞƌƐŝŶĂƐŝŶŐůĞ
ƉĂLJŵĞŶƚ͘ŌĞƌƚŚŝƐƉƌŽĐĞƐƐŝƐĐŽŵƉůĞƚĞƚŚĞĨƵŶĚƐ
are paid to customers’ accounts.
For a variety of reasons many of us wait
ƵŶƟůƚŚĞĮŶĂůŵŽŶƚŚŽĨƚŚĞƚĂdžLJĞĂƌ͕ƌƵŶŶŝŶŐĨƌŽŵ
ϲDĂƌĐŚƚŽϱƉƌŝů͕ƚŽŵĂŬĞĐŽŶƚƌŝďƵƟŽŶƐƚŽŽƵƌ
personal pensions.
This could be due to a natural tendency to
ůĞĂǀĞƚŚŝŶŐƐƚŽƚŚĞůĂƐƚŵŝŶƵƚĞŽƌďĞĐĂƵƐĞ
ǁĞĂƌĞǁĂŝƟŶŐĨŽƌĐůĂƌŝƚLJŽŶŽƵƌĞĂƌŶŝŶŐƐĂŶĚ
ƚĂdžƉŽƐŝƟŽŶ͘
If you contribute in this period, then your
ƐĐŚĞŵĞĂĚŵŝŶŝƐƚƌĂƚŽƌŚĂƐƵŶƟůϯϬƉƌŝůƚŽŵĂŬĞ
the claim to HMRC for the relief, which is then paid
on 21 May and will usually appear in customer
accounts a day or two later.
So what should you do with this extra cash?
>Ğƚ͛ƐŶŽǁůŽŽŬĂƚĮǀĞŝŶǀĞƐƚŵĞŶƚŝĚĞĂƐƐƉƌĞĂĚ
across funds, investment trusts and stocks.
ƐĂůǁĂLJƐ͖ŽƵƌŝĚĞĂƐĂƌĞĚĞƐŝŐŶĞĚƚŽŐŝǀĞLJŽƵ
ŝŶƐƉŝƌĂƟŽŶĂŶĚĂƉůĂƞŽƌŵĨŽƌLJŽƵƚŽŐŽŽīĂŶĚ
do further research. They may not be suitable
ĨŽƌĞǀĞƌLJŽŶĞĚƵĞƚŽĚŝīĞƌĞŶƚŝŶǀĞƐƚŵĞŶƚƟŵĞ
ŚŽƌŝnjŽŶƐĂŶĚƌŝƐŬĂƉƉĞƟƚĞ͘
24 May 2018 | SHARES |
25
TWO FUND IDEAS
ROYAL LONDON UK EQUITY INCOME
(GB00B8Y4ZB91) BUY
Figures from Seven Investment Management
show that so far in the 21st Century the FTSE 100
has delivered a return of 12% without dividends but
once dividends are reinvested this return is almost
10 times as large at 114%.
For long-term investors it therefore makes
sense to have an income-focused fund in your
portfolio and to buy the ‘acc’ version which rolls up
dividend payments so you own more fund units.
Royal London UK Equity Income, which trades
on an historic yield of 3.9%, has been managed
by Martin Cholwill since 2005. It is a top quartile
performer on a three and five-year view. Cholwill
focuses on companies with robust balance sheets
which are sufficiently out of favour to enable them
to be bought at a higher yield than that offered by
the wider market.
Royal Dutch Shell is Royal London UK Equity Income’s top holding
BAILLIE GIFFORD JAPANESE
(GB0006011133) BUY
There may have been a recent pause for breath
in Japan’s strong growth run but Japanese
companies are becoming more shareholderfriendly and this bodes well for the long-term
returns for those funds which invest in this market.
Managed by a strong team, Baillie Gifford
Japanese invests in a focused portfolio of
between 45 and 65 names and adopts a patient,
low turnover approach.
Included are a diverse collection of names
which typically stray a long way from the
benchmark. This fund has consistently delivered
top quartile performance. More prominent names
in the portfolio include tech firm Softbank and car
maker Toyota.
dŽLJŽƚĂŝƐŽŶĞŽĨƚŚĞŵŽƌĞƉƌŽŵŝŶĞŶƚŶĂŵĞƐŝŶƚŚĞƉŽƌƞŽůŝŽ
26
| SHARES | 24 May 2018
TWO INVESTMENT TRUST IDEAS
ABERDEEN DIVERSIFIED INCOME &
GROWTH TRUST (ADIG) 121.4P BUY
MURRAY INTERNATIONAL
(MYI) £11.86 BUY
Although historic performance has been patchy
this trust has performed better of late under
co-managers Mike Brooks and Tony Foster.
They took the helm in February 2017 with a
long-term approach based on investing in a
diverse collection of assets including private
equity, listed equities, emerging market debt,
property and infrastructure through to insurancelinked assets and special opportunities such as
healthcare royalties and aircraft leasing.
Brooks and Foster tend to avoid commodities
as an asset class thanks to their volatility and
lack of income.
This trust has been managed by Bruce Stout
with a worldwide remit since 2004. Stout is
supported in his decision making by 10 global
equity specialists and invests for the long-term
with limited turnover in the fund.
The top 20 equity holdings account for more
than half the portfolio. Also investing in bonds, it
aims to beat the income available from the market
and offers a dividend yield of around 4%.
The manager tends to take a cautious approach.
Top holdings include microchip manufacturer
Taiwan Semiconductor Manufacturing; Groupo
Asur, the Mexican airports operator; and it recently
added Poland’s Bank Pekao to the portfolio.
AND A BONUS STOCK IDEA
WATKIN JONES
(WJG:AIM) 207P BUY
This student accommodation provider looks
an attractive proposition on a long-term view.
The shares currently trade on an undemanding
price-to-earnings ratio of 13.4-times and yield
an attractive 3.7%.
As an asset class student accommodation
typically has quite limited volatility and does
not react in the same way as commercial
property to the economic cycle.
Watkin Jones also has interests in the
build-to-rent sector which is increasingly
looking attractive as so many people can’t
afford to buy their own home.
It recently struck a deal with M&G and Lochailort
to deliver a build-to-rent scheme in Reading.
Unite’s (UTG) property director Richard Simpson
will become chief executive of Watkin Jones in
January 2019 and is a well-known and highly
rated individual in the property sector. (TS)
tĂƚŬŝŶ:ŽŶĞƐůŽŽŬƐĂŶĂƩƌĂĐƟǀĞƉƌŽƉŽƐŝƟŽŶ
24 May 2018 | SHARES |
27
INVESTMENT TRUSTS
Is a fund manager lazy
if they rarely change
their portfolio?
Finsbury Growth & Income has only added three new names to its portfolio since 2011
W
ould you be happy
if the manager of a
fund in which you
had a personal investment
had only found three new
investment ideas in the past
seven years? That’s exactly
ƚŚĞƐŝƚƵĂƟŽŶĂƚFinsbury
Growth & Income (FGT), one
of the best known investment
trusts on the market.
/ŶƐƵĐŚĂƐŝƚƵĂƟŽŶ͕LJŽƵĂƌĞ
paying a fund manager to
ĂĐƟǀĞůLJŵĂŶĂŐĞĂƉŽƌƞŽůŝŽĂŶĚ
with that you’d expect them to
ďĞďƵƌƐƟŶŐǁŝƚŚŐƌĞĂƚŝĚĞĂƐƚŽ
make you money.
tŚŝůĞĚŽŝŶŐůŝƩůĞƚŽŶŽƚŚŝŶŐ
may sound lazy, some of the
best investors are the ones
ǁŚŽĚŽŶ͛ƚĐŽŶƐƚĂŶƚůLJŇŝƉŝŶ
ĂŶĚŽƵƚŽĨŚŽůĚŝŶŐƐ͘/ŶǀĞƐƟŶŐ
is a long-term game and
ƉĂƟĞŶĐĞŝƐǀĞƌLJŝŵƉŽƌƚĂŶƚ͘
The fund manager should
ƌĞŐƵůĂƌůLJĐŚĞĐŬĞdžŝƐƟŶŐŚŽůĚŝŶŐƐ
aren’t slipping out of line with
their strategy and checking that
ƚŚĞLJƐƟůůĚĞƐĞƌǀĞĂƉůĂĐĞŝŶƚŚĞ
ƉŽƌƞŽůŝŽ͘
dŚĂƚĐĂŶďĞĞƋƵĂůůLJĂƐƟŵĞ
ĐŽŶƐƵŵŝŶŐĂƐĮŶĚŝŶŐŶĞǁ
investment ideas, hence why
their fund management fees
ĂƌĞƐƟůůũƵƐƟĮĞĚ;ĂƐƐƵŵŝŶŐ
they are working hard in
the background).
28
| SHARES | 24 May 2018
The investment trust has a stake in Unilever
which owns food and drink brands including
>ŝƉƚŽŶ͕&ůŽƌĂĂŶĚŽƌŶĞƩŽ
HOPING TO SCORE WITH
NEW HOLDING
Finsbury Growth & Income’s
investment into football club
Manchester United in 2017
ǁĂƐŽŶůLJŝƚƐƚŚŝƌĚŶĞǁƉŽƐŝƟŽŶ
ŝŶƚŚĞƉŽƌƞŽůŝŽƐŝŶĐĞϮϬϭϭ͘
͚/ĐŽŶƟŶƵĞƚŽďĞůŝĞǀĞƚŚĞ
lack of change is one of the
ŵŽƐƚƌĞŵĂƌŬĂďůĞĐŚĂƌĂĐƚĞƌŝƐƟĐƐ
of Finsbury Growth & Income,’
says fund manager Nick Train,
appearing at the Frostrow
Capital investor event on
16 May.
He recalls a comment by Jessie
Livermore, one of the world’s
ŵŽƐƚŝĐŽŶŝĐĂŶĚŝŶŇƵĞŶƟĂů
ƚƌĂĚĞƌƐŽĨĂůůƟŵĞ͚͘/ƚǁĂƐŶĞǀĞƌ
my thinking that made big
money for me. It was always
ƐŝƫŶŐ͘'ŽƚƚŚĂƚ͍DLJƐŝƫŶŐ
ƟŐŚƚ͛͘dŚŝƐŝƐŽŶĞŽĨ>ŝǀĞƌŵŽƌĞ͛Ɛ
famous quotes.
͚^ŝƫŶŐƟŐŚƚŝƐŶŽƚĞĂƐLJƚŽĚŽ͕͛
remarks Train. ‘We’ve had to
work hard to learn how to do
this well.’
Lindsell Train-managed
Finsbury Growth & Income has
achieved 15.3% annualised total
return over the past 10 years
versus 6.6% from its benchmark.
This superior track record is
one of the reasons why we
highly rate the investment trust
and believe it should be a core
INVESTMENT TRUSTS
holding for investors.
Even its bad years in the
ĚĞĐĂĚĞƵŶĚĞƌĂŶĂůLJƐŝƐǁĞƌĞƐƟůů
ĐŽŶƐŝĚĞƌĂďůLJďĞƩĞƌƚŚĂŶƚŚĞ
broader market – apart from
2008 when all fund managers
can be excused for delivering
ĂďĂĚƉĞƌĨŽƌŵĂŶĐĞ;ĂŵŝĚƚŚĞ
ŐůŽďĂůĮŶĂŶĐŝĂůĐƌŝƐŝƐͿ͘
THE APPEAL OF UNILEVER
Unilever (ULVR) is a good
example of stock where Train
has displayed considerable
ƉĂƟĞŶĐĞ͘/ƚŚĂƐďĞĞŶŝŶ&ŝŶƐďƵƌLJ
'ƌŽǁƚŚΘ/ŶĐŽŵĞ͛ƐƉŽƌƞŽůŝŽĨŽƌ
14 years and the fund manager
says he’s never sold a single
share in that period.
/ŶƚĞƌĞƐƟŶŐůLJ͕ĂƐƐĞƚŵĂŶĂŐĞƌ
Lindsell Train has more than
£1bn of clients’ money in
Unilever across all of its managed
funds including Finsbury Growth
& Income. ‘We bought more
Unilever stock in mid-May,’
says Train who calls it ‘a truly
ĞdžĐĞƉƟŽŶĂůĐŽŵƉĂŶLJ͛͘
A superior dividend growth
record is one of the principal
reasons why the fund manager
loves the stock. Unilever has
increased its dividend by 8%
a year for the past 55 years.
‘That dividend growth has
created incredible value for
shareholders. Excluding the
dividend, Unilever’s share
price has gone up by nearly
seven-fold in the past 25 years
and the FTSE All-Share hasn’t
even trebled.’
Approximately 3.5% of
the trust’s net asset value is
accounted by its holding in
technology group Fidessa
(FDSA) which is in a takeover
ƐŝƚƵĂƟŽŶ͕ƐŽƚŽŽŝƐƌWĞƉƉĞƌ
FINSBURY GROWTH
& INCOME:
ANNUAL RETURNS
2008
ϮϬϬϵ
2010
2011
2012
2013
2014
2015
2016
2017
2018*
Benchmark
ͲϮϵ͘ϵй
30.1%
14.5%
-3.5%
12.3%
20.8%
1.2%
1.0%
16.8%
13.1%
ͲϬ͘ϵй
Price
ͲϮϵ͘ϲй
33.7%
34.7%
4.1%
25.4%
35.1%
ϱ͘ϵй
12.4%
12.6%
21.5%
-0.5%
*to 30 April 2018
Source: Morningstar
Benchmark: FTSE All Share TR GBP
“
There will be ‘the
mother of all battles’
between today’s
global internet giants
to ensure people are
attracted to their
devices, apps and
services and not those
of their rivals
It will make the
ITV/Sky battle in
the 1990s look like a
playground tiff
Snapple which accounts for
2.4% of the trust’s NAV.
Assuming those takeovers
complete, Train will have a large
amount of cash to either add
the fourth new holding since
ϮϬϭϭŽƌƚŽƉƵƉĞdžŝƐƟŶŐŚŽůĚŝŶŐƐ͘
The investment trust has the
ŇĞdžŝďŝůŝƚLJƚŽŚŽůĚƵƉƚŽϮϬйŽĨ
its assets outside of the UK, a
ĮŐƵƌĞƚŚĂƚĐƵƌƌĞŶƚůLJƐƚĂŶĚƐĂƚ
16%. ‘I have a number of “what
if” or “maybe” ideas,’ he says,
adding that they are a mixture
of UK and non UK businesses.
Train also revealed that he
would like to increase Finsbury
Growth & Income’s stake in
Manchester United from 1.6%
of NAV to 2-2.5% ‘before the
stock trebles in value’.
