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CONTENTS
ARTICLES
Seeking tomorrow’s companies today Long-term capital growth from a global
portfolio of entrepreneurial companies is the new objective of this trust, where
managers are unconstrained by stock market indices as they aim to identify
tomorrow’s winners today .................................................................................................................4
Long-term growth Asia may be out-of-favour with investors worried about the end
of quantitative easing but bottom-up stock pickers can still generate long-term
gains in the region. Gross domestic product growth is not the same thing as stock
market returns ........................................................................................................................................6
Make the most of tax shelters Budget 2014 raised the maximum that investors can
REGULAR ITEMS
Editor’s comment................................. 8
shelter in individual savings accounts (ISAs) this year to £15,000 per adult. This
offers the chance to create “a meaningful, tax-efficient income stream through an
ISA” as well as the potential for tax-free capital gains ......................................................... 10
A wide world of opportunity Income-seeking investors should beware restricting
their scope to familiar UK companies and instead also consider a huge range of
yield opportunities overseas. ...........................................................................................................12
My View.................................................. 14
Analysis.................................................. 20
Best of breed No single fund manager is likely to be best across all investment
sectors and styles at all times, so a multi-manager approach to active stock
selection has been favoured by this trust since 2005 ......................................................... 18
Master class...........................................26
Video lounge........................................ 34
A cautious approach to above-average income Unprecedented monetary and
fiscal stimulus have produced economic recovery but the managers of this trust
suspect it is built on “quite shallow foundations”. So they shun financial fashion and
remain wary of excessive optimism .............................................................................................22
42 years of increasing income for shareholders Despite the recent financial crisis
and other stock market shocks, this UK and international trust has increased
dividend payouts every year since 1972. Brunner is a testament to closed-end funds’
ability to smooth income distributions ...................................................................................... 24
Big is beautiful Small and medium-sized companies look quite expensive after the
FTSE All Share Index increased by more than 21% since January, 2013, but price
opportunities remain among FTSE 100 blue chip stocks such as Shell and HSBC... 28
High diversification, low costs and a 3.4% yield It’s sometimes said that the first
rule of investment is to spread risk. The only UK-listed investment trust that’s a
tracker fund follows the FTSE All-Share Index to provide highly diversified exposure
to the stock market. This trust holds 595 different shares and yields income of 3.4%
net of basic rate income tax ........................................................................................................... 30
And now for something completely different! Find out how to seek out investment
opportunities across the whole of Emerging Europe including Russia and Turkey...32
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