EXPECTING BIG GAINS
dŚĞĨƵŶĚŵĂŶĂŐĞƌŝƐĐŽŶĮĚĞŶƚ
that Manchester United’s
share price could be three
ƟŵĞƐŚŝŐŚĞƌŝŶƚŚĞŶĞĂƌĨƵƚƵƌĞ͘
͚,ŽƵƐƚŽŶZŽĐŬĞƚƐ;ďĂƐŬĞƚďĂůů
team) was sold last year
for $2.25bn which is nine
ƟŵĞƐƐĂůĞƐ͘tĞďŽƵŐŚƚŝŶƚŽ
Manchester United when it was
ƚƌĂĚŝŶŐĂƚƚŚƌĞĞƟŵĞƐƐĂůĞƐ͛͘
He says there will be ‘the
ŵŽƚŚĞƌŽĨĂůůďĂƩůĞƐ͛ďĞƚǁĞĞŶ
today’s global internet giants to
ĞŶƐƵƌĞƉĞŽƉůĞĂƌĞĂƩƌĂĐƚĞĚƚŽ
their devices, apps and services
and not those of their rivals. He
adds: ‘It will make the ITV/Sky
ďĂƩůĞŝŶƚŚĞϭϵϵϬƐůŽŽŬůŝŬĞĂ
ƉůĂLJŐƌŽƵŶĚƟī͛͘
ƐƉĂƌƚŽĨƚŚĂƚŝŶĚƵƐƚƌLJďĂƩůĞ͕
Train believes the value of sports
ĨƌĂŶĐŚŝƐĞƐǁŝůůĐŽŶƟŶƵĞƚŽƌŝƐĞĂƐ
quality of content is extremely
ŝŵƉŽƌƚĂŶƚŝŶƚƌLJŝŶŐƚŽĂƩƌĂĐƚĂŶĚ
ƌĞƚĂŝŶǀŝĞǁĞƌƐ͘;Ϳ
24 May 2018 | SHARES |
29
THIS IS AN ADVERTISING PROMOTION
Europe stakes its claim
as the default diversifier
to UK portfolios
Tim Stevenson, Fund Manager of
Henderson EuroTrust, discusses Europe’s
ĐƌĞĚĞŶƟĂůƐĂƐĂĚŝǀĞƌƐŝĮĞƌƚŽh<ƉŽƌƞŽůŝŽƐ
TŚĞŝŶǀĞƐƚŵĞŶƚůĂŶĚƐĐĂƉĞŝƐŵŽƌĞƵŶĐĞƌƚĂŝŶ
ƚŚĂŶƚŚŝƐƟŵĞůĂƐƚLJĞĂƌĂŶĚĨŽƌƐŽŵĞƟŵĞ
ǁĞŚĂǀĞĨĞůƚƚŚĂƚǁŽƌůĚŵĂƌŬĞƚƐŶĞĞĚĞĚ
ƚŽĐƵƌďƚŚĞŝƌĞŶƚŚƵƐŝĂƐŵ͘ŽŶĂůĚdƌƵŵƉ͛Ɛ
ƉƌŽƚĞĐƟŽŶŝƐƚƉŽůŝĐŝĞƐĂƌĞůŝŬĞůLJƚŽŚĂǀĞĂƌŝƉƉůĞ
ĞīĞĐƚŽŶǁŽƌůĚƚƌĂĚĞ͕ǁŚŝůĞƚŚĞǁĞŝŐŚƚŽĨd&Ɛ
ŚĂƐƉƵƐŚĞĚǀĂůƵĂƟŽŶƐŝŶƚŚĞh^ŚŝŐŚĞƌ͘
ŽŵŝŶŐŽīƚŚĞďĂĐŬŽĨƚŚĞƐƚƌŽŶŐĞƐƚƉĞƌŝŽĚ
ŽĨƐLJŶĐŚƌŽŶŝƐĞĚŐůŽďĂůŐƌŽǁƚŚƐŝŶĐĞƚŚĞ
ĮŶĂŶĐŝĂůĐƌŝƐŝƐ͕ŵĂƌŬĞƚŽƉƟŵŝƐŵŚĂƐďĞĞŶ
ƵŶĚĞƌƐƚĂŶĚĂďůĞ͕ďƵƚƚŚĞƌĞĂůŝƚLJŝƐƚŚĂƚǁĞ
ĂƌĞƐƟůůŝŶĂůŽǁŐƌŽǁƚŚǁŽƌůĚĂŶĚǀŽůĂƟůŝƚLJ
ŝƐĐƌĞĞƉŝŶŐďĂĐŬŝŶƚŽŐůŽďĂůŵĂƌŬĞƚƐ͘/ƚŝƐ
ĂůůƚŽŽĞĂƐLJƚŽŐĞƚĐĂƌƌŝĞĚĂǁĂLJǁŝƚŚƚŚĞ
ƌĞĐĞŶƚŐƌŽǁƚŚƐƚŽƌLJ͕ďƵƚŝƚ͛ƐŝŵƉŽƌƚĂŶƚŶŽƚ
ƚŽĞdžƚƌĂƉŽůĂƚĞƚŚŝƐĂƐƚŚĞŶĞǁŶŽƌŵĂů͘ƚ
,ĞŶĚĞƌƐŽŶƵƌŽdƌƵƐƚ͕ǁĞĂƌĞƉƵƫ
ŶŐŵŽƌĞ
ĂŶĚŵŽƌĞĞŵƉŚĂƐŝƐŽŶƚŽƚĂůƌĞƚƵƌŶĂƐŐůŽďĂů
ŐƌŽǁƚŚĐŽŽůƐďĂĐŬƚŽĨĂŵŝůŝĂƌůĞǀĞůƐ͘
Europe’s performance during the recent
ŵŝƐƐŽŵĞƚŚŝŶŐƚŽƚĂŬĞŶŽƚĞŽĨ͕ŚŽǁĞǀĞƌ͘
>ĂƐƚLJĞĂƌƐĂǁƚŚĞƵƌŽnjŽŶĞƉŽƐƚŝƚƐďĞƐƚ
ĂŶŶƵĂůŐƌŽǁƚŚƌĂƚĞƐŝŶĐĞϮϬϬϳ͕ŽƵƚƉĞƌĨŽƌŵŝŶŐ
ƚŚĞh<ĨŽƌƚŚĞĮƌƐƚƟŵĞƐŝŶĐĞϮϬϭϬʹĂŶĚďLJ
ƐŽŵĞĚŝƐƚĂŶĐĞ͘dŚĞƵƌŽnjŽŶĞ͛ƐĂŶŶƵĂů'W
ŐƌŽǁƚŚƌĂƚĞŝŶϮϬϭϳĐĂŵĞŝŶĂƚϮ͘ϱй͕ǁŚŝůĞ
ƚŚĞh<ŽŶůLJŵĂŶĂŐĞĚϭ͘ϴйͶĂŶĚŝƚĞǀĞŶ
ďĞĂƚƚŚĞh^͕ǁŚŝĐŚŐƌĞǁĂƚϮ͘ϯйůĂƐƚLJĞĂƌ͘/ƚ͛Ɛ
ĂƚĞƐƚĂŵĞŶƚƚŽƚŚĞƌĞŐŝŽŶ͛ƐƌĞĐŽǀĞƌLJĂŶĚŝƚ͛Ɛ
ĨĂŝƌƚŽƐĂLJƵƌŽƉĞŝƐŝŶŝƚƐďĞƐƚƐŚĂƉĞƐŝŶĐĞƚŚĞ
ĐƌŝƐŝƐĂŶĚůĂLJƐĂƐƚƌŽŶŐĐůĂŝŵƚŽďĞƚŚĞĚĞĨĂƵůƚ
ĚŝǀĞƌƐŝĮĞƌƚŽh<ƉŽƌƞŽůŝŽƐ͘
hZKW͛^>KE'ͳdZD&Kh^
>ŽŽŬŝŶŐŽǀĞƌĂƚƚŚĞh<͕ŝƚǁŽƵůĚďĞĞĂƐLJƚŽ
ƉŝĐŬŽŶŝƚƐƚƌŽƵďůĞĚƉŽůŝƟĐĂůůĂŶĚƐĐĂƉĞ͕ďƵƚ
ŐůŽďĂůƉŽůŝƟĐƐŝƐŝŶƐƵĐŚĂƐƚĂƚĞLJŽƵĐŽƵůĚĮŶĚ
ƉƌŽďůĞŵƐũƵƐƚĂďŽƵƚĂŶLJǁŚĞƌĞ͕ĂŌĞƌĂůůʹ
ƉŽůŝƟĐƐŝƐĂƵƐĞĨƵůĚŝƐƚƌĂĐƟŽŶƚŽƚŚĞƵŶĚĞƌůLJŝŶŐ
ƉƌŽďůĞŵƐ͕ĂŶLJǁŚĞƌĞŝŶƚŚĞǁŽƌůĚ͘&ƌŽŵĂŶ
ŝŶǀĞƐƚŽƌ͛ƐƉĞƌƐƉĞĐƟǀĞ͕ŵLJĐŽŶĐĞƌŶǁŽƵůĚ
ďĞŵŽƌĞƚŽǁĂƌĚƐƐŚŽƌƚͲƚĞƌŵŝƐŵŝŶƚŚĞh<͕
ǁŚŝĐŚĐŽŵƉůĞƚĞůLJƵŶĚĞƌŵŝŶĞƐƐƵƐƚĂŝŶĂďůĞ
THIS IS AN ADVERTISING PROMOTION
ůŽŶŐͲƚĞƌŵŐƌŽǁƚŚ͘dŚŝƐƉŽŝŶƚǁĂƐŽƵƚůŝŶĞĚǁĞůů
ŝŶĂŶĂƌƟĐůĞďLJƚŚĞ&ŝŶĂŶĐŝĂůdŝŵĞƐƌĞĐĞŶƚůLJ
;ϬϴͬϬϰͬϮϬϭϴͿ͕ƟƚůĞĚ͞>ĂnjLJĨƵŶĚŵĂŶĂŐĞƌƐůĞĂĚ
ƚŽůŽƵƐLJƌĞƚƵƌŶƐ͟ďLJdŽŵƌŽǁŶ͘
h<ĞƋƵŝƟĞƐĂƌĞƐĞĞŶďLJƐŽŵĞĂƐŐŽŽĚǀĂůƵĞ
ĂƚƉƌĞƐĞŶƚ͕ǁŝƚŚƚŚĞǁŽƌƐƚŽĨƌĞdžŝƚƐĞĞŵŝŶŐůLJ
ƉƌŝĐĞĚŝŶ͘ůƚŚŽƵŐŚƚŚŝƐŵŝŐŚƚƐŽƵŶĚůŝŬĞŐŽŽĚ
ŶĞǁƐĨŽƌƌĞdžŝƚŽƉƟŵŝƐƚƐ͕ĂĐŽŶĐĞƌŶǁŽƵůĚ
ďĞƚŚĞƉŽƚĞŶƟĂůĨŽƌŚŽƐƟůĞƚĂŬĞŽǀĞƌƐʹĂƐ
ƐĞĞŶǁŝƚŚŝŶĚƵƐƚƌŝĂůŵĂŶƵĨĂĐƚƵƌĞƌ'<EʹĂŶĚ
ŽƉƉŽƌƚƵŶŝƐƟĐŝŶǀĞƐƚŽƌƐŬĞĞŶƚŽƌĂŝƐĞƚŚĞƐŚĂƌĞ
ƉƌŝĐĞĂŶĚŵĂŬĞĂƋƵŝĐŬƉƌŽĮƚ͘/ƌĞŵĂŝŶŽĨƚŚĞ
ǀŝĞǁƚŚĂƚƌĞdžŝƚŝƐĂŵŽŶƵŵĞŶƚĂůǁƌŽŶŐƐƚĞƉ
ďLJƚŚĞh<͕ǁŚŝĐŚǁŝůůŶŽƚƐŽůǀĞĂŶLJŽĨƚŚĞh<͛Ɛ
ƵŶĚĞƌůLJŝŶŐƉƌŽďůĞŵƐ͘
/ƚŝƐŵƵĐŚŵŽƌĞĚŝĸ
ĐƵůƚĨŽƌƐƵĐŚƐŚŽƌƚͲ
ƚĞƌŵŝƐŵƚŽƉƌĞǀĂŝůŝŶƵƌŽƉĞ͕ǁŚĞƌĞŵĂŶLJ
ĐŽƵŶƚƌŝĞƐŚĂǀĞĂůŽŶŐƚĞƌŵƐŚĂƌĞŚŽůĚĞƌŝŶ
ĂĨŽƵŶĚĂƟŽŶŽƌĨĂŵŝůLJ͕ƐƵĐŚĂƐƌŶĂƵĚŝŶ
&ƌĂŶĐĞĂŶĚƚŚĞYƵĂŶĚƚĨĂŵŝůLJŝŶ'ĞƌŵĂŶLJ͕ĨŽƌ
ĞdžĂŵƉůĞ͘dŚŝƐĂůůŽǁƐĐŽŵƉĂŶŝĞƐƚŽƚĂŬĞĂĨĂƌ
ůŽŶŐĞƌŝŶǀĞƐƚŵĞŶƚƟŵĞŚŽƌŝnjŽŶĂŶĚŝŶŵŽƐƚ
ĐĂƐĞƐůŽŶŐƚĞƌŵĮŶĂŶĐŝŶŐŝƐĐŚĞĂƉĞƌĂŶLJǁĂLJ͘
ƐĂƌĞƐƵůƚ͕ƵƌŽƉĞĂŶĐŽŵƉĂŶŝĞƐ͕ďLJĂŶĚůĂƌŐĞ͕
ŚĂǀĞĂŐƌĞĂƚĞƌĨŽĐƵƐŽŶůŽŶŐͲƚĞƌŵƐƵƐƚĂŝŶĂďůĞ
ŐƌŽǁƚŚƚŚĂŶƚŚĞŝƌh<ƉĞĞƌƐ͘
ƵƌŽƉĞĂŶŵĂƌŬĞƚƐŚĂǀĞŶŽƚĨŽůůŽǁĞĚ
ƚŚƌŽƵŐŚŽŶĂƉŽƐŝƟǀĞƐĞŶƟŵĞŶƚǁŚŝĐŚǁĂƐ
ĞǀŝĚĞŶƚŝŶĞĂƌůLJϮϬϭϳ͕ĞǀĞŶƚŚŽƵŐŚƚŚĞ
ĞĐŽŶŽŵŝĐĂŶĚƉŽůŝƟĐĂůĞŶǀŝƌŽŶŵĞŶƚŚĂƐ
improved, more so in the case of economies
ƉĞƌŚĂƉƐƚŚĂŶƉŽůŝƟĐƐ͘ZĞĐĞŶƚůLJ͕ƚŚĞƌĞŐŝŽŶ
ƐĞĞŵƐƚŽŚĂǀĞƚĂŬĞŶƚŚĞďƌƵŶƚŽĨŝŶǀĞƐƚŽƌƐ͛
ǁƌĂƚŚ͕ĞǀĞŶƚŚŽƵŐŚǀĂůƵĂƟŽŶƐ͕ŝŶƚĞƌĞƐƚƌĂƚĞƐ
ĂŶĚƚŚĞƌĞŐŝŽŶ͛ƐŚŝŐŚͲƉĂLJŝŶŐĚŝǀŝĚĞŶĚƐƐĞĂƐŽŶ
ĂůůƐŚŽƵůĚďĞƐƵƉƉŽƌƟǀĞ͘DŽƐƚĐŽŵƉĂŶŝĞƐ
ŝŶƚŚĞƌĞŐŝŽŶƉĂLJŽŶĞůƵŵƉͲƐƵŵĚŝǀŝĚĞŶĚ
between March and the end of June, and with
strong earnings growth in Europe, Henderson
ƵƌŽdƌƵƐƚŚĂƐďĞĞŶĂďĞŶĞĮĐŝĂƌLJ͘
dŚĞdƌƵƐƚŚĂƐĂƐƚƌŽŶŐĚŝǀŝĚĞŶĚƉĂLJŝŶŐ
ŚŝƐƚŽƌLJʹůĂƐƚLJĞĂƌǁĞƉĂŝĚĂŶĂŶŶƵĂůĚŝǀŝĚĞŶĚ
ŽĨϮϱƉƉĞƌƐŚĂƌĞĂŶĚŚĂǀĞŝŶĐƌĞĂƐĞĚƚŚĞ
ĚŝǀŝĚĞŶĚƐĨŽƌϭϯĐŽŶƐĞĐƵƟǀĞLJĞĂƌƐ͘tĞĂŝŵ
ƚŽĐŽŶƟŶƵĞƚŚŝƐƚƌĞŶĚĂŶĚ/͛ŵĐŽŶĮĚĞŶƚƚŚĂƚ
ƚŚĞƌĞĐĞŶƚĚŝǀŝĚĞŶĚƐƉĂLJŝŶŐƐĞĂƐŽŶŝŶƵƌŽƉĞ
ǁŝůůŚĞůƉƵƐĂĐŚŝĞǀĞƚŚĂƚƚŚŝƐLJĞĂƌ͕ĂůƚŚŽƵŐŚ
nothing is guaranteed.
z>/>^>KK<yWE^/s
/ŶƚĞƌŵƐŽĨƐƚŽĐŬƐĞůĞĐƟŽŶ͕ǁĞĂƌĞůŽŽŬŝŶŐ
ĨŽƌĐŽŵƉĂŶŝĞƐǁŝƚŚƐƚƌŽŶŐĂŶĚƐƵƐƚĂŝŶĂďůĞ
ŐƌŽǁƚŚƉŽƚĞŶƟĂů͘'ĞŶĞƌĂůůLJƐƉĞĂŬŝŶŐ͕ǁĞƚŚŝŶŬ
ǀĂůƵĂƟŽŶƐŽŶĞĐŽŶŽŵŝĐĂůůLJƐĞŶƐŝƟǀĞƐƚŽĐŬƐʹ
͚ĐLJĐůŝĐĂůƐ͛ʹĂƌĞƐƚƌĞƚĐŚĞĚĐŽŵƉĂƌĞĚƚŽŵŽƌĞ
ĚĞĨĞŶƐŝǀĞƐƚŽĐŬƐ͘dŚŝƐŝƐďĂƐĞĚŽŶĐƵƌƌĞŶƚ
ƉƌŝĐĞͲƚŽͲŬƌĂƟŽƐ͕ǁŚŝĐŚǁĞƚŚŝŶŬĂƌĞŵŽƌĞ
ƵƐĞĨƵůƚŚĂŶƉƌŝĐĞͲƚŽͲĞĂƌŶŝŶŐƐƌĂƟŽƐĂƚƚŚŝƐ
ƉŽŝŶƚŝŶƟŵĞ͕ŽǁŝŶŐƚŽƚŚĞĨĂĐƚƚŚĂƚŵĂŶLJ
ĐLJĐůŝĐĂůĐŽŵƉĂŶŝĞƐĂƌĞƐŚŽǁŝŶŐĂďŽǀĞͲĂǀĞƌĂŐĞ
ĂŶĚƉŽƚĞŶƟĂůůLJƵŶƐƵƐƚĂŝŶĂďůĞŵĂƌŐŝŶƐ͘/ƚ͛ƐĂŶ
ŝŶƚĞƌĞƐƟŶŐƉŽŝŶƚďĞĐĂƵƐĞŝƚ͛ƐŽŶůLJƚŚĞƐĞĐŽŶĚ
ƟŵĞƚŚĂƚĐLJĐůŝĐĂůƐŚĂǀĞďĞĞŶŵŽƌĞĞdžƉĞŶƐŝǀĞ
ƌĞůĂƟǀĞƚŽĚĞĨĞŶƐŝǀĞƐƐŝŶĐĞϭϵϵϱ͘
tĞĂƌĞƚŚĞƌĞĨŽƌĞĂǀŽŝĚŝŶŐĐLJĐůŝĐĂůƐƚŽĐŬƐ
and topping up on companies that have
ƐƵƐƚĂŝŶĂďůĞďƵƐŝŶĞƐƐĞƐǁŝƚŚƌŽŽŵĨŽƌŐƌŽǁƚŚ͘
&ŽƌĞdžĂŵƉůĞ͕&ƌĞŶĐŚĐŽƐŵĞƟĐƐĐŽŵƉĂŶLJ
>͛KƌĠĂůŝƐĂƐƚŽĐŬǁĞůŝŬĞʹŶŽƚďĞĐĂƵƐĞŝƚŝƐ
ĂĚĞĨĞŶƐŝǀĞƐƚŽĐŬďƵƚƌĂƚŚĞƌŝƚŚĂƐĂƐŽůŝĚ
ďƵƐŝŶĞƐƐƚŚĂƚǁĞƚŚŝŶŬĐĂŶŐƌŽǁŝŶĂůŽǁ
growth environment.
dŚĞdƌƵƐƚ͛ƐŐĞĂƌŝŶŐĨĂĐŝůŝƚLJǁĂƐƌĞĐĞŶƚůLJ
ŝŶĐƌĞĂƐĞĚƚŽάϮϱŵŝůůŝŽŶ͕ǁŚŝĐŚǁŽƵůĚ
ƌĞƉƌĞƐĞŶƚĂďŽƵƚϭϬйŽĨƚŚĞƉŽƌƞŽůŝŽŝĨǁĞ
ƵƟůŝƐĞĚĂůůŽĨŝƚ͘ƚƚŚĞƐĂŵĞƟŵĞ͕ƚŚĞdƌƵƐƚ͛Ɛ
ƉŽƌƞŽůŝŽůŝƐƚŝƐĂƚŝƚƐƐŚŽƌƚĞƐƚĨŽƌƐŽŵĞƟŵĞ
ĂƚĂƌŽƵŶĚϰϱƐƚŽĐŬƐʹĚŽǁŶĨƌŽŵϱϴŝŶ
ƉƌŝůϮϬϭϳ͘dŚĞƉŽƌƞŽůŝŽŝƐĂůƐŽŵƵĐŚŵŽƌĞ
ǁĞŝŐŚƚĞĚƚŽǁĂƌĚƐŽƵƌƚŽƉϭϬŚŽůĚŝŶŐƐʹϯϱй
ĐŽŵƉĂƌĞĚƚŽůĞƐƐƚŚĂŶϯϬйŝŶĞĐĞŵďĞƌϮϬϭϲ͘
tĞŝŶƚĞŶĚƚŽƵƐĞƚŚĞŐĞĂƌŝŶŐĨĂĐŝůŝƚLJ
ƉƌƵĚĞŶƚůLJĂŶĚǁĞŚĂǀĞďĞĞŶƵƐŝŶŐŵĂƌŬĞƚ
ǁĞĂŬŶĞƐƐŝŶ&ĞďƌƵĂƌLJĂŶĚDĂƌĐŚƚŽƚŽƉƵƉ
ŽŶĞdžŝƐƟŶŐƉŽƐŝƟŽŶƐ͕ƐƵĐŚĂƐĞƵƚƐĐŚĞWŽƐƚ͕
'ĞďĞƌŝƚ͕ĂŶĚŵƵŶĚŝĂŵŽŶŐƐƚŽƚŚĞƌ͘
tĞŚĂǀĞĂůƐŽƚŽƉƉĞĚƵƉŽŶƵƌŽƉĞ͛Ɛ
ƵŶƐƵŶŐƚĞĐŚŚĞƌŽĞƐ͕ŶĂŵĞůLJ^ƉĂŶŝƐŚ/dŐƌŽƵƉ
THIS IS AN ADVERTISING PROMOTION
ŵĂĚĞƵƐĂŶĚ'ĞƌŵĂŶďƵƐŝŶĞƐƐŝŶƚĞůůŝŐĞŶĐĞ
ƐŽŌǁĂƌĞƉƌŽǀŝĚĞƌ^W͘ŽŶƚƌĂƌLJƚŽƚŚĞ
ŐĞŶĞƌĂůĐŽŶƐĞŶƐƵƐ͕ƵƌŽƉĞ͛ƐƚĞĐŚůĞĂĚƐƚŚĞ
ǁŽƌůĚŝŶƐŽŵĞĂƌĞĂƐ͘tĞŚĂǀĞŚĞůĚ^WĂŶĚ
ŵĂĚĞƵƐĞĂĐŚĨŽƌĂůŽŶŐƟŵĞĂŶĚŚĂǀĞďĞĞŶ
ďĞŶĞĮĐŝĂƌŝĞƐŽĨƚŚĞŝƌŐƌŽǁƚŚ͘
ƚƚŚĞĞŶĚŽĨDĂƌĐŚ͕,ĞŶĚĞƌƐŽŶƵƌŽdƌƵƐƚ
shares were trading at a discount to the
ƵŶĚĞƌůLJŝŶŐEsŽĨĂďŽƵƚϳ͘ϱйĂŶĚĂůƚŚŽƵŐŚ
ƚŚĂƚŵĂLJǁĞůůŶĂƌƌŽǁŽǀĞƌƚŚĞĐŽŵŝŶŐŵŽŶƚŚƐ͕
ŝƚĂůƐŽŚĂƐƉŽƚĞŶƟĂůƚŽǁŝĚĞŶŝĨƐĞŶƟŵĞŶƚ
ƚŽǁĂƌĚƐƵƌŽƉĞĂŶĞƋƵŝƚLJŵĂƌŬĞƚƐĚĞƚĞƌŝŽƌĂƚĞƐ
ĨƵƌƚŚĞƌ͘ƵƚĂƐĂƐŶĂƉƐŚŽƚ͕ĂŶŝŶǀĞƐƚŵĞŶƚ
ƚƌƵƐƚƚƌĂĚŝŶŐĂƚĂŚŝŐŚĞƌƚŚĂŶƵƐƵĂůĚŝƐĐŽƵŶƚ
compared with what has been the case in
ƌĞĐĞŶƚLJĞĂƌƐŵŝŐŚƚĨƌŽŵƟŵĞƚŽƟŵĞŽīĞƌĂ
ŐŽŽĚŽƉƉŽƌƚƵŶŝƚLJĨŽƌĂůŽŶŐƚĞƌŵŝŶǀĞƐƚŽƌ͘
>ŽŽŬŝŶŐĂƚƚŚĞǁŝĚĞƌƉŝĐƚƵƌĞ͕ǁŽƌůĚ
ĞĐŽŶŽŵŝĐŐƌŽǁƚŚŵŝŐŚƚũƵƐƚďĞĂƚƚŚĂƚ͞ĂƐ
ŐŽŽĚĂƐŝƚŐĞƚƐ͟ŵŽŵĞŶƚ͘'WŐƌŽǁƚŚƌĂƚĞƐ
ĂƌĞƐůŽǁŝŶŐĚŽǁŶďƵƚƵƌŽƉĞ͛ƐĞŵƉŚĂƐŝƐŽŶ
ůŽŶŐͲƚĞƌŵŝƐŵĂŶĚŝŶŶŽǀĂƟŽŶŝƐĂĐŽŵďŝŶĂƟŽŶ
ǁĞƚŚŝŶŬǁŝůůůĞĂĚƚŽƐƵƐƚĂŝŶĂďůĞŐƌŽǁƚŚ͘
^ƚƌĂƚĞŐŝĐĂůůLJ͕ǁĞƚŚŝŶŬƵƌŽƉĞǁŝůůďĞŽŶĞŽĨ
ƚŚĞŵŽƌĞĨƌƵŝƞƵůĂƌĞĂƐĨŽƌŐƌŽǁƚŚŝŶǀĞƐƚŽƌƐ͘
'>K^^Zz
sŽůĂƟůŝƚLJ͗ The rate and extent at which the
ƉƌŝĐĞŽĨĂƉŽƌƞŽůŝŽ͕ƐĞĐƵƌŝƚLJŽƌŝŶĚĞdž͕ŵŽǀĞƐ
ƵƉĂŶĚĚŽǁŶ͘/ĨƚŚĞƉƌŝĐĞƐǁŝŶŐƐƵƉĂŶĚĚŽǁŶ
ǁŝƚŚůĂƌŐĞŵŽǀĞŵĞŶƚƐ͕ŝƚŚĂƐŚŝŐŚǀŽůĂƟůŝƚLJ͘/Ĩ
ƚŚĞƉƌŝĐĞŵŽǀĞƐŵŽƌĞƐůŽǁůLJĂŶĚƚŽĂůĞƐƐĞƌ
ĞdžƚĞŶƚ͕ŝƚŚĂƐůŽǁĞƌǀŽůĂƟůŝƚLJ͘/ƚŝƐƵƐĞĚĂƐĂ
measure oĨƚŚĞƌŝƐŬŝŶĞƐƐŽĨĂŶŝŶǀĞƐƚŵĞŶƚ͘
dŽƚĂůƌĞƚƵƌŶ͗ The return on an investment,
ŝŶĐůƵĚŝŶŐŝŶĐŽŵĞĨƌŽŵĚŝǀŝĚĞŶĚƐĂŶĚŝŶƚĞƌĞƐƚ͕
ĂƐǁĞůůĂƐĂƉƉƌĞĐŝĂƟŽŶŽƌĚĞƉƌĞĐŝĂƟŽŶŝŶƚŚĞ
ƉƌŝĐĞŽĨƚŚĞƐĞĐƵƌŝƚLJ͕ŽǀĞƌĂŐŝǀĞŶƟŵĞƉĞƌŝŽĚ͕
ƵƐƵĂůůLJĂLJĞĂƌ͘
WƌŝĐĞͲƚŽͲĞĂƌŶŝŶŐƐƌĂƟŽ;WͬƌĂƟŽͿ͗ƉŽƉƵůĂƌ
ƌĂƟŽƵƐĞĚƚŽǀĂůƵĞĂĐŽŵƉĂŶLJ͛ƐƐŚĂƌĞƐ͘/ƚŝƐ
ĐĂůĐƵůĂƚĞĚďLJĚŝǀŝĚŝŶŐƚŚĞĐƵƌƌĞŶƚƐŚĂƌĞƉƌŝĐĞ
ďLJŝƚƐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ͘/ŶŐĞŶĞƌĂů͕ĂŚŝŐŚ
WͬƌĂƟŽŝŶĚŝĐĂƚĞƐƚŚĂƚŝŶǀĞƐƚŽƌƐĞdžƉĞĐƚƐƚƌŽŶŐ
ĞĂƌŶŝŶŐƐŐƌŽǁƚŚŝŶƚŚĞĨƵƚƵƌĞ͕ĂůƚŚŽƵŐŚĂ
;ƚĞŵƉŽƌĂƌLJͿĐŽůůĂƉƐĞŝŶĞĂƌŶŝŶŐƐĐĂŶĂůƐŽůĞĂĚ
ƚŽĂŚŝŐŚWͬƌĂƟŽ͘
WƌŝĐĞͲƚŽͲŬƌĂƟŽ͗dŚĞƉƌŝĐĞͲƚŽͲŬƌĂƟŽ
;WͬZĂƟŽͿŝƐĂƌĂƟŽƵƐĞĚƚŽĐŽŵƉĂƌĞĂƐƚŽĐŬ͛Ɛ
ŵĂƌŬĞƚǀĂůƵĞƚŽŝƚƐŬǀĂůƵĞ͘/ƚŝƐĐĂůĐƵůĂƚĞĚ
ďLJĚŝǀŝĚŝŶŐƚŚĞĐƵƌƌĞŶƚĐůŽƐŝŶŐƉƌŝĐĞŽĨƚŚĞ
ƐƚŽĐŬďLJƚŚĞůĂƚĞƐƚƋƵĂƌƚĞƌ͛ƐŬǀĂůƵĞƉĞƌ
ƐŚĂƌĞ͘ůƐŽŬŶŽǁŶĂƐƚŚĞƉƌŝĐĞͲĞƋƵŝƚLJƌĂƟŽ͘
'ĞĂƌŝŶŐ͗ŵĞĂƐƵƌĞŽĨĂĐŽŵƉĂŶLJ͛Ɛ
ůĞǀĞƌĂŐĞƚŚĂƚƐŚŽǁƐŚŽǁĨĂƌŝƚƐŽƉĞƌĂƟŽŶƐ
ĂƌĞĨƵŶĚĞĚďLJůĞŶĚĞƌƐǀĞƌƐƵƐƐŚĂƌĞŚŽůĚĞƌƐ͘
/ƚŝƐĂŵĞĂƐƵƌĞŽĨƚŚĞĚĞďƚůĞǀĞůŽĨĂ
ĐŽŵƉĂŶLJ͘tŝƚŚŝŶŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐŝƚƌĞĨĞƌƐ
ƚŽŚŽǁŵƵĐŚŵŽŶĞLJƚŚĞƚƌƵƐƚďŽƌƌŽǁƐĨŽƌ
investment purposes.
ĞĨŽƌĞŝŶǀĞƐƟŶŐŝŶĂŶŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƌĞĨĞƌƌĞĚƚŽŝŶƚŚŝƐĚŽĐƵŵĞŶƚ͕LJŽƵƐŚŽƵůĚƐĂƟƐĨLJLJŽƵƌƐĞůĨĂƐƚŽŝƚƐƐƵŝƚĂďŝůŝƚLJĂŶĚƚŚĞƌŝƐŬƐŝŶǀŽůǀĞĚ͕
LJŽƵŵĂLJǁŝƐŚƚŽĐŽŶƐƵůƚĂĮŶĂŶĐŝĂůĂĚǀŝƐĞƌ͘WĂƐƚƉĞƌĨŽƌŵĂŶĐĞŝƐŶŽƚĂŐƵŝĚĞƚŽĨƵƚƵƌĞƉĞƌĨŽƌŵĂŶĐĞ͘dŚĞǀĂůƵĞŽĨĂŶŝŶǀĞƐƚŵĞŶƚĂŶĚƚŚĞ
ŝŶĐŽŵĞĨƌŽŵŝƚĐĂŶĨĂůůĂƐǁĞůůĂƐƌŝƐĞĂŶĚLJŽƵŵĂLJŶŽƚŐĞƚďĂĐŬƚŚĞĂŵŽƵŶƚŽƌŝŐŝŶĂůůLJŝŶǀĞƐƚĞĚ͘dĂdžĂƐƐƵŵƉƟŽŶƐĂŶĚƌĞůŝĞĨƐĚĞƉĞŶĚƵƉŽŶ
ĂŶŝŶǀĞƐƚŽƌ͛ƐƉĂƌƟĐƵůĂƌĐŝƌĐƵŵƐƚĂŶĐĞƐĂŶĚŵĂLJĐŚĂŶŐĞŝĨƚŚŽƐĞĐŝƌĐƵŵƐƚĂŶĐĞƐŽƌƚŚĞůĂǁĐŚĂŶŐĞ͘EŽƚŚŝŶŐŝŶƚŚŝƐĚŽĐƵŵĞŶƚŝƐŝŶƚĞŶĚĞĚƚŽ
ŽƌƐŚŽƵůĚďĞĐŽŶƐƚƌƵĞĚĂƐĂĚǀŝĐĞ͘dŚŝƐĚŽĐƵŵĞŶƚŝƐŶŽƚĂƌĞĐŽŵŵĞŶĚĂƟŽŶƚŽƐĞůůŽƌƉƵƌĐŚĂƐĞĂŶLJŝŶǀĞƐƚŵĞŶƚ͘/ƚĚŽĞƐŶŽƚĨŽƌŵƉĂƌƚŽĨĂŶLJ
ĐŽŶƚƌĂĐƚĨŽƌƚŚĞƐĂůĞŽƌƉƵƌĐŚĂƐĞŽĨĂŶLJŝŶǀĞƐƚŵĞŶƚ͘tĞŵĂLJƌĞĐŽƌĚƚĞůĞƉŚŽŶĞĐĂůůƐĨŽƌŽƵƌŵƵƚƵĂůƉƌŽƚĞĐƟŽŶ͕ƚŽŝŵƉƌŽǀĞĐƵƐƚŽŵĞƌƐĞƌǀŝĐĞ
ĂŶĚĨŽƌƌĞŐƵůĂƚŽƌLJƌĞĐŽƌĚŬĞĞƉŝŶŐƉƵƌƉŽƐĞƐ͘
/ƐƐƵĞĚŝŶƚŚĞh<ďLJ:ĂŶƵƐ,ĞŶĚĞƌƐŽŶ/ŶǀĞƐƚŽƌƐ͘:ĂŶƵƐ,ĞŶĚĞƌƐŽŶ/ŶǀĞƐƚŽƌƐŝƐƚŚĞŶĂŵĞƵŶĚĞƌǁŚŝĐŚ:ĂŶƵƐĂƉŝƚĂů/ŶƚĞƌŶĂƟŽŶĂů>ŝŵŝƚĞĚ;ƌĞŐ
ŶŽ͘ϯϱϵϰϲϭϱͿ͕,ĞŶĚĞƌƐŽŶ'ůŽďĂů/ŶǀĞƐƚŽƌƐ>ŝŵŝƚĞĚ;ƌĞŐ͘ŶŽ͘ϵϬϲϯϱϱͿ͕,ĞŶĚĞƌƐŽŶ/ŶǀĞƐƚŵĞŶƚ&ƵŶĚƐ>ŝŵŝƚĞĚ;ƌĞŐ͘ŶŽ͘ϮϲϳϴϱϯϭͿ͕ůƉŚĂ'ĞŶ
ĂƉŝƚĂů>ŝŵŝƚĞĚ;ƌĞŐ͘ŶŽ͘ϵϲϮϳϱϳͿ͕,ĞŶĚĞƌƐŽŶƋƵŝƚLJWĂƌƚŶĞƌƐ>ŝŵŝƚĞĚ;ƌĞŐ͘ŶŽ͘ϮϲϬϲϲϰϲͿ͕;ĞĂĐŚŝŶĐŽƌƉŽƌĂƚĞĚĂŶĚƌĞŐŝƐƚĞƌĞĚŝŶŶŐůĂŶĚĂŶĚ
tĂůĞƐǁŝƚŚƌĞŐŝƐƚĞƌĞĚŽĸ
ĐĞĂƚϮϬϭŝƐŚŽƉƐŐĂƚĞ͕>ŽŶĚŽŶϮDϯͿĂƌĞĂƵƚŚŽƌŝƐĞĚĂŶĚƌĞŐƵůĂƚĞĚďLJƚŚĞ&ŝŶĂŶĐŝĂůŽŶĚƵĐƚƵƚŚŽƌŝƚLJƚŽ
provide investment products and services.
ΞϮϬϭϴ͕:ĂŶƵƐ,ĞŶĚĞƌƐŽŶ/ŶǀĞƐƚŽƌƐ͘dŚĞŶĂŵĞ:ĂŶƵƐ,ĞŶĚĞƌƐŽŶ/ŶǀĞƐƚŽƌƐŝŶĐůƵĚĞƐ,'/'ƌŽƵƉ>ŝŵŝƚĞĚ͕,ĞŶĚĞƌƐŽŶ'ůŽďĂů/ŶǀĞƐƚŽƌƐ;ƌĂŶĚ
DĂŶĂŐĞŵĞŶƚͿ^ĂƌůĂŶĚ:ĂŶƵƐ/ŶƚĞƌŶĂƟŽŶĂů,ŽůĚŝŶŐ>>͘
FUNDS
Will absolute return funds
become fashionable again?
Many have lagged in the recent bull-run but will they shine if markets
start to fall?
T
he return of market
ǀŽůĂƟůŝƚLJĂŶĚƚŚĞĞŶĚŽĨ
ůŽŽƐĞŵŽŶĞƚĂƌLJƉŽůŝĐLJŝŶ
ƉĂƌƚƐŽĨƚŚĞǁŽƌůĚŚĂƐůĞĚƐĞǀĞƌĂů
ŵĂƌŬĞƚĐŽŵŵĞŶƚĂƚŽƌƐƚŽƐƵŐŐĞƐƚ
ƚŚĂƚĂďƐŽůƵƚĞƌĞƚƵƌŶĨƵŶĚƐĐŽƵůĚ
ďĞĐŽŵĞŵŽƌĞŝŶƚĞƌĞƐƟŶŐŝĨ
ŵĂƌŬĞƚƐƐƚĂƌƚƚŽƉƵůůďĂĐŬ͘
ďƐŽůƵƚĞƌĞƚƵƌŶĨƵŶĚƐ
ĂƌĞĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞĂ
ƉŽƐŝƟǀĞƌĞƚƵƌŶŽǀĞƌƌŽůůŝŶŐ
ϭϮͲŵŽŶƚŚƉĞƌŝŽĚƐŝŶall market
ĐŽŶĚŝƟŽŶƐ͕ĂůƚŚŽƵŐŚƚŚŝƐŝƐ
ŶĞǀĞƌŐƵĂƌĂŶƚĞĞĚ͘
tŝƚŚŝŶƚŚĞŽƉĞŶͲĞŶĚĞĚ
ĨƵŶĚƐ;K/ƐͬƵŶŝƚƚƌƵƐƚƐͿ
ƵŶŝǀĞƌƐĞ͕ĞdžĂŵƉůĞƐŽĨĂďƐŽůƵƚĞ
ƌĞƚƵƌŶĨƵŶĚƐŝŶĐůƵĚĞJPM
'ůŽďĂůDĂĐƌŽKƉƉŽƌƚƵŶŝƟĞƐ
(GB00B4WKYF80)͕^ĐŚƌŽĚĞƌ
h<LJŶĂŵŝĐďƐŽůƵƚĞZĞƚƵƌŶ
(GB00B3N53472)͕ϳ/DZĞĂů
ZĞƚƵƌŶ;'ϬϬϳϱD^ϲϭϵͿ͕
dŚƌĞĂĚŶĞĞĚůĞh<ďƐŽůƵƚĞ
Alpha (GB00B8BX5538)ĂŶĚ
:ƵƉŝƚĞƌďƐŽůƵƚĞZĞƚƵƌŶ
;'ϬϬϲYϴϰdϲϳͿ͘
ůƐŽŝŶƚŚŝƐƉĞĞƌŐƌŽƵƉŝƐ
ůĂĐŬZŽĐŬh<ďƐŽůƵƚĞůƉŚĂ
;'ϬϬϱEYϵϵϬͿǁŚŝĐŚŚĂƐ
ĂĐŚŝĞǀĞĚĂŶŶƵĂůŝƐĞĚƌĞƚƵƌŶƐ
ŽĨϮ͘Ϯϲй͕ϰ͘ϰϳйĂŶĚϭ͘ϴϭй
ŽŶĂϭϬ͕ĮǀĞĂŶĚƚŚƌĞĞͲLJĞĂƌ
ďĂƐŝƐƌĞƐƉĞĐƟǀĞůLJ͕ĂĐĐŽƌĚŝŶŐ
ƚŽDŽƌŶŝŶŐƐƚĂƌ͘
ůƚŚŽƵŐŚƚŚŽƐĞůĞǀĞůƐŽĨ
ƌĞƚƵƌŶƐĂƌĞƐŝŐŶŝĮĐĂŶƚůLJůĞƐƐ
ƚŚĂŶƚŚĞďƌŽĂĚĞƌŵĂƌŬĞƚʹĂŶĚ
ŽƚŚĞƌĂďƐŽůƵƚĞƌĞƚƵƌŶĨƵŶĚƐ
ŚĂǀĞƉƌŽĚƵĐĞĚƐŝŵŝůĂƌůLJůŽǁ
ƌĞƚƵƌŶƐʹƚŚĞLJĐŽƵůĚƐƟůůĂƉƉĞĂů
Tesco is a key holding in BlackRock UK Absolute Alpha fund
ƚŽĂŵŽƌĞĐĂƵƟŽƵƐŝŶǀĞƐƚŽƌǁŚŽ ĂďƐŽůƵƚĞƌĞƚƵƌŶ͕ŵĂŶLJŚĂǀĞ
ǁĂŶƚƐƚŽĂǀŽŝĚĂůĂƌŐĞĐĂƉŝƚĂůůŽƐƐ ĚŝīĞƌĞŶƚƌĞƚƵƌŶĂŵďŝƟŽŶƐĂŶĚ
ƌŝƐŬƚŽůĞƌĂŶĐĞ͛͘
ŝŶƚŚĞĨƵƚƵƌĞ͘
,ĞƐĂLJƐĂŶLJŐŽŽĚĨƵŶĚ
ƐŚŽƵůĚƚĂŬĞĂĚǀĂŶƚĂŐĞŽĨƚŚĞŝƌ
Z/^<sZ^h^ZtZ
ĚŝīĞƌĞŶƟĂƚĞĚĞdžƉĞƌƟƐĞ͚͘KƵƌƐŝƐ
ůĂĐŬZŽĐŬh<ďƐŽůƵƚĞůƉŚĂŝƐ
ĂŐƌĞĂƚŚĞƌŝƚĂŐĞĂŶĚĂǁŽŶĚĞƌĨƵů
ĐŽͲŵĂŶĂŐĞĚďLJEŝĐŬKƐďŽƌŶĞ
ĨƌĂŶĐŚŝƐĞŝŶŝŶǀĞƐƟŶŐŝŶh<
ĂŶĚEŝŐĞůZŝĚŐĞǁŚŽƚĂƉŝŶƚŽ
ƐŝŐŶŝĮĐĂŶƚŝŶͲŚŽƵƐĞƌĞƐĞĂƌĐŚĂŶĚ ĞƋƵŝƟĞƐ͕͛ĞŶƚŚƵƐĞƐƚŚĞůĂĐŬZŽĐŬ
ĨƵŶĚŵĂŶĂŐĞƌ͘
ƐƵƉƉŽƌƚĂƚůĂĐŬZŽĐŬ͘
͚tĞ͛ƌĞƚƌLJŝŶŐƚŽĚĞůŝǀĞƌƉŽƐŝƟǀĞ
,ĞƉƌŝŵĂƌŝůLJƉƵƚƐŵŽŶĞLJƚŽ
ĂďƐŽůƵƚĞƌĞƚƵƌŶƐĂƚƐƵďƐƚĂŶƟĂůůLJ
ǁŽƌŬŝŶƚŚĞ&d^ϭϬϬĂŶĚƚŽƉ
ƌĞĚƵĐĞĚůĞǀĞůƐŽĨƌŝƐŬ͕͛ĞdžƉůĂŝŶƐ
ĞŶĚŽĨƚŚĞ&d^ϮϱϬ͘dŽƉϭϬ
KƐďŽƌŶĞ͚͘/ƚƚĂŬĞƐŽƵƚƚŚĞ
͚ůŽŶŐ͛ƉŽƐŝƟŽŶƐ;ĂƐĂƚϯϬƉƌŝůͿ
ĐŚĂůůĞŶŐĞƚŚĂƚŵĂŶLJŽĨŽƵƌĐůŝĞŶƚƐ ŝŶĐůƵĚĞĚŐƌŽĐĞƌLJŐŝĂŶƚdĞƐĐŽ
ĨĞĞůĂƌŽƵŶĚŵĂƌŬĞƚƟŵŝŶŐ͕ǁŚŝĐŚ (TSCO)͕ĐƌƵŝƐĞŽƉĞƌĂƚŽƌCarnival
ĞǀŝĚĞŶĐĞƐƵŐŐĞƐƚƐŝƐŚĂƌĚ͛͘
(CCL)͕ŵĞĚŝĂďƵƐŝŶĞƐƐZ>y
KƐďŽƌŶĞƐĂLJƐƚŚĞĂďƐŽůƵƚĞ
;Z>ͿĂŶĚďĂŶŬŝŶŐďĞŚĞŵŽƚŚ
ƌĞƚƵƌŶƵŶŝǀĞƌƐĞƐƚƌĂĚĚůĞƐŵĂŶLJ
HSBC (HSBA)͘
ĚŝīĞƌĞŶƚĂƐƐĞƚĐůĂƐƐĞƐĂŶĚ
zĞƚĂƐKƐďŽƌŶĞĞdžƉůĂŝŶƐ͚͗EŽƚ
ŝŶƐŽŵĞŝŶƐƚĂŶĐĞƐĚŝīĞƌĞŶƚ
ŽŶůLJĐĂŶǁĞƉƌŽĮƚĨƌŽŵƐŚĂƌĞƐ
ŐĞŽŐƌĂƉŚŝĞƐ͚͘ůƚŚŽƵŐŚƚŚĞ
ƚŚĂƚǁĞƚŚŝŶŬĂƌĞŐŽŝŶŐƚŽƌŝƐĞŝŶ
ĨƵŶĚƐĂůůĐĂůůƚŚĞŵƐĞůǀĞƐ
ǀĂůƵĞ͕ďƵƚǁĞĐĂŶĂůƐŽŐĞŶĞƌĂƚĞ
24 May 2018 | SHARES |
33
FUNDS
ƌĞƚƵƌŶƐƚŚƌŽƵŐŚŚĂǀŝŶŐƉŽƐŝƟŽŶƐ
ŝŶƐŚĂƌĞƐǁŚŝĐŚǁĞƚŚŝŶŬĂƌĞ
ŐŽŝŶŐƚŽĨĂůůŝŶǀĂůƵĞ;ŬŶŽǁŶĂƐ
͚ƐŚŽƌƟŶŐ͛Ϳ͘KƵƌƐŚŽƌƚŝĚĞĂƐĂůƐŽ
ŚĞůƉƚŽŚĞĚŐĞƌŝƐŬĂŶĚƌĞĚƵĐĞ
ŽǀĞƌĂůůƉŽƌƞŽůŝŽǀŽůĂƟůŝƚLJ͛͘
KƐďŽƌŶĞǁŽŶ͛ƚĚŝǀƵůŐĞ
ĐƵƌƌĞŶƚƐŚŽƌƚƉŽƐŝƟŽŶƐĂŶĚ
ƉŽŝŶƚƐŽƵƚƚŚĂƚƐŚŽƌƟŶŐŝƐŽŌĞŶ
ŵŝƐƌĞƉƌĞƐĞŶƚĞĚŝŶƚŚĞŵĞĚŝĂ͘
͚/ƚŝƐƉŽƌƚƌĂLJĞĚĂƐƐƉĞĐƵůĂƟŽŶ͘
ĐƚƵĂůůLJ͕ǁŚĂƚƐŚŽƌƟŶŐĂůǁĂLJƐ
ĚŝĚŚŝƐƚŽƌŝĐĂůůLJ͕ĂŶĚŚŽǁǁĞƵƐĞ
ŝƚĂƐĂƚŽŽů͕ŝƐƚŽƚĂŬĞŽƵƚƌŝƐŬ͕͛
ŚĞƐĂLJƐ͘
/ŶĨĂůůŝŶŐŵĂƌŬĞƚƐ͕ƚŚĞĨƵŶĚ
ŵĂŶĂŐĞƌƐĂLJƐŚĞŝƐĂďůĞƚŽ
ĞdžĞƌĐŝƐĞŚŝƐĂďŝůŝƚLJƚŽŝŶƚƌŽĚƵĐĞ
ƐŚŽƌƚƐƚŽƐƵƉƉŽƌƚƚŚĞĨƵŶĚ͛ƐĂƐƐĞƚ
ǀĂůƵĞ͕ƚŽƚĂŬĞŽƵƚǀŽůĂƟůŝƚLJĂŶĚƚŽ
ƚŚĞƌĞĨŽƌĞƌĞĚƵĐĞƌŝƐŬ͘
͚ŶĚǁŚĞƌĞĂƐŵŽƐƚĨƵŶĚ
ƌĞƚƵƌŶƐĂƌĞĚĞƚĞƌŵŝŶĞĚďLJƚŚĞ
ďĞƚĂĐŽŵƉŽŶĞŶƚ͕ŝŶŽƵƌĨƵŶĚ͕
ƌĞƚƵƌŶƐĂƌĞƉƌĞĚŽŵŝŶĂŶƚůLJ
ĚĞƚĞƌŵŝŶĞĚďLJĂůƉŚĂ͘dŚĞƌĞĨŽƌĞ
ŝƚŵĂƩĞƌƐŵƵĐŚůĞƐƐǁŚĂƚƚŚĞ
ŵĂƌŬĞƚĚŽĞƐ͕ďĞĐĂƵƐĞŽƵƌƐŚŽƌƚƐ
ƌĞĚƵĐĞŽƵƌŶĞƚŵĂƌŬĞƚĞdžƉŽƐƵƌĞ͛͘
ĞƚĂŝƐĂŵĞĂƐƵƌĞŽĨĂƐƚŽĐŬ͛Ɛ
ǀŽůĂƟůŝƚLJĐŽŵƉĂƌĞĚƚŽƚŚĞŽǀĞƌĂůů
ŵĂƌŬĞƚ͘ůƉŚĂŝƐŚŽǁŵƵĐŚ
ĞdžƚƌĂƌĞƚƵƌŶĂŶŝŶǀĞƐƚŽƌŽƌĨƵŶĚ
ŵĂŶĂŐĞƌŚĂƐĂĐŚŝĞǀĞĚǀĞƌƐƵƐĂ
ďĞŶĐŚŵĂƌŬŝŶĚĞdž͘
HSBC is another top holding
ĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚĂƚůŽǁĞƌ
ŵĂƌŬĞƚĞdžƉŽƐƵƌĞ͕ǀŽůĂƟůŝƚLJŝƐ
ĐŽŶƐŝĚĞƌĂďůLJůŽǁĞƌĂƐǁĞĐĂŶƵƐĞ
ŽƵƌƐŚŽƌƚƐƚŽŚĞĚŐĞŽƵƚƌŝƐŬƐĂŶĚ
ƚŽƉƌŽƚĞĐƚƚŚĞĨƵŶĚŝŶƟŵĞƐŽĨ
ŵĂƌŬĞƚƐƚƌĞƐƐ͛͘
KƐďŽƌŶĞďĞůŝĞǀĞƐƚŚĞ
ĐƵƌƌĞŶƚďĞŶŝŐŶŐůŽďĂůŐƌŽǁƚŚ
ŽƵƚůŽŽŬǁŝůůƐƵƉƉŽƌƚĐŽŵƉĂŶLJ
ĞĂƌŶŝŶŐƐ͕ƚŚŽƵŐŚŚĞĐĂƵƟŽŶƐ
ƚŚĞǁŝƚŚĚƌĂǁĂůŽĨƐƟŵƵůƵƐĂŶĚ
ĐŽŶƐĞƋƵĞŶĐĞƐĨŽƌƌĂƚĞƐǁŝůůďĞ
ĚĞƉƌĞƐƐŝǀĞĨŽƌĞƋƵŝƚLJŵĂƌŬĞƚƐ͕
ǁŝƚŚǀĂůƵĂƟŽŶƐůŝŬĞůLJƚŽĨĂůůĨƌŽŵ
ĞůĞǀĂƚĞĚůĞǀĞůƐŽǀĞƌƚŚĞŶĞdžƚ
ĨĞǁLJĞĂƌƐ͘
h^/E'W/ZdZ^
ĐĐŽƌĚŝŶŐůLJ͕ŚĞƐĂLJƐ͚͗tĞĚŽ
dŚĞůĂĐŬZŽĐŬĨƵŶĚĂůƐŽƵƐĞƐ
ůŝŬĞĂƩƌĂĐƟǀĞůLJǀĂůƵĞĚĐLJĐůŝĐĂů
ƉĂŝƌƚƌĂĚĞƐ͕ǁŚŝĐŚLJŽƵĐĂŶƚŚŝŶŬ
ƐŚĂƌĞƐƚŚĂƚĂƌĞůŝŬĞůLJƚŽďĞŶĞĮƚ
ŽĨĂƐƌĞůĂƟǀĞǀĂůƵĞƚƌĂĚĞƐ͘
͚WĂŝƌƚƌĂĚŝŶŐŝƐĂŶŽƉƉŽƌƚƵŶŝƚLJ ĨƌŽŵƚŚĂƚŐƌŽǁƚŚďĂĐŬĚƌŽƉĂŶĚ
ǁĞĐĂŶƉůĂLJƚŚĂƚĂĐƌŽƐƐĂƌĂŶŐĞ
ǁŚĞƌĞǁĞƐĞĞƚǁŽĐŽŵƉĂŶŝĞƐ
ŽĨƐĞĐƚŽƌƐʹƚŚĞh<ŵĂƌŬĞƚŝƐ
ƚŚĂƚŚĂǀĞƐŝŵŝůĂƌŽƉĞƌĂƟŶŐ
ĐŚĂƌĂĐƚĞƌŝƐƟĐƐ͕ĂƌĞĂůŵŽƐƚĂůǁĂLJƐ ŝŶĐƌĞĚŝďůLJŝŶƚĞƌŶĂƟŽŶĂůǁŝƚŚ
ĂƌŽƵŶĚŽŶůLJϯϬйŽĨƚŚĞƌĞǀĞŶƵĞ
ĞdžƉŽƐĞĚƚŽƚŚĞƐĂŵĞƐĞĐƚŽƌ͕
ĞdžƉŽƐƵƌĞŽĨƚŚĞh<ƐƚŽĐŬŵĂƌŬĞƚ
ďƵƚǁĞƚŚŝŶŬǁŝůůŚĂǀĞĚŝīĞƌĞŶƚ
ŐĞŶĞƌĂƚĞĚĚŽŵĞƐƟĐĂůůLJ͘
ƌĞƚƵƌŶƉƌŽĮůĞƐ͘
͚tĞ͛ǀĞƐŽƵŐŚƚĐŽŵƉĂŶŝĞƐǁŝƚŚ
͚dŚĞŬĞLJŽƵƚƉƵƚŝƐƚŚĂƚƚŚĞ
h^ĞdžƉŽƐƵƌĞďĞĐĂƵƐĞ
ĨƵŶĚ͛ƐŵĂƌŬĞƚĞdžƉŽƐƵƌĞŝƐ
ƚŚĞƚƌĂĚŝŶŐďĂĐŬĚƌŽƉŝƐƉŽƐŝƟǀĞ
ŵƵĐŚŵŽƌĞŵŽĚĞƐƚĂŶĚĂƐĂ
34
| SHARES | 24 May 2018
ďƵƚĂůƐŽƚŚĞƌĞ͛ƐďĞĞŶĂďĞŶĞĮƚ
ĨƌŽŵĮƐĐĂůĐŚĂŶŐĞƐǁŚŝĐŚǁŝůů
ĨƵƌƚŚĞƌĂĐĐĞůĞƌĂƚĞĞĂƌŶŝŶŐƐ
ŐƌŽǁƚŚ͛͘;:Ϳ
dKWdE,K>/E'^
(LONG POSITIONS) – AS
dϯϬͬϬϰͬϮϬϭϴ
Company
% Holding
dĞƐĐŽ
ϱ͘ϯϲй
ĂƌŶŝǀĂů
ϰ͘ϵϬй
ƌŝƟƐŚŵĞƌŝĐĂŶ
dŽďĂĐĐŽ
ϰ͘ϴϭй
Z>y
ϰ͘ϳϳй
Z,
ϰ͘ϲϲй
,^
ϰ͘Ϯϵй
&ĞƌŐƵƐŽŶ
ϯ͘ϴϰй
ZĞŶƚŽŬŝů/ŶŝƟĂů
ϯ͘ϳϲй
^ƚĂŶĚĂƌĚŚĂƌƚĞƌĞĚ
ϯ͘ϲϲй
^ŚŝƌĞ
ϯ͘ϱϴй
dŽƚĂůŽĨƉŽƌƞŽůŝŽ
ϰϯ͘ϲϯй
^ŽƵƌĐĞ͗ůĂĐŬZŽĐŬ
Only SHARES magazine
subscribers benefit
from an investment
toolkit that gives them
the edge and helps
them make the very
best investing decisions.
Do you have
the SHARES
advantage?
•
•
•
•
•
•
•
•
•
•
•
•
Live share prices
Customisable live watch list
Portfolio manager
Fund selector and prices
Intraday and historic charts
Latest broker forecasts with
alerts
Latest director deals with alerts
Fundamentals and investor tools
Online discussion forum
Priority booking for investor
events
Educational and company videos
…and of course, the weekly
digital Shares magazine with the
latest news and views from the
Shares experts
£
Don’t miss out! Try SHARES today
for just £1 for the first month, and
then just £12 a month.
NEW SUBSCRIBER OFFER
Try Shares today for just £1 for the first month, and then just £12 a month.
* The £1 for 1 month and then £12 a month offer is only available to new subscribers. Your first payment will be £1 and thereafter subscriptions will automatically continued, billed at £12 per
month unless cancelled. Subscriptions can be cancelled at any time by calling 020 7378 4424 between 8am - 4.30pm on Monday to Friday. No refunds are offered during the cancellations
period but all outstanding issues and services will be fulfilled. For enquires contact us at support@sharesmagazine.co.uk
MR MARKET
Back in black: why banks
are investable once more
Scottish Investment Trust fund manager Alasdair McKinnon on why part of
the financial sector is starting to look interesting again
T
en years ago, many
of the world’s banks
ǁĞƌĞĞƐƐĞŶƟĂůůLJďƵƐƚ͘
dŚĞŐůŽďĂůĮŶĂŶĐŝĂůĐƌŝƐŝƐǁĂƐ
ŝŶĨƵůůƐǁŝŶŐ͕ĂŶĚďĂŶŬƐǁĞƌĞ
ĨĂĐŝŶŐƚŚĞŝƌĐŽŵĞƵƉƉĂŶĐĞĨŽƌ
ĞŵƉůŽLJŝŶŐŚƵŐĞĂŵŽƵŶƚƐŽĨ
ůĞǀĞƌĂŐĞƚŽďŽŽƐƚƌĞƚƵƌŶƐ͘dŚŝƐ
ƉƌĂĐƟĐĞǁŽƌŬĞĚĨŽƌĂǁŚŝůĞ
ďƵƚƐƵĐŚƉƌĞĐĂƌŝŽƵƐŵĞƚŚŽĚƐ
ŶĞǀĞƌĞŶĚǁĞůů͘
dŚĞĐƌŝƐŝƐĞdžƉŽƐĞĚďĂŶŬƐ͛
ĐĂƉŝƚĂůďƵīĞƌƐĂƐĚĂŶŐĞƌŽƵƐůLJ
ƚŚŝŶ͘/ƚĞīĞĐƟǀĞůLJǁŝƉĞĚŽƵƚ
ƚŚĞŝƌĞƋƵŝƚLJǁŚĞŶƵŶĨĞĂƐŝďůLJ
ŽƉƟŵŝƐƟĐĂƐƐĞƚƉƌŝĐĞƐǁĞƌĞ
ĨŽƌĐĞĚƚŽŵĂƚĐŚƌĞĂůŝƚLJ͘
^ƵĐŚǁĂƐƚŚĞĂŶdžŝĞƚLJ
ŽǀĞƌƚŚĞďĂŶŬƐ͛ƐŽůǀĞŶĐLJ
ƚŚĂƚh<ƉŽůŝƟĐŝĂŶƐƐĞƌŝŽƵƐůLJ
ĐŽŶƚĞŵƉůĂƚĞĚƉƵƫŶŐƚƌŽŽƉƐ
ŽŶƚŚĞƐƚƌĞĞƚ͕ŝĨďĂŶŬƐǁĞƌĞ
ƵŶĂďůĞƚŽĚŝƐƉĞŶƐĞĐĂƐŚ͕ƚŽ
ƋƵĞůůĂŶƵŶĚĞƌƐƚĂŶĚĂďůLJĂŶŐƌLJ
ƉŽƉƵůĂƟŽŶ͘ŽŶƐĞƋƵĞŶƚůLJ͕
ƚŚĞďĂŶŬƐǁĞƌĞĞŶƟƌĞůLJ
ƵŶŝŶǀĞƐƚĂďůĞ͘
tĞŚĂǀĞƐŝŶĐĞĐŽŵĞĂůŽŶŐ
ǁĂLJ͘ƵƌŽƉĞĂŶĂŶĚh^ďĂŶŬƐ
ŚĂǀĞďĞĞŶŚĞĂǀŝůLJƉƵŶŝƐŚĞĚ͕
ǁŝƚŚƌĞŐƵůĂƚŽƌƐĐŽůůĞĐƟŶŐ
ŚƵŶĚƌĞĚƐŽĨďŝůůŝŽŶƐŽĨĚŽůůĂƌƐ
ŝŶĮŶĞƐ͘dŚĞŽĚĚͲ&ƌĂŶŬĐƚ
ŝŶƚŚĞh^ďƌŽƵŐŚƚĨĂƌͲƌĞĂĐŚŝŶŐ
ƌĞĨŽƌŵƐ͕ǁŝƚŚƟŐŚƚĞƌƌƵůĞƐ
ŐŽǀĞƌŶŝŶŐƚŚĞĂŵŽƵŶƚĂŶĚ
ƋƵĂůŝƚLJŽĨĐĂƉŝƚĂůƚŽǁĂƌĚŽī
ĂĨƵƚƵƌĞĐƌŝƐŝƐ͘
LET LOOSE FROM THE NOOSE
dŚĞƉĞƌŝŽĚŽĨƉƵŶŝƐŚŵĞŶƚŝƐ
36
| SHARES | 24 May 2018
ŶŽǁĞŶĚŝŶŐ͘dŚĞƌĞŐƵůĂƚŽƌLJ
ĞŶǀŝƌŽŶŵĞŶƚŝƐŵŽƌĞƐĞƩůĞĚ͕
ǁŝƚŚŵƵĐŚƐƚƌŝĐƚĞƌŽǀĞƌƐŝŐŚƚ͘
ŌĞƌĐŽŶƐŝĚĞƌĂďůĞĚĞůĂLJ͕ŽŶĞ
ŽĨƚŚĞĮŶĂůƉůĂŶŬƐŽĨŐůŽďĂů
ďĂŶŬŐŽǀĞƌŶĂŶĐĞǁĂƐĂŐƌĞĞĚ
ŝŶĞĐĞŵďĞƌʹƚŚĞƐŽͲĐĂůůĞĚ
ĂƐĞůϰƌƵůĞƐ͘
dŚĞŶĞǁĞŶǀŝƌŽŶŵĞŶƚ
ŶĞĐĞƐƐĂƌŝůLJĐŽŶƐƚƌĂŝŶƐďĂŶŬƐ͛
ĂĐƟǀŝƟĞƐďƵƚǁŝƚŚƚŚĞƌƵůĞƐŽĨ
“
Banks are now
in much better
shape
the game largely agreed, the
ďĂŶŬƐĐĂŶƉůĂŶĂĐĐŽƌĚŝŶŐůLJ͘
ĂŶŬƐĂƌĞŶŽǁŝŶŵƵĐŚďĞƩĞƌ
ƐŚĂƉĞ͘KǀĞƌƚŚĞƉĂƐƚĚĞĐĂĚĞ͕
ƚŚĞLJŚĂǀĞƌĞĐĂƉŝƚĂůŝƐĞĚƚŽ
ŝŶƐƵůĂƚĞĂŐĂŝŶƐƚĨƵƌƚŚĞƌĐƌŝƐĞƐ͘
tŝƚŚďĂĚĚĞďƚƐůĂƌŐĞůLJ
ǁƌŝƩĞŶĚŽǁŶŽƌĚŝƐƉŽƐĞĚŽĨ͕
ƚŚĞŝƌďĂůĂŶĐĞƐŚĞĞƚƐĂƌĞĂůƐŽ
ŵƵĐŚĐůĞĂŶĞƌ͘
ĚŵŝƩĞĚůLJ͕ƌĞƚƵƌŶƐŽŶĞƋƵŝƚLJ
are lower today than they were
ďĞĨŽƌĞƚŚĞĐƌŝƐŝƐ͘ƵƚƚŚĂƚ͛Ɛ
ďĞĐĂƵƐĞďĂŶŬƐŵƵƐƚĐĂƌƌLJŵŽƌĞ
ĞƋƵŝƚLJĂŶĚĨŽƌĞŐŽƚŚĞƌĞƚƵƌŶƐ
ŽĨƚŚĞŵŽƌĞƐƉĞĐƵůĂƟǀĞƉĂƌƚƐ
ŽĨƚŚĞŝƌďƵƐŝŶĞƐƐ͘KǀĞƌĂůů͕ƚŚĞ
ŽƵƚůŽŽŬĨŽƌĐĂƐŚƌĞƚƵƌŶƐĨƌŽŵ
ďĂŶŬƐƚŽĐŬƐŚĂƐŝŵƉƌŽǀĞĚ͘
INTEREST RATE BOOST
dŚĞŵĂĐƌŽĞĐŽŶŽŵŝĐ
MR MARKET
ROOM FOR RECOVERY
/ŶƚŚĞh^͕ŵƵĐŚŽĨƚŚŝƐŚĂƐďĞĞŶ
ĂĐŬŶŽǁůĞĚŐĞĚŝŶƐŚĂƌĞƉƌŝĐĞƐ͘
ŌĞƌƌĂůůLJŝŶŐŝŶĂŶƟĐŝƉĂƟŽŶ
ŽĨƚŚĞƐƉŽŝůƐŽĨĂdƌƵŵƉ
ƉƌĞƐŝĚĞŶĐLJ͕h^ďĂŶŬƐŚĂƌĞƐ
ĂƌĞĐůŽƐĞƚŽƚŚĞŝƌƉƌĞͲĐƌŝƐŝƐ
ŚŝŐŚƐ͘ƵƚŶŽƚĂůůďĂŶŬƐŚĂǀĞ
ƌĞĐŽǀĞƌĞĚĂƐŵƵĐŚ͘
dŚĞD^/ƵƌŽƉĞĂŶŬƐ/ŶĚĞdž
ŝƐƐƟůůŵŽƌĞƚŚĂŶϲϬйďĞůŽǁ
ŝƚƐϮϬϬϳƉŝŶŶĂĐůĞ͕ƉŽƚĞŶƟĂůůLJĂ
ƐŝnjĞĂďůĞŽƉƉŽƌƚƵŶŝƚLJ͘ĂŶŬƐĂƌĞ
ƚƌĂĚŝƟŽŶĂůůLJƚŚĞůĂƌŐĞƐƚƉĂƌƚŽĨ
ƚŚĞƐƚŽĐŬŵĂƌŬĞƚďƵƚŚĂǀĞďĞĞŶ
ƉůĂLJŝŶŐƐĞĐŽŶĚĮĚĚůĞƚŽƚĞĐŚ
ƐƚŽĐŬƐŝŶƌĞĐĞŶƚLJĞĂƌƐ͕ůĞĂǀŝŶŐ
ƉůĞŶƚLJŽĨƌŽŽŵƚŽĐĂƚĐŚƵƉ͘
FOUR BANKS IN FOCUS
So where do we see
ŽƉƉŽƌƚƵŶŝƟĞƐŝŶƚŚĞďĂŶŬŝŶŐ
ƐĞĐƚŽƌ͍tĞůů͕ŽŶĞŝƐƉĞƌŚĂƉƐ
ƚŚĞŵŽƐƚŝŶĨĂŵŽƵƐŶĂŵĞ
ŽĨƚŚĞĮŶĂŶĐŝĂůĐƌŝƐŝƐ͘ŌĞƌ
ĞdžƉĂŶĚŝŶŐĂŐŐƌĞƐƐŝǀĞůLJĂƚ
ƚŚĞƉĞĂŬŽĨƚŚĞŵĂƌŬĞƚ͕
Royal Bank of Scotland (RBS)
ďĞĐĂŵĞƚŚĞƉŽƐƚĞƌĐŚŝůĚ
ĨŽƌďĂŶŬŝŶŐĨĂŝůƵƌĞ͘ƵƚƚŚĞ
ĐŽŵƉĂŶLJŝƐŶŽǁŽŶŝƚƐǁĂLJƚŽ
ƉƵƫŶŐƚŚĞĐƌŝƐŝƐďĞŚŝŶĚŝƚ͘
450
ROYAL BANK OF SCOTLAND
400
350
300
250
200
150
2013 2014
2015
2016
2017
Z^ŚĂƐƐƵĐĐĞĞĚĞĚŝŶ
ĚĞůĞǀĞƌĂŐŝŶŐŝƚƐďĂůĂŶĐĞƐŚĞĞƚ
ĂŶĚƌĞĨŽĐƵƐŝŶŐŽŶŝƚƐĐŽƌĞh<
ŵĂƌŬĞƚĂŶĚŝƐĐůŽƐĞƚŽƐĞƩůŝŶŐ
ŽŶĞŽĨŝƚƐůĂƐƚŵĂũŽƌĮŶĞƐ͘
dŚĂƚĐůĞĂƌƐƚŚĞǁĂLJĨŽƌƚŚĞ
ĐŽŵƉĂŶLJƚŽƌĞƐƚĂƌƚĚŝǀŝĚĞŶĚƐ͘
/ƚƐůĂƚĞƐƚƌĞƐƵůƚƐƐŚŽǁĞĚĂ
ƚƌŝƉůŝŶŐŽĨƉƌŽĮƚƐ͕ƐƵŐŐĞƐƟŶŐ
ƌĞĂůƉƌŽŐƌĞƐƐ͘tĞĐĂƚĞŐŽƌŝƐĞ
ƚŚĞĐŽŵƉĂŶLJĂƐĂŶ͚ƵŐůLJ
ĚƵĐŬůŝŶŐ͛ʹĂƐƚŽĐŬǁŚŽƐĞ
ƚƌĂŶƐĨŽƌŵĂƟŽŶĐŽƵůĚƚĂŬĞƚŚĞ
ŵĂƌŬĞƚďLJƐƵƌƉƌŝƐĞ͘
ŶŽƚŚĞƌ͚ƵŐůLJĚƵĐŬůŝŶŐ͛ŝƐ
^ƵŵŝƚŽŵŽDŝƚƐƵŝ&ŝŶĂŶĐŝĂů
'ƌŽƵƉ͘:ĂƉĂŶ͛ƐďĂŶŬƐǁĞŶƚ
ƚŚƌŽƵŐŚƚŚĞŝƌŽǁŶĐƌŝƐŝƐŝŶƚŚĞ
ϭϵϵϬƐ͕ďƵƚĂƌĞŝŶŵƵĐŚďĞƩĞƌ
ƐŚĂƉĞƚŽĚĂLJ͘dŚĞLJƌĞŵĂŝŶ
ŽƵƚŽĨĨĂǀŽƵƌǁŝƚŚŝŶǀĞƐƚŽƌƐ
ďĞĐĂƵƐĞŽĨ:ĂƉĂŶ͛ƐŶĞŐĂƟǀĞ
ŝŶƚĞƌĞƐƚƌĂƚĞƐ͘ƵƚǁŝƚŚ
ĐŚĂŶŐĞĂĨŽŽƚŝŶ:ĂƉĂŶ͕ĂŶLJ
ŝŵƉƌŽǀĞŵĞŶƚŝŶƚŚĞĞĐŽŶŽŵLJ
ŝƐůŝŬĞůLJƚŽďĞŶĞĮƚŝƚƐĐŚĞĂƉůLJ
ǀĂůƵĞĚďĂŶŬƐ͘
4.00
INTESA SANPAOLO
Source: Thomson Reuters Datastream
• Royal Bank of Scotland
• Sumitomo Mitsui
Financial Group
• Intesa Sanpaolo
ͻŝƟnjĞŶƐ&ŝŶĂŶĐŝĂů
Source: Thomson Reuters Datastream
ĞŶǀŝƌŽŶŵĞŶƚŝƐĂůƐŽŵŽƌĞ
ĨĂǀŽƵƌĂďůĞ͘&ŽůůŽǁŝŶŐƚŚĞ
ĐƌŝƐŝƐ͕ŝŶƚĞƌĞƐƚƌĂƚĞƐǁĞƌĞĐƵƚ
ƚŽŚŝƐƚŽƌŝĐůŽǁƐƚŽƉƌŽƉƵƉƚŚĞ
ĞĐŽŶŽŵLJĂŶĚĂƐƐĞƚƉƌŝĐĞƐ͘EŽǁ
ƚŚĞLJĂƌĞƌŝƐŝŶŐĂŐĂŝŶʹĂůůŽǁŝŶŐ
ďĂŶŬƐƚŽǁŝĚĞŶŵĂƌŐŝŶƐŽŶ
ůĞŶĚŝŶŐ͘
ŌĞƌƐŝdžƌĂƚĞƌŝƐĞƐ͕ƚŚĞ
h^ŝƐǁĞůůŽŶŝƚƐǁĂLJʹĂŶĚ
where the US goes, the world
ŽŌĞŶĨŽůůŽǁƐ͘
ƵƌŽƉĞĐŽƵůĚďĞŶĞdžƚ͕ĂŶĚ
ĞǀĞŶƚŚĞĂŶŬŽĨ:ĂƉĂŶŵĂLJ
ůŽŽŬĂƚŵŽǀŝŶŐĂǁĂLJĨƌŽŵ
ŶĞŐĂƟǀĞŝŶƚĞƌĞƐƚƌĂƚĞƐ͘ZĂƚĞƐ
ĂƌĞƐƟůůǀĞƌLJůŽǁŝŶĂŚŝƐƚŽƌŝĐĂů
ĐŽŶƚĞdžƚďƵƚďĂŶŬƐĂƌĞŶŽƚƐŝƫŶŐ
ŽŶƚŚĞŝƌŚĂŶĚƐ͘/ŶƐƚĞĂĚ͕ŵŽƐƚ
ĂƌĞĨŽĐƵƐŝŶŐŽŶĐŽƐƚͲĐƵƫŶŐƚŽ
ŝŵƉƌŽǀĞƉƌŽĮƚĂďŝůŝƚLJ͘
dŚĞƉŽůŝƟĐĂůďĂĐŬĚƌŽƉ
ŝƐŚĞůƉŝŶŐƚŽŽ͘WŽƉƵůŝƐƚ
ŐŽǀĞƌŶŵĞŶƚƐĂƌĞǁŝůůŝŶŐƚŽ
ƐƉĞŶĚŵŽŶĞLJ͕ǁŚŝĐŚƐŚŽƵůĚ
ďĞŐŽŽĚĨŽƌďĂŶŬƐ͛ƉƌŽĮƚƐ͘/Ŷ
ƚŚĞh^͕ƉƌĞƐŝĚĞŶƚdƌƵŵƉŚĂƐ
ĐƵƚƚĂdžĞƐŚĞĂǀŝůLJ͘dŚŝƐƐŚŽƵůĚ
ŶŽƚŽŶůLJĨĂƩĞŶďĂŶŬƉƌŽĮƚƐ
ďƵƚĂůƐŽƉƵƚŵŽƌĞŵŽŶĞLJŝŶƚŽ
ĐŽŶƐƵŵĞƌƐ͛ƉŽĐŬĞƚƐ͕ǁŚŝĐŚŝŶ
ƚƵƌŶŚĞůƉƐƚŚĞďĂŶŬƐ͘
3.50
3.00
2.50
2.00
1.50
1.00
2013 2014
2015
2016
2017
Some of ^ĐŽƫƐŚ
Investment Trust’s (SCIN)
ŽƚŚĞƌďĂŶŬŝŶŐŚŽůĚŝŶŐƐŚĂǀĞ
ŵŽƌĞŝŵŵĞĚŝĂƚĞĂƩƌĂĐƟŽŶƐ͘
/ŶƚĞƐĂ^ĂŶƉĂŽůŽƐƵīĞƌĞĚ
ĚƵƌŝŶŐ/ƚĂůLJ͛ƐďĂĚͲĚĞďƚĐƌŝƐŝƐ
ďƵƚŝƚƐǁĞůůͲĐĂƉŝƚĂůŝƐĞĚďĂůĂŶĐĞ
ƐŚĞĞƚĂůůŽǁĞĚŝƚƚŽŶĂǀŝŐĂƚĞ
ƚŚĞĐƌŝƐŝƐƐĂĨĞůLJ͘/ŶƚĞƐĂŚĂƐ
ƐƵĐĐĞƐƐĨƵůůLJŽŋŽĂĚĞĚŵĂŶLJ
ŽĨŝƚƐŶŽŶͲƉĞƌĨŽƌŵŝŶŐůŽĂŶƐ
ĂŶĚŚĂƐŝŵƉƌŽǀĞĚŝƚƐĐŽƐƚ
ĞĸĐŝĞŶĐLJƚŽƉƌŽƚĞĐƚƉƌŽĮƚƐ
ĂŶĚŝƚƐĂƩƌĂĐƟǀĞĚŝǀŝĚĞŶĚ͘
&ŝŶĂůůLJ͕ŝƟnjĞŶƐ&ŝŶĂŶĐŝĂů
ŝƐĂh^ďĂŶŬƚŚĂƚƌĞŐĂŝŶĞĚ
ŝŶĚĞƉĞŶĚĞŶĐĞǁŚĞŶĨŽƌŵĞƌ
ƉĂƌĞŶƚĐŽŵƉĂŶLJZ^ƌĞƚƌĞĂƚĞĚ
ƚŽƚŚĞh<͘'ŝǀĞŶZ^͛Ɛ
ŶƵŵĞƌŽƵƐƉƌĞŽĐĐƵƉĂƟŽŶƐ
ĐůŽƐĞƌƚŽŚŽŵĞ͕ŝƚƐh^
ŽƉĞƌĂƟŽŶǁĂƐŶŽƚĞĸĐŝĞŶƚůLJ
ƌƵŶ͘dŚĞƐƉŝŶͲŽīĐƌĞĂƚĞĚ
ĂŶŽƉƉŽƌƚƵŶŝƚLJƚŽƌƵŶƚŚĞ
ďƵƐŝŶĞƐƐŵŽƌĞĞīĞĐƟǀĞůLJ͖
ĂŶĚŝƟnjĞŶƐŝƐƉĞƌĨŽƌŵŝŶŐ
ǁĞůůĂƐŝƚƐƚĞĂĚŝůLJŝŵƉƌŽǀĞƐ
ŝƚƐƉƌŽĮƚĂďŝůŝƚLJ͘
24 May 2018 | SHARES |
37
AEQUITAS
Insightful commentary on market issues
Four links in the global
financial market chain have
weakened: which is next?
What can investors learn from recent market movements?
T
his week’s column is indebted to two
charts from Fidelity’s vastly experienced
fund manager Ian Spreadbury at a recent
conference. This is not to put words into Mr
Spreadbury’s mouth – he needs no help on that
front – and any views expressed here are strictly
those of this column, but credit must be given
where credit is due.
dŚĞĮƌƐƚĐŚĂƌƚƐŚŽǁƐƚŚĞLJŝĞůĚŽŶƚŚĞ
benchmark 10-year US Treasury (US government
bond) which could be seen as a decisive breakout above the 3.05% level.
,^d,z/>KEϭϬͳzZh^dZ^hZ/^
DECISIVELY BROKEN OUT TO THE UPSIDE?
gap and greater supply means it may have to
ŽīĞƌĂŚŝŐŚĞƌĐŽƵƉŽŶƚŽƚĞŵƉƚďƵLJĞƌƐ͘
• The US Federal Reserve’s switch from
ƋƵĂŶƟƚĂƟǀĞĞĂƐŝŶŐ;YͿƚŽƋƵĂŶƟƚĂƟǀĞ
ƟŐŚƚĞŶŝŶŐ;YdͿ͘dŚĞ&ĞĚǁŝůůƌĞĚƵĐĞYďLJ
$30bn a month this quarter, $40bn a month
from July and $50bn a month from September.
dŚĞĞŶĚŽĨYƌĞŵŽǀĞƐĂŚƵŐĞďƵLJĞƌĨƌŽŵƚŚĞ
bond market just when supply is going up.
Where US 10-year yields end up remain to be
seen. Yet it may not be a coincidence that certain
ƌŝƐŬŝĞƌĂŶĚŵŽƌĞƐƉĞĐƵůĂƟǀĞĂƌĞĂƐŽĨƚŚĞĮŶĂŶĐŝĂů
markets appear to be coming under duress just
as the returns from a purportedly safe asset (and
one priced in the globe’s reserve currency for
ŐŽŽĚŵĞĂƐƵƌĞͿƐƚĂƌƚƚŽůŽŽŬŵŽƌĞƚĞŵƉƟŶŐ͘
FOUR QUICK HITS
/ŶƋƵŝĐŬƐƵĐĐĞƐƐŝŽŶ͕ďŝƚĐŽŝŶ͕ůŽǁͲǀŽůĂƟůŝƚLJƚƌĂĚŝŶŐ
ƐƚƌĂƚĞŐŝĞƐ͕ŚŝŐŚͲŇLJŝŶŐƚĞĐŚŶŽůŽŐLJƐƚŽĐŬƐĂŶĚ
now emerging markets (and especially emerging
market currencies) have at least stumbled or in
some cases been routed.
Source: Thomson Reuters Datastream
dŚĞƌĞĂƌĞƚŚƌĞĞƉŽƐƐŝďůĞĞdžƉůĂŶĂƟŽŶƐĨŽƌƚŚŝƐ
ĂƉƉĂƌĞŶƚƐŚŝŌŝŶďŽŶĚŵĂƌŬĞƚŵŽŵĞŶƚƵŵ͗
/dK/E,^dhD>E>KtͳsK>d/>/dz
STRATEGIES HAVE BEEN CAUGHT OUT
• &ŝdžĞĚͲŝŶĐŽŵĞŝŶǀĞƐƚŽƌƐĂƌĞƐƟůůǁĂƌLJŽĨƚŚĞ
ƉŽƚĞŶƟĂůĨŽƌŝŶŇĂƟŽŶƚŽƐƵƌƉƌŝƐĞƚŽƚŚĞ
upside, especially as oil prices march higher.
• ŶĂŶŶƵĂůh^ďƵĚŐĞƚĚĞĮĐŝƚƚŚĂƚŝƐĞdžƉĞĐƚĞĚ
to reach $804bn in the year to September
2018 and $981bn to September 2019,
compared to $665bn in 2017. The US
'ŽǀĞƌŶŵĞŶƚŚĂƐƚŽƐĞůůŵŽƌĞďŽŶĚƐƚŽĮůůƚŚĞ
38
| SHARES | 24 May 2018
Source: Thomson Reuters Datastream
Insightful commentary on market issues
The sudden reversals in the Turkish lira,
/ŶĚŽŶĞƐŝĂŶƌƵƉŝĂŚ͕DĞdžŝĐĂŶƉĞƐŽĂŶĚƌŐĞŶƟŶĞ
ƉĞƐŽĂůůƐƵŐŐĞƐƚŝŶǀĞƐƚŽƌƐĂƌĞ͕ƐůŽǁůLJ͕ƐƚĂƌƟŶŐƚŽ
ďĞĐŽŵĞŵŽƌĞƌŝƐŬĂǀĞƌƐĞ͕ĞƐƉĞĐŝĂůůLJĂŌĞƌƚŚĞŝƌ
experiences with bitcoin and trading the VIX
ŝŶĚĞdžĂŶĚĂŶŝŶŝƟĂůǁŽďďůĞŝŶƚĞĐŚ͘
TECH STOCKS ARE TRYING TO RECOVER THEIR
POISE AND EMERGING MARKET CURRENCIES
ARE COMING UNDER THE COSH
AEQUITAS
ĂŶĚĐĂƐŚŇŽǁƐƐƚĂƌƚƚŽĚŝŵŝŶŝƐŚ͘
And this is where Mr. Spreadbury’s second
chart comes in. It shows the US 10-year Treasury
yield minus the Fed Funds rate.
On the three occasions when the Fed’s target
rate has exceeded the 10-year Treasury yield
since 1990, a US recession quickly followed, in
1990-91, 2001-02 and 2007-08.
This indicator also proved accurate with the
double-dip downturn of 1979-1982 but the chart
below does not go back that far.
IF THE FED’S TARGET POLICY RATE EXCEEDS
d,ϭϬͳzZdZ^hZzz/>d,E,/^dKZz
SUGGESTS THE US ECONOMY COULD STUMBLE
Source: Thomson Reuters Datastream
Any chain is only as strong as its weakest link.
Whether this is a warning of further trouble to
come in more mainstream assets, such as UK and
h^ƐƚŽĐŬƐ͕ƌĞŵĂŝŶƐĂŶŽƉĞŶƋƵĞƐƟŽŶ͘zĞƚŶŽͲŽŶĞ
could have imagined that a downturn in Florida’s
Source: Thomson Reuters Datastream
housing market and the collapse of two obscure
ŚĞĚŐĞĨƵŶĚƐŝŶϮϬϬϳǁŽƵůĚďĞƚŚĞĮƌƐƚƐƚĂŐĞƐ
ŽĨĂƚǁŽͲLJĞĂƌĮŶĂŶĐŝĂůƉĂŶŝĐĂŶĚďĞĂƌŵĂƌŬĞƚ
dŚŝƐŝƐŶŽƚĂƉƌĞĚŝĐƟŽŶĨŽƌϮϬϭϴĂŶĚƚŚĞ
in share prices.
good news is that the US 10-year yield of
ϯ͘ϭϭйƐƟůůĐŽŵĨŽƌƚĂďůLJĞdžĐĞĞĚƐƚŚĞϭ͘ϳϱй&ĞĚ
DOMINO EFFECT
target rate.
None of this mean indices like the S&P 500 and
ƵƚŝĨƚŚĞ&ĞĚƐƟĐŬƐƚŽŝƚƐƐĐƌŝƉƚǁŝƚŚ
&d^ϭϬϬĂƌĞĚĞƐƟŶĞĚƚŽƉůƵŶŐĞƐŽŽŶďƵƚƚŚĞ
two or three more increases this year then
ĐŽŵďŝŶĂƟŽŶŽĨůŽǁǀŽůĂƟůŝƚLJ͕ůŽŌLJǀĂůƵĂƟŽŶƐ
investors need to keep a very close eye on
(especially in the US), and rising interest rates (at
both the Fed and the US bond market as
ůĞĂƐƚŝŶƚŚĞh^ͿŝƐĂƉŽƚĞŶƟĂůůLJƚƌŝĐŬLJŽŶĞ͘
the year develops.
The good news is that earnings forecasts
ĂƌĞƐƟůůďĞŝŶŐŵĞƚŽƌĞdžĐĞĞĚĞĚ͕ƐŽĞƐƟŵĂƚĞƐ
WHY IS THIS COLUMN
are rising.
CALLED AEQUITAS?
Real, near-term trouble for equity investors
could come in the form of a global economic
/ƚŝƐƚŚĞ>ĂƟŶǁŽƌĚ
slowdown – or even an actual downturn – as that
for equity and the
ǁŽƵůĚŚŝƚĐŽƌƉŽƌĂƚĞƉƌŽĮƚƐ͘
origin
of the modern
dŚĂƚŝŶƚƵƌŶǁŽƵůĚůĞĂǀĞǀĂůƵĂƟŽŶƐůŽŽŬŝŶŐƚŽŽ
word
in
both senses –
ƌŝĐŚ͕ďĂƐĞĚůĂƌŐĞůLJĂƐƚŚĞLJĂƌĞŽŶƚŚĞĂƐƐƵŵƉƟŽŶ
fairness
and the value
ƚŚĂƚƌĞĐŽƌĚĐŽƌƉŽƌĂƚĞƉƌŽĮƚŵĂƌŐŝŶƐǁŝůůƐƚĂLJ
of a company’s shares. By Russ Mould, investment
ŚŝŐŚŽƌŐŽŚŝŐŚĞƌ͕ĂŶĚĂůƐŽƉŽƚĞŶƟĂůůLJĞdžƉŽƐĞ
director, AJ Bell
dividends to cuts as companies see their earnings
24 May 2018 | SHARES |
39
MONEY MATTERS
Helping you with personal finance issues
Why you should avoid
‘lifestyle inflation’
Investing rather than spending extra cash could help you achieve your financial goals
e’ve all read stories
about people who
ĞĂƌŶƚƌŝƉůĞĮŐƵƌĞ
ƐĂůĂƌŝĞƐLJĞƚƐƟůůŵŽĂŶĂďŽƵƚƚŚĞ
ĚŝĸĐƵůƚLJŽĨƉĂLJŝŶŐďŝůůƐŽƌƐĂǀŝŶŐ
ƵƉĨŽƌƚŚĞĨƵƚƵƌĞ͘
/ĨLJŽƵ͛ƌĞŶŽƚůƵĐŬLJĞŶŽƵŐŚƚŽďĞ
ĂŚŝŐŚĞĂƌŶĞƌ͕LJŽƵŵŝŐŚƚǁŽŶĚĞƌ
ŚŽǁƚŚŝƐĐŽƵůĚƉŽƐƐŝďůLJŚĂƉƉĞŶ͘
ůĂƌŐĞƉĂƌƚŽĨŝƚŝƐĚŽǁŶ
ƚŽƐŽŵĞƚŚŝŶŐĐĂůůĞĚ͚ůŝĨĞƐƚLJůĞ
ŝŶŇĂƟŽŶ͛͘ƐƉĞŽƉůĞĞĂƌŶŵŽƌĞ
ŵŽŶĞLJƚŚĞLJƚĞŶĚƚŽďƵLJŵŽƌĞ
ĞdžƉĞŶƐŝǀĞƚŚŝŶŐƐ͕ƌĂƚŚĞƌƚŚĂŶ
ƐĂǀŝŶŐƚŚĞĞdžƚƌĂĐĂƐŚĨŽƌůŝĨĞ͛Ɛ
ĞŵĞƌŐĞŶĐŝĞƐŽƌƚŚĞŝƌƌĞƟƌĞŵĞŶƚ͘
It’s a trap that results in people
ƐƚƌƵŐŐůŝŶŐƚŽƉĂLJŽīĚĞďƚƐĂŶĚ
ĨĂŝůŝŶŐƚŽƌĞĂĐŚƚŚĞŝƌĮŶĂŶĐŝĂů
ŐŽĂůƐĂƐƐŽŽŶĂƐƚŚĞLJŚŽƉĞĚ͘
͚DĂŶLJƉĞŽƉůĞďĂƐĞƚŚĞŝƌ
W
ůŝĨĞƐƚLJůĞĂŶĚƚŚĞůĞǀĞůŽĨƚŚĞŝƌ
ƐƉĞŶĚŝŶŐĂƌŽƵŶĚƚŚĞŝƌŝŶĐŽŵĞ͘
They spend whatever they earn
ĂŶĚ͕ƋƵŝƚĞŽŌĞŶ͕ŐŽŝŶƚŽĚĞďƚ
ĂŶĚĞŶĚƵƉƐƉĞŶĚŝŶŐŵŽƌĞƚŚĂŶ
ƚŚĞLJĞĂƌŶ͕͛ƐĂLJƐWĂƚƌŝĐŬŽŶŶŽůůLJ͕
ĐĞƌƟĮĞĚĮŶĂŶĐŝĂůƉůĂŶŶĞƌĂƚ
ŚĂƐĞĚĞsĞƌĞ͘
͚/ƚŝƐƵŶĚĞƌƐƚĂŶĚĂďůĞƚŚĂƚƚŚŽƐĞ
ǁŚŽŚĂǀĞŝŶĐŽŵĞŝŶĞdžĐĞƐƐŽĨ
ƚŚĞŝƌďĂƐŝĐůŝǀŝŶŐĐŽƐƚƐǁĂŶƚƚŽ
ƐƉĞŶĚŵŽŶĞLJĂŶĚĞŶũŽLJƚŚĞŝƌ
ůŝĨĞƐƚLJůĞƚŽĚĂLJ͘,ŽǁĞǀĞƌ͕ŝŶƚŚĞ
ǁŽƌĚƐŽĨ:ŽŚŶ&<ĞŶŶĞĚLJ͕͞dŚĞ
ƟŵĞƚŽƌĞƉĂŝƌƚŚĞƌŽŽĨŝƐǁŚĞŶ
ƚŚĞƐƵŶŝƐƐŚŝŶŝŶŐ͛͘͟
IS IT REALLY THAT
WRONG TO ENJOY MY
NEWFOUND WEALTH?
zŽƵŵŝŐŚƚƚŚŝŶŬŝƚ͛ƐƉƌĞƩLJďŽƌŝŶŐ
As people earn more
money they tend to buy
more expensive things,
rather than saving the extra
cash for life’s emergencies
or their retirement
40
| SHARES | 24 May 2018
ƚŽƐƋƵŝƌƌĞůĂǁĂLJĞǀĞƌLJĞdžƚƌĂ
pound you earn when your
ǁĂŐĞƐŝŶĐƌĞĂƐĞ͕ďƵƚŝƚ͛ƐƌĞĂůůLJ
ŝŵƉŽƌƚĂŶƚƚŽƚƌLJƚŽďĂůĂŶĐĞLJŽƵƌ
ůŽŶŐͲƚĞƌŵƐĂǀŝŶŐŐŽĂůƐǁŝƚŚ
ƐƉĞŶĚŝŶŐŵŽŶĞLJƚŽĚĂLJ͘
ůƚŚŽƵŐŚLJŽƵŵĂLJŚĂǀĞĞdžĐĞƐƐ
ŝŶĐŽŵĞŶŽǁ͕ƚŚŝƐŵĂLJŶŽƚĂůǁĂLJƐ
ďĞƚŚĞĐĂƐĞ͚͘zŽƵŶĞĞĚƚŽďĞ
ƉƌĞƉĂƌĞĚĨŽƌǁŚĞŶLJŽƵƌŝŶĐŽŵĞ
ĨĂůůƐ͕ƉĞƌŚĂƉƐŝĨLJŽƵůŽƐĞLJŽƵƌ
ũŽďŽƌǁŚĞŶLJŽƵƌĞƟƌĞ͕ŽƌŝĨ
LJŽƵƌĞdžƉĞŶĚŝƚƵƌĞŝŶĐƌĞĂƐĞƐ
ĂŌĞƌďƵLJŝŶŐĂŚŽƵƐĞ͕ŚĂǀŝŶŐ
ĐŚŝůĚƌĞŶŽƌŐĞƫŶŐĚŝǀŽƌĐĞĚ͕͛
ĞdžƉůĂŝŶƐŽŶŶŽůůLJ͘
LJĞŶũŽLJŝŶŐƚŽĚĂLJĂƐǁĞůůĂƐ
ƉůĂŶŶŝŶŐĨŽƌƚŽŵŽƌƌŽǁ͕LJŽƵĐĂŶ
ŚĂǀĞŵŽƌĞĐŽŶĮĚĞŶĐĞƚŚĂƚLJŽƵƌ
ĨƵƚƵƌĞǁŝůůďĞĮŶĂŶĐŝĂůůLJƐĞĐƵƌĞ͘
ZĞƐĞĂƌĐŚƐƵŐŐĞƐƚƐƚŚĂƚƚŽ
ŐĞŶĞƌĂƚĞĂŵŽĚĞƐƚĂŶŶƵĂů
ƌĞƟƌĞŵĞŶƚŝŶĐŽŵĞŽĨάϭϬ͕ϬϬϬ
ĂďŽǀĞƚŚĞƐƚĂƚĞƉĞŶƐŝŽŶ͕LJŽƵ
need to have saved around
άϮϱϬ͕ϬϬϬʹĂŶĚƉŽƐƐŝďůLJŵŽƌĞƚŽ
ďĞŽŶƚŚĞƐĂĨĞƐŝĚĞ͘
HOW DO I AVOID
LIFESTYLE INFLATION?
džƉĞƌƚƐƌĞĐŬŽŶĞǀĞƌLJŽŶĞƐŚŽƵůĚ
ďƵŝůĚƵƉĂƐĂǀŝŶŐƐƉŽƚƚŚĂƚǁŝůů
ĐŽǀĞƌĨŽƵƌƚŽƐŝdžŵŽŶƚŚƐŽĨ
ĞƐƐĞŶƟĂůŽƵƚŐŽŝŶŐƐ͘dŚŝƐƐŚŽƵůĚ
ďĞŬĞƉƚŝŶĂŶĂĐĐĞƐƐŝďůĞƐĂǀŝŶŐƐ
ĂĐĐŽƵŶƚƐŽLJŽƵĐĂŶǁŝƚŚĚƌĂǁ
ŝƚŝŶƚŚĞĐĂƐĞŽĨĂƐŚŽƌƚͲƚĞƌŵ
ĞŵĞƌŐĞŶĐLJ͘
zŽƵƐŚŽƵůĚĂůƐŽďĞƉƵƫŶŐ
ŵŽŶĞLJĂǁĂLJĨŽƌLJŽƵƌůŽŶŐĞƌͲ
ƚĞƌŵĮŶĂŶĐŝĂůŶĞĞĚƐʹǁŚĞƚŚĞƌ
ƚŚĂƚ͛ƐďƵLJŝŶŐĂŚŽŵĞ͕ƉĂLJŝŶŐ
Helping you with personal finance issues
WHERE SHOULD I INVEST
MY PAY RISE?
/ĨLJŽƵŐĞƚĂƉĂLJƌŝƐĞLJŽƵƌĮƌƐƚ
ƐƚĞƉƐŚŽƵůĚďĞƚŽƉĂLJŽīĂŶLJ
ĞdžƉĞŶƐŝǀĞĚĞďƚƐ͘zŽƵƐŚŽƵůĚƚŚĞŶ
ůŽŽŬƚŽďƵŝůĚƵƉĞŵĞƌŐĞŶĐLJĐĂƐŚ
THREE
GOLDEN
RULES
1
HAVE SOME CASH
FOR EMERGENCIES
2
TRY TO AVOID INCREASING
YOUR SPENDING HABITS
IN LINE WITH PAY RISES
3
PRIORITISE DEBT
REPAYMENTS WHEN
YOU GET A PAY RISE
“
Setting up a direct
debt into an ISA
and joining your
workplace pension
scheme will ensure
money is diverted
into investment
vehicles before you
have a chance to
spend it
“
LJŽƵƌĐŚŝůĚƌĞŶ͛ƐƵŶŝǀĞƌƐŝƚLJĨĞĞƐŽƌ
ƉƌĞƉĂƌŝŶŐĨŽƌƌĞƟƌĞŵĞŶƚ͘
^ĞƫŶŐƵƉĂĚŝƌĞĐƚĚĞďƚŝŶƚŽĂŶ
/^ĂŶĚũŽŝŶŝŶŐLJŽƵƌǁŽƌŬƉůĂĐĞ
ƉĞŶƐŝŽŶƐĐŚĞŵĞǁŝůůĞŶƐƵƌĞ
ƚŚĞŵŽŶĞLJŝƐĚŝǀĞƌƚĞĚŝŶƚŽ
ŝŶǀĞƐƚŵĞŶƚǀĞŚŝĐůĞƐďĞĨŽƌĞLJŽƵ
ŚĂǀĞĂĐŚĂŶĐĞƚŽƐƉĞŶĚŝƚ͘
dŽŵ^ĞůďLJ͕ƐĞŶŝŽƌĂŶĂůLJƐƚĂƚ
:Ğůů͕ƐƵŐŐĞƐƚƐƐƉůŝƫŶŐLJŽƵƌ
ŵŽŶĞLJŝŶƚŽĚŝīĞƌĞŶƚƉŽƚƐ͗
ƚŚŽƐĞĨŽƌƐŚŽƌƚͲƚĞƌŵƐƉĞŶĚŝŶŐ
ĂŶĚƚŚŽƐĞĨŽƌůŽŶŐĞƌͲƚĞƌŵ
ƐƉĞŶĚŝŶŐ͘
͚LJĚŽŝŶŐƚŚŝƐLJŽƵĐĂŶĂǀŽŝĚ
ƐĞĞŝŶŐŝƚĚŝƐĂƉƉĞĂƌŝŶƚŽƚŚĞ
ƉŽĐŬĞƚƐŽĨŚŝŐŚƐƚƌĞĞƚƌĞƚĂŝůĞƌƐŽƌ
LJŽƵƌůŽĐĂůƉƵď͕͛ŚĞƐĂLJƐ͘
͚>ƵĐŬŝůLJƚŚĞƌĞĂƌĞůŽĂĚƐŽĨ
handy apps and online tools to
ŚĞůƉLJŽƵďƵĚŐĞƚĞīĞĐƟǀĞůLJ͘/ƚ͛Ɛ
ĂůƐŽǁŽƌƚŚƐƉĞŶĚŝŶŐĂďŝƚŽĨƟŵĞ
ƚŚŝŶŬŝŶŐĂďŽƵƚLJŽƵƌŐŽĂůƐƚŽĚĂLJ
ĂŶĚĨŽƌƌĞƟƌĞŵĞŶƚ͕ĂŶĚƐĞĞŝŶŐ
ŚŽǁŵƵĐŚŵŽŶĞLJLJŽƵ͛ůůŶĞĞĚƚŽ
ĞŶũŽLJďŽƚŚ͛͘
^ŽƉŚŝĞ<ŝůǀĞƌƚ͕ĂƌĞůĂƟŽŶƐŚŝƉ
ŵĂŶĂŐĞƌĂƚ^ĞǀĞŶ/ŶǀĞƐƚŵĞŶƚ
DĂŶĂŐĞŵĞŶƚ͕ƐƵŐŐĞƐƚƐ
ƌĞǀŝĞǁŝŶŐLJŽƵƌďƵĚŐĞƚĂƚůĞĂƐƚ
ŽŶĐĞĂLJĞĂƌƚŽǁŽƌŬŽƵƚŚŽǁ
ŵƵĐŚLJŽƵ͛ƌĞƐƉĞŶĚŝŶŐĂŶĚ
ǁŚĂƚLJŽƵĐĂŶĐƵƚďĂĐŬŽŶ͘
&ŽƌĞdžĂŵƉůĞ͕LJŽƵŵŝŐŚƚŚĂǀĞ
ƐƵďƐĐƌŝƉƟŽŶƐLJŽƵĚŽŶ͛ƚƵƐĞ
ĂŶLJŵŽƌĞŽƌďĞĂďůĞƚŽƐǁŝƚĐŚƚŽ
ĐŚĞĂƉĞƌŝŶƐƵƌĂŶĐĞƉŽůŝĐŝĞƐ͘
͚^ĞĞǁŚĞƌĞLJŽƵƌŵŽŶĞLJŝƐ
ŐŽŝŶŐĂŶĚǁŚĞƌĞƚŚĞƌĞĂƌĞĂƌĞĂƐ
ƚŚĂƚLJŽƵĐĂŶŵĂŬĞƐĞŶƐŝďůĞĐƵƚƐ
ʹůŝŬĞĐƵƫŶŐŽƵƚƐŽŵĞŽĨƚŚĞ
ƚĂŬĞĂǁĂLJƐ͕͛<ŝůǀĞƌƚƐĂLJƐ͘
MONEY MATTERS
ƐĂǀŝŶŐƐ͕ĂŶĚďĞLJŽŶĚƚŚŝƐŝŶǀĞƐƚ
ŝŶůŽŶŐĞƌͲƚĞƌŵǀĞŚŝĐůĞƐƐƵĐŚĂƐ
ƐƚŽĐŬƐĂŶĚƐŚĂƌĞƐ/^Ɛ͕>ŝĨĞƟŵĞ
/^ƐĂŶĚƉĞŶƐŝŽŶƐ͘
dŚĞƌĞĂƌĞŚƵŐĞŝŶĐĞŶƟǀĞƐŝŶ
ƉůĂĐĞƚŽĞŶĐŽƵƌĂŐĞLJŽƵƚŽƐĂǀĞ
ĨŽƌLJŽƵƌĨƵƚƵƌĞĂŶĚŝƚŝƐǁĞůů
ǁŽƌƚŚŵĂŬŝŶŐƚŚĞŵŽƐƚŽĨƚŚĞŵ͘
WĞŶƐŝŽŶƐŽīĞƌĂďŽŶƵƐƚŚƌŽƵŐŚ
ƚĂdžƌĞůŝĞĨŽĨĂƚůĞĂƐƚϮϱйŽŶ
ƚŚĞŵŽŶĞLJLJŽƵƉĂLJŝŶ͕ǁŚŝůĞĂ
ƋƵĂƌƚĞƌŽĨƚŚĞŵŽŶĞLJLJŽƵƚĂŬĞ
ŽƵƚĂŌĞƌĂŐĞϱϱŝƐƚĂdžͲĨƌĞĞ͘
DŽŶĞLJŝŶƉĞŶƐŝŽŶƐŐƌŽǁƐĨƌĞĞ
ĨƌŽŵƚĂdž͕ŵĞĂŶŝŶŐLJŽƵŚĂǀĞ
ƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽĐŽŵďĂƚƚŚĞ
ƌĂǀĂŐĞƐŽĨŝŶŇĂƟŽŶĂŶĚƐƚƚŚĞ
ǀĂůƵĞŽĨLJŽƵƌƉŽƚŽǀĞƌƟŵĞ͘
/^ƐĂůƐŽŽīĞƌƚĂdžͲĨƌĞĞŐƌŽǁƚŚ
ĂŶĚLJŽƵĐĂŶǁŝƚŚĚƌĂǁŵŽŶĞLJ
ƚĂdžͲĨƌĞĞŝĨLJŽƵŶĞĞĚƚŽƉĂLJĨŽƌ
ĂŶLJƵŶĞdžƉĞĐƚĞĚŽƵƚŐŽŝŶŐƐ͘
&ŽƌƐŚŽƌƚͲƚĞƌŵĮŶĂŶĐŝĂůŐŽĂůƐ͕
ůŝŬĞďƵLJŝŶŐĂŚŽƵƐĞŝŶƚŚƌĞĞ
LJĞĂƌƐ͛ƟŵĞ͕ŝƚŝƐƵƐƵĂůůLJďĞƩĞƌƚŽ
ƉƵƚŵŽŶĞLJŝŶƚŽĂĐĂƐŚƐĂǀŝŶŐƐ
ĂĐĐŽƵŶƚ͘zŽƵĚŽŶ͛ƚǁĂŶƚƚŽƌŝƐŬ
LJŽƵƌŵŽŶĞLJďĞŝŶŐĚĞƉůĞƚĞĚďLJĂ
ƐƚŽĐŬŵĂƌŬĞƚƚƵŵďůĞũƵƐƚďĞĨŽƌĞ
LJŽƵǁŝƚŚĚƌĂǁŝƚ͘
&ŽƌůŽŶŐĞƌͲƚĞƌŵŐŽĂůƐ͕ƐƵĐŚ
ĂƐƌĞƟƌĞŵĞŶƚƉůĂŶŶŝŶŐ͕LJŽƵĐĂŶ
ƉƌŽďĂďůLJĂīŽƌĚƚŽƚĂŬĞŽŶŵŽƌĞ
ƌŝƐŬďLJŝŶǀĞƐƟŶŐŝŶƐƚŽĐŬƐĂŶĚ
ƐŚĂƌĞƐ͘
HOW MUCH
SHOULD I INVEST?
/ƚ͛ƐĂŐŽŽĚŝĚĞĂƚŽĂŝŵƚŽŝŶǀĞƐƚ
ĂĐĞƌƚĂŝŶƉĞƌĐĞŶƚĂŐĞŽĨLJŽƵƌ
ƐĂůĂƌLJĞĂĐŚŵŽŶƚŚĂƐŽƉƉŽƐĞĚƚŽ
ĂĮdžĞĚĂŵŽƵŶƚ͘dŚŝƐŝƐďĞĐĂƵƐĞ
ĂƐLJŽƵƌĞĂƌŶŝŶŐƐƌŝƐĞ͕ƐŽĚŽĞƐ
ƚŚĞĂŵŽƵŶƚLJŽƵƉĂLJŝŶƚŽLJŽƵƌ
ƐĂǀŝŶŐƐƉŽƚ͘
͚zŽƵĐŽƵůĚŐŽĨƵƌƚŚĞƌĂŶĚ
ŝŶĐƌĞĂƐĞƚŚĞƉĞƌĐĞŶƚĂŐĞĂŵŽƵŶƚ
LJŽƵƐĂǀĞĞĂĐŚƟŵĞLJŽƵŐĞƚĂƉĂLJ
ƌŝƐĞ͕͛ƐĂLJƐ^ĞůďLJ͘;WͿ
24 May 2018 | SHARES |
41
NEW TAX YEAR MEANS NEW INVESTMENT OPPORTUNITIES
Are you looking for new companies to invest in? Come and join Shares at its evening event in London on
Wednesday 6 June 2018 and meet directors from Diurnal, Midatech Pharma and NetScientific.
Sponsored by
London – Wednesday 6 June 2018
Companies presenting
Diurnal Martin Whitaker, CEO
Founded in 2004, Diurnal is a UK-based, globally-focused specialty pharma company developing high quality products for
the life-long treatment of chronic endocrine conditions. It is committed to addressing major unmet clinical and patient needs
in hormone replacement, initially by developing and marketing products for the rare orphan diseases Congenital Adrenal
Hyperplasia (CAH) and Adrenal Insufficiency (AI).
Midatech Pharma Speaker TBC
Midatech is a nanomedicine company focused on the development and commercialisation of multiple, high-value, targeted
therapies for major diseases with unmet medical need. It is advancing a pipeline of novel clinical and pre-clinical product
candidates based on its proprietary drug conjugate and sustained release delivery platforms with a clear focus on the key
therapeutic areas of diabetes, cancer and neuroscience/ophthalmology.
NetScientific Francois Martelet, CEO
NetScientific is a biomedical and transatlantic healthcare technology group with an investment strategy focused on sourcing,
funding and commercialising technologies that significantly improve the health and well-being of people with chronic
diseases. NetScientific funds, develops and manages early/mid-stage healthcare technology companies sourced from strategic
partnerships and relationships in USA and Europe with a primary focus on Digital health, Diagnostics and Therapeutics. These
represent highly attractive growth markets where breakthrough technology solutions are in high demand.
Follow this link www.sharesmagazine.co.uk/events for full details.
REGISTER FOR YOUR COMPLIMENTARY TICKET TODAY
During the event and afterwards over drinks, investors
will have the chance to:
Discover new investment opportunities
Event details
Location: Novotel Tower Bridge,
London EC3N 2NR
Registration 18:00
Presentations to start at 18:30
Complimentary drinks and buffet available after the
presentations
Get to know the companies better
Contact
Talk with the company directors
and other investors
Chris Williams, Spotlight Manager
chris.williams@sharesmagazine.co.uk
020 7378 4402
Register free now
www.sharesmagazine.co.uk/events
LARGER COMPANIES
Euromoney is reinventing
itself as a data services group
The company has the balance sheet to transform its business profile with M&A
A
hZKDKEz͗&/EE/>WZK&/>
ĂůǁĂLJƐŚĂǀĞĂƐƐĞƚƐǁŚŝĐŚŽǀĞƌƉĞƌĨŽƌŵĂŶĚ
ƵŶĚĞƌƉĞƌĨŽƌŵ͘tŚŝůĞǁŝƚŚĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚ
ǁĞĂƌĞǁĂŝƟŶŐŽŶĂƌĞĐŽǀĞƌLJ͕ƚŚĞŐƌŽǁƚŚŽŶƚŚĞ
ƉƌŝĐŝŶŐƐŝĚĞŝƐƐŽŵĞƚŚŝŶŐǁĞĐĂŶĐŽŶƚƌŽů͛͘
dŚĞƌĞĂƌĞĂĐŽƵƉůĞŽĨŝƐƐƵĞƐǁŚŝĐŚĐůŽƵĚƚŚĞ
ŝŶǀĞƐƚŵĞŶƚĐĂƐĞ͘&ŝƌƐƚůLJ͕ĂŝůLJDĂŝůΘ'ĞŶĞƌĂůdƌƵƐƚ
;D'dͿƐƟůůŚĂƐĂϰϵйƐƚĂŬĞĂŶĚŚĂƐƉƌĞǀŝŽƵƐůLJ
ƐŽůĚƐŚĂƌĞƐ͘dŚŝƐŽǀĞƌŚĂŶŐĐŽƵůĚǁĞŝŐŚŽŶƚŚĞ
ƐŚĂƌĞƐƵŶƟůŝƚŝƐƌĞƐŽůǀĞĚŽŶĞǁĂLJŽƌĂŶŽƚŚĞƌ͘
dŚĞƌĞĐĞŶƚĮƌƐƚŚĂůĨƌĞƐƵůƚƐŐƵŝĚĞĚĨŽƌĂŶ
ŝŶĐƌĞĂƐĞĚƚĂdžƌĂƚĞ͘dŚŝƐƌĞůĂƚĞƐƚŽƚŚĞƌĞĐĞŶƚh^ƚĂdž
ƌĞĨŽƌŵƐǁŚŝĐŚĂƐǁĞůůĂƐĐƵƫŶŐƚŚĞŚĞĂĚůŝŶĞƌĂƚĞ
ŽĨĐŽƌƉŽƌĂƟŽŶƚĂdžĂůƐŽƌĞĚƵĐĞĚƚŚĞĚĞĚƵĐƟŽŶƐ
ĂǀĂŝůĂďůĞŽŶƚŚĞĐŽƐƚŽĨĂĐƋƵŝƐŝƟŽŶƐ͕ƐŽŵĞƚŚŝŶŐ
ĨƌŽŵǁŚŝĐŚƵƌŽŵŽŶĞLJŚĂƐŚŝƐƚŽƌŝĐĂůůLJďĞŶĞĮƚĞĚ͘
ƚάϭϯ͘ϮϮƚŚĞƐŚĂƌĞƐƚƌĂĚĞŽŶϭϳ͘ϳƟŵĞƐ
ĐŽŶƐĞŶƐƵƐ^ĞƉƚĞŵďĞƌϮϬϭϵĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ͘
ŶĂůLJƐƚ&ŝŽŶĂKƌĨŽƌĚͲtŝůůŝĂŵƐĨƌŽŵƌĞƐĞĂƌĐŚŐƌŽƵƉ
ĚŝƐŽŶƐĂLJƐƵƌŽŵŽŶĞLJƚƌĂĚĞƐŽŶĂŶĂƉƉƌŽdžŝŵĂƚĞ
ϱйĚŝƐĐŽƵŶƚƚŽƉĞĞƌƐ͕ƌĞŇĞĐƟŶŐĐŽŶĐĞƌŶƐŽǀĞƌƚŚĞ
ŽƵƚůŽŽŬĨŽƌƚŚĞĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚƐĞĐƚŽƌ͘
͚,ŽǁĞǀĞƌ͕ƚŚĞŐƌŽƵƉŚĂƐƐƚƌŽŶŐĐĂƐŚŇŽǁ
ĐŚĂƌĂĐƚĞƌŝƐƟĐƐĂŶĚĐĂƉĂĐŝƚLJĨŽƌĞĂƌŶŝŶŐƐͲĞŶŚĂŶĐŝŶŐ
DΘ͕͛ƐŚĞĂĚĚƐ͘;d^Ϳ
ZsEh
WZͲdyWZK&/d
ϮϬϭϳĂ
άϰϮϴ͘ϰŵ
άϭϬϲ͘ϱŵ
ϮϬϭϴĞ
άϰϭϬ͘ϰŵ
άϭϬϯ͘ϯŵ
1400
1300
ϮϬϭϵĞ
άϰϬϰ͘ϲŵ
άϭϬϯ͘ϯŵ
ϮϬϮϬĞ
άϰϭϵ͘ϭŵ
άϭϬϵ͘ϱŵ
^ŽƵƌĐĞ͗ŽŶƐĞŶƐƵƐĨŽƌĞĐĂƐƚƐͬZĞƵƚĞƌƐ͘;ϮϬϭϳĂĐƚƵĂůĮŐƵƌĞƐͿ
EŽƚĞƚŚĂƚƵƌŽŵŽŶĞLJŚĂƐďĞĞŶƐĞůůŝŶŐĂƐƐĞƚƐǁŚŝĐŚƉĂƌƚůLJ
ĞdžƉůĂŝŶƐǁŚLJĞĂƌŶŝŶŐƐĂƌĞĞdžƉĞĐƚĞĚƚŽƐůŝƉŝŶϮϬϭϴ
EUROMONEY INSTITUTIONAL INVESTOR
FTSE ALL SHARE
Source: Thomson Reuters Datastream
ƐƚƌŽŶŐďĂůĂŶĐĞƐŚĞĞƚŽīĞƌƐďƵƐŝŶĞƐƐͲƚŽͲ
ďƵƐŝŶĞƐƐƉƵďůŝƐŚĞƌƵƌŽŵŽŶĞLJ/ŶƐƟƚƵƟŽŶĂů
/ŶǀĞƐƚŽƌ;ZDͿƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽĐŽŶƟŶƵĞ
ŝƚƐƐŚŝŌƚŽǁĂƌĚƐĨĂƐƚŐƌŽǁŝŶŐĚĂƚĂƐĞƌǀŝĐĞƐĂŶĚ
ĂǁĂLJĨƌŽŵŝƚƐƚƌĂĚŝƟŽŶĂůĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚďĂƐĞ͘
/ŶƚŚĞƐŝdžŵŽŶƚŚƐƚŽϯϭDĂƌĐŚƚŚĞάϭ͘ϰϱďŶ
ĐŽŵƉĂŶLJĞŶũŽLJĞĚϭϬйƌĞǀĞŶƵĞŐƌŽǁƚŚŝŶŝƚƐ
ƉƌŝĐŝŶŐ͕ĚĂƚĂĂŶĚŵĂƌŬĞƚŝŶƚĞůůŝŐĞŶĐĞĂƌŵĂŶĚ
ϭϱйƌĞǀĞŶƵĞŐƌŽǁƚŚĨŽƌŝƚƐĞǀĞŶƚƐ͘,ŽǁĞǀĞƌ͕ŝƚƐ
ĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚďƵƐŝŶĞƐƐ͕ƐƉůŝƚĞǀĞŶůLJďĞƚǁĞĞŶ
/ŶƐƟƚƵƟŽŶĂů/ŶǀĞƐƚŽƌŵĂŐĂnjŝŶĞĂŶĚŝƚƐǀĂƌŝŽƵƐ
ŽīƐŚŽŽƚƐĂŶĚŝƚƐŝŶǀĞƐƚŵĞŶƚƌĞƐĞĂƌĐŚŽƵƞŝƚ͕
ƐĂǁƌĞǀĞŶƵĞƐůŝƉďLJϱй͘
͕ŝŶƉĂƌƟĐƵůĂƌ͕ŚĂƐďĞĞŶĂīĞĐƚĞĚďLJĐŽƐƚ
ĐƵƫŶŐŝŶƚŚĞĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚŝŶĚƵƐƚƌLJĂŶĚ
ĮŶĂŶĐĞĚŝƌĞĐƚŽƌŽůŝŶ:ŽŶĞƐƚĞůůƐ^ŚĂƌĞƐƚŚĞŶĞǁ
DŝĮĚ//ƌƵůĞƐĂŝŵĞĚĂƚŝŶĐƌĞĂƐŝŶŐƚƌĂŶƐƉĂƌĞŶĐLJŝŶƚŚĞ
ĮŶĂŶĐŝĂůƐĞĐƚŽƌŚĂǀĞŵĞƌĞůLJĂĐĐĞůĞƌĂƚĞĚƚŚŝƐƉƌŽĐĞƐƐ͘
dŚƌŽƵŐŚĂƐĞƌŝĞƐŽĨĂĐƋƵŝƐŝƟŽŶƐĂŶĚĚŝƐƉŽƐĂůƐ͕
ƚŚĞĐŽŵƉĂŶLJŚĂƐƌĞĚƵĐĞĚĚĞďƚƚŽũƵƐƚάϯϳŵĂŶĚ
ƚŚĞƐĂůĞŽĨŝƚƐ'ůŽďĂůDĂƌŬĞƚƐ/ŶƚĞůůŝŐĞŶĐĞƵŶŝƚ͕
ǁŚŝĐŚĐŽŵƉůĞƚĞĚŝŶƉƌŝů͕ŝƐĞdžƉĞĐƚĞĚƚŽƉƵƐŚƚŚĞ
ĐŽŵƉĂŶLJƚŽĂŶĞƚĐĂƐŚƉŽƐŝƟŽŶŽĨάϭϬϯŵ͘
dŚŝƐĐĂƐŚƐƚƌĞŶŐƚŚƉƌŽǀŝĚĞƐƚŚĞĮƌĞƉŽǁĞƌƚŽ
ĐŽŶƟŶƵĞƌĞŵŽĚĞůůŝŶŐƚŚĞĐŽŵƉĂŶLJŝŶĐůƵĚŝŶŐ
ĂĚĞƐŝƌĞƚŽŐƌŽǁŽŶƚŚĞƉƌŝĐŝŶŐĂŶĚĚĂƚĂƐŝĚĞ͘
ƵƌŽŵŽŶĞLJƉƌŽǀŝĚĞƐƉƌŝĐĞƐĨŽƌŽƉĂƋƵĞŵĂƌŬĞƚƐ
ƵƐŝŶŐƚƌĂĚŝƟŽŶĂůũŽƵƌŶĂůŝƐŵƚŽĮŶĚŽƵƚǁŚĂƚƉĂƌƟĞƐ
ĂƌĞƉĂLJŝŶŐĨŽƌĚŝīĞƌĞŶƚĐŽŵŵŽĚŝƟĞƐ͕ĨŽƌĞdžĂŵƉůĞ͘
:ŽŶĞƐƐĂLJƐ͚͗/ŶĂƉŽƌƞŽůŝŽďƵƐŝŶĞƐƐLJŽƵǁŝůů
Rebased to first
1200
1100
1000
900
800
2016
2017
2018
24 May 2018 | SHARES |
43
SMALLER COMPANIES
LoopUp hopes to enjoy
network effect boost with
£61m acquisition
Remote conferencing tie-up promises faster growth
Z
44
| SHARES | 24 May 2018
>ŽŽƉhƉ͛ƐŬĞLJĂĚǀĂŶƚĂŐĞŝƐĂƐƚƌĞĂŵůŝŶĞĚƐĞƌǀŝĐĞ
ĨŽƌďŽƚŚŚŽƐƚƐĂŶĚƉĂƌƟĐŝƉĂŶƚƐƚŚĂƚŶŽƚŽŶůLJǁŽƌŬƐ
ǁĞůůďƵƚŝƐŝŶƚƵŝƟǀĞĂŶĚĞĂƐLJƚŽƵƐĞ͘
dŚĞĐŽŵƉĂŶLJŚĂƐĂŶĞŶƚĞƌƉƌŝƐĞĨŽĐƵƐǁŝƚŚ
ŽǀĞƌϮ͕ϬϬϬĐƵƐƚŽŵĞƌƐ͕ŝŶĐůƵĚŝŶŐŵŽŶĞLJƚƌĂŶƐĨĞƌ
ďƵƐŝŶĞƐƐdƌĂǀĞůĞdžĂŶĚĚƌŝŶŬƐŵĂŬĞƌ'Ăƌƌ;'Ϳ͘
dŚŝƐĐůŝĞŶƚůŝƐƚǁŝůůďĞďŽůƐƚĞƌĞĚďLJƚŚĞůŝŬĞƐŽĨ
ĂƐLJ:Ğƚ;:Ϳ͕ĞďĞŶŚĂŵƐ;ͿĂŶĚĂĐĐŽƵŶƟŶŐ
ĮƌŵKǁŚŝĐŚĂƌĞĐƵƌƌĞŶƚDĞĞƟŶŐŽŶĞƵƐĞƌƐ͘
>ŽŽƉhƉũŽŝŶĞĚ/DŽŶϮϰƵŐƵƐƚϮϬϭϲ͕ƌĂŝƐŝŶŐ
ŐƌŽƐƐƉƌŽĐĞĞĚƐŽĨάϴ͘ϱŵĂƚϭϬϬƉƉĞƌƐŚĂƌĞ͘
dŚŝƐŐƌŽǁƚŚĨƵŶĚŝŶŐǁĂƐĞĂƌŵĂƌŬĞĚĨŽƌƉƌŽĚƵĐƚ
ƵƉŐƌĂĚĞƐĂŶĚďƵŝůĚŝŶŐĂŶĞǁŽŶůŝŶĞƐĂůĞƐĐŚĂŶŶĞů͘
dŚĞĐŽŵƉĂŶLJǁĂƐǁŽƌƚŚĂƌŽƵŶĚάϰϬŵĂƚƚŚĞƟŵĞ
ŽĨůŝƐƟŶŐĂŶĚŝƐŶŽǁǀĂůƵĞĚĂƚάϮϬϲŵ͘
&ƵůůLJĞĂƌƌĞƐƵůƚƐĨŽƌϮϬϭϳƐŚŽǁĞĚƌĞǀĞŶƵĞƵƉ
ϮϵйƚŽάϭϳ͘ϱŵĂŶĚĞĂƌŶŝŶŐƐďĞĨŽƌĞŝŶƚĞƌĞƐƚ͕ƚĂdž͕
ĚĞƉƌĞĐŝĂƟŽŶĂŶĚĂŵŽƌƟƐĂƟŽŶ;/dͿƵƉϭϲϭй
ƚŽάϯ͘ϱŵ͘dŚĞƐĞĮŐƵƌĞƐĞdžĐůƵĚĞĂĚŝƐĐŽŶƟŶƵĞĚd
ƚĞĐŚŶŽůŽŐLJůŝĐĞŶƐŝŶŐďƵƐŝŶĞƐƐ͘;^&Ϳ
500
450
400
350
300
250
200
150
100
Source: Thomson Reuters Datastream
ĞŵŽƚĞŵĞĞƟŶŐƐƉůĂƞŽƌŵƉƌŽǀŝĚĞƌ
>ŽŽƉhƉ;>KKW͗/DͿŚĂƐůĂŝĚŽƵƚƌĂŵƉĂŶƚ
ŐƌŽǁƚŚĂŵďŝƟŽŶƐǁŝƚŚĂƉŽƚĞŶƟĂůůLJ
ƚƌĂŶƐĨŽƌŵĂƟŽŶĂůĂĐƋƵŝƐŝƟŽŶ͘
dŚĞĐŽŵƉĂŶLJŚĂƐƐƚƌƵĐŬĂĚĞĂůƚŽďƵLJƉƌŝǀĂƚĞ
ĞƋƵŝƚLJͲďĂĐŬĞĚƉĞĞƌDĞĞƟŶŐŽŶĞĨŽƌάϲϭ͘ϰŵĐĂƐŚ͘
dŚĞĂĐƋƵŝƐŝƟŽŶ͕ŝĨĂƉƉƌŽǀĞĚďLJƐŚĂƌĞŚŽůĚĞƌƐŝŶ
ĂǀŽƚĞŽŶϭ:ƵŶĞ͕ǁŝůůŵŽƌĞƚŚĂŶĚŽƵďůĞ>ŽŽƉͲhƉ͛Ɛ
ĂŶŶƵĂůƌĞǀĞŶƵĞƐƚŽŐƌĞĂƚĞƌƚŚĂŶάϰϬŵĂƐǁĞůůĂƐ
ĂĐĐĞůĞƌĂƚĞŽƌŐĂŶŝĐŐƌŽǁƚŚĚŽǁŶƚŚĞůŝŶĞ͘
/ƚďĞůŝĞǀĞƐƚŚĞĂĐƋƵŝƐŝƟŽŶǁŝůůŐŝǀĞŝƚŐƌĞĂƚĞƌ
ďƵLJŝŶŐƉŽǁĞƌǁŝƚŚƐƵƉƉůŝĞƌƐĂŶĚĞŶŚĂŶĐĞƚŚĞ
ŶĞƚǁŽƌŬĞīĞĐƚŽĨƚŚĞ>ŽŽƉhƉƉƌŽĚƵĐƚ͘
dŚĞůĂƩĞƌŝƐĂƉŚĞŶŽŵĞŶŽŶǁŚĞƌĞŝŶĐƌĞĂƐĞĚ
ŶƵŵďĞƌƐŽĨƉĞŽƉůĞƵƐŝŶŐĂƐĞƌǀŝĐĞǁŝůůŝŵƉƌŽǀĞŝƚƐ
ǀĂůƵĞƚŽƚŚĞŵĂŶĚƚŽƚŚĞŶĞƚǁŽƌŬŽǁŶĞƌ͘
&ŽƌĞdžĂŵƉůĞ͕ƚŚĞŶĞƚǁŽƌŬĞīĞĐƚŝƐĐůĞĂƌůLJĞǀŝĚĞŶƚ
ǁŝƚŚƚĂdžŝƐĞƌǀŝĐĞhďĞƌ͕ĂƵĐƟŽŶƐŝƚĞďĂLJĂŶĚ
ƉƌŽƉĞƌƚLJƉŽƌƚĂůZŝŐŚƚŵŽǀĞ;ZDsͿĂůůƚŚƌŝǀŝŶŐĂƐ
ŵŽƌĞƉĞŽƉůĞƵƐĞƚŚĞŝƌƐĞƌǀŝĐĞƐ͘
>ŽŽƉhƉƉůĂŶƐƚŽƌĂŝƐĞάϱϬŵŽĨĞƋƵŝƚLJĨƵŶĚŝŶŐ
ĨƌŽŵŝŶǀĞƐƚŽƌƐƚŽŚĞůƉƉĂLJĨŽƌƚŚĞĚĞĂů͕ǁŝƚŚƚŚĞ
ŶĞǁƐŚĂƌĞƐƚŽďĞŝƐƐƵĞĚĂƚϰϬϬƉ͘
dŚŝƐŝƐĐůĞǀĞƌůĞǀĞƌĂŐŝŶŐŽĨƚŚĞĐŽŵƉĂŶLJ͛Ɛ
ƉƌĞŵŝƵŵƌĂƚĞĚƐƚŽĐŬŽŶƚŚĞďĂĐŬŽĨĂǀĞƌLJ
ƐƚƌŽŶŐƐƚŽĐŬŵĂƌŬĞƚƉĞƌĨŽƌŵĂŶĐĞĚƵƌŝŶŐƚŚĞ
ƉĂƐƚĞŝŐŚƚŵŽŶƚŚƐ͘
^ƵƉƉŽƌƚĨŽƌƚŚĞĂĐƋƵŝƐŝƟŽŶĨƌŽŵŝŶǀĞƐƚŽƌƐŚĂƐ
ďĞĞŶǀĞƌLJƐƚƌŽŶŐ͘/ŶƚŚĞŚĂŶĚĨƵůŽĨĚĂLJƐƐŝŶĐĞƚŚĞ
ĚĞĂůǁĂƐĂŶŶŽƵŶĐĞĚŽŶϭϲDĂLJƚŚĞ>ŽŽƉhƉƐŚĂƌĞ
ƉƌŝĐĞŚĂƐƌĂůůŝĞĚϭϰйƚŽϰϵϬƉ͘
>ŽŽƉhƉ͛ƐƉĂƚĞŶƚĞĚĂŶĚĐůŽƵĚͲďĂƐĞĚƌĞŵŽƚĞ
ŵĞĞƟŶŐƐƐŽŌǁĂƌĞŝƐĚĞƐŝŐŶĞĚƚŽĚƌĂŐĂƵĚŝŽ
ĐŽŶĨĞƌĞŶĐŝŶŐŝŶƚŽƚŚĞϮϭƐƚĞŶƚƵƌLJ͘
dŚŝƐŝƐĂĐŽŵƉĞƟƟǀĞƐƉĂĐĞƐƚĂůŬĞĚďLJĚĞĞƉ
ƉŽĐŬĞƚĞĚƌŝǀĂůƐ͕ƐƵĐŚĂƐDŝĐƌŽƐŽŌ͛Ɛ^ŬLJƉĞĨŽƌ
ƵƐŝŶĞƐƐ͕'ŽŽŐůĞ,ĂŶŐŽƵƚƐ͕ŝƐĐŽ͛ƐtĞďdž͕
ĚŽďĞ͕dΘdƉůƵƐŵŽƌĞƌĞĐĞŶƚƐƚĂƌƚͲƵƉƐƐƵĐŚĂƐ
'ŽdŽDĞĞƟŶŐ͕:ŽŝŶDĞĂŶĚƚŚĞh<͛ƐWŽǁǁŽǁŶŽǁ͘
LOOPUP GROUP
FTSE ALL SHARE
Rebased to first
2017
2018
INDEX
KEY
•
•
•
•
•
Main Market
AIM
Fund
Investment Trust
Exchange-Traded Fund
BlackRock UK
Absolute Alpha
(GB00B5ZNQ990) 33
Bloomsbury
Publishing (BMY)
7
Blue Prism
(PRSM:AIM) Brewin Dolphin (BRW)
7IM Real Return
(GB00B75MS619)
33
Aberdeen Diversified
Income & Growth
Trust (ADIG)
27
AG Barr (BAG)
44
Allergy Therapeutics
(AGY:AIM)
12
Allianz Technology
Trust (ATT)
22
Aviva (AV.)
16
AXA Framlington
Global Technology
(GB0006598998)
21
Baillie Gifford
Japanese
(GB0006011133)
26
10
8
British Empire Trust
(BTEM) 14
Carnival (CCL)
33
Cineworld (CINE)
16
Finsbury Growth &
Income (FGT)
28
Riverstone Energy
(RSE)
14
Fundsmith Equity
(GB00B41YBW71)
22
21
Future (FUTR)
17
ROBO Global Robotics
and Automation
ETF (ROBG)
GlaxoSmithKline (GSK)
23
Rolls-Royce (RR.)
23
HSBC (HSBA)
33
Royal Bank of
Scotland (RBS) 37
Royal Dutch Shell
(RDSB)
23
Royal London
UK Equity Income
(GB00B8Y4ZB91)
26
Schroder UK Dynamic
Absolute Return
(GB00B3N53472)
33
Scottish Investment
Trust (SCIN)
37
Scottish Mortgage
Investment Trust (SMT)
22
SigmaRoc (SRC:AIM)
17
Smith & Williamson
Artificial Intelligence
Fund (IE00BYPF2Z68)
21
Strategic Equity
Capital (SEC) 13
J Sainsbury (SBRY)
6
JPM Global Macro
Opportunities
(GB00B4WKYF80)
33
Jupiter
Absolute Return
(GB00B6Q84T67)
33
Jupiter European
Opportunities
Trust (JEO)
22
KCOM (KCOM)
Clinigen (CLIN:AIM)
13
Daily Mail & General
Trust (DMGT)
43
Debenhams (DEB)
EasyJet (EZJ)
Entertainment One
(ETO)
Livingbridge UK
Micro Cap Fund
(GB00B55S9X98)
13
44
LoopUp (LOOP:AIM)
44
44
Marks & Spencer
(MKS)
16
Murray International
(MYI)
27
21
7
Ergomed (ERGO:AIM)
12
Euromoney
Institutional Investor
(ERM)
43
Neptune Global
Technology
(GB00BYXZ5N79)
Fidessa (FDSA)
29
Ocado (OCDO) ARE YOU LOOKING
FOR ‘WEEK AHEAD’
INFORMATION?
Full details regarding dates for financial
results, trading updates, AGMs, economic
announcements and ex-dividends
can be found on Shares’ website at
www.sharesmagazine.co.uk/market-diary
8
6
Pershing Square (PSH)
14
Pictet Robotics
(LU1316549283)
21
Polar Capital
Automation &
Artificial Intelligence
Fund (IE00BF0GL543)
21
Polar Capital
Global Technology
(IE00B42W4J83) 21
Polar Capital
Technology Trust
(PCT)
22
Quarto (QRT)
3
RELX (REL) 33
Tesco (TSCO)
6, 33
Third Point
Offshore (TPOU)
14
Threadneedle UK
Absolute Alpha
(GB00B8BX5538) 33
Unilever (ULVR)
29
Unite (UTG)
27
Watkin Jones
(WJG:AIM)
27
Webis (WEB:AIM)
10
WM Morrison
Supermarkets (MRW) 24 May 2018 | SHARES |
6
45
Документ
Категория
Журналы и газеты
Просмотров
2
Размер файла
6 971 Кб
Теги
journal, Shares
1/--страниц
Пожаловаться на содержимое документа