Trustnet Magazine 57 December 2019 | Page 24

SCOTTISH THE MORTGAGE MONKS INVESTMENT INVESTMENT TRUST TRUST Your portfolio 24 / 25 “I don’t think this is a transient set of issues: it represents the challenge that an emerging China presents to the US’s vision of itself” – has been felt most by Asian trusts. While posting a respectable average share price return of 8.42 per cent in the year to the end of November, the IT Asia Pacific sector has made about one-third the gain of its North American counterpart. As yet, there is no resolution in sight, with tensions recently flaring over US MONKS HAS OVER £1.9BN IN NET ASSETS UNDER MANAGEMENT, WHILE ITS ONGOING CHARGE IS A MODEST 0.50%*. THE MAINSTAY OF YOUR PORTFOLIO. Brexit winners and losers Closer to home, Brexit woes have continued to hamper UK trusts, with the UK All Companies sector underperforming its Europe, Shaky foundations Monks Investment Trust, we believe, could be a core investment for anyone seeking long term growth. It is managed according to Baillie Giff ord’s £39bn Global Alpha strategy. As a result, Monks takes a highly active approach to investment and its portfolio looks nothing like the index. The managers group their holdings into four diff erent growth categories. This allows for excellent diversifi cation and off ers the chance to unearth some of the more interesting companies listed on global stock markets. Over the last fi ve years the Monks Investment Trust has delivered a total return of 146.8% compared to 101.9% for the sector**. Standardised past performance to 30 September** 2015 2016 2017 2018 2019 Monks Investment Trust 2.8% 37.9% 35.6% 19.1% 7.8% AIC Global Sector Average 4.3% 29.0% 26.2% 19.2% -0.2% Past performance is not a guide to future returns. Please remember that changing stock market conditions and currency exchange rates will aff ect the value of the investment in the fund and any income from it. Investors may not get back the amount invested. If in doubt, please seek fi nancial advice. If you’re pursuing growth why not get on board? Call 0800 917 2112 or visit www.monksinvestmenttrust.co.uk A Key Information Document is available by contacting us. support for pro-democracy protesters in Hong Kong. Tom Slater, co- manager of Scottish Mortgage, says: “I don’t think this is a transient set of issues: it represents the challenge that an emerging China presents to the US’s vision of itself and sets us on a different trajectory over the coming years. For investors, it will divide the world into a US sphere and a China sphere of influence.” Long-term investment partners *Ongoing charges as at 30.04.19 calculated in accordance with AIC recommendations. Details of other costs can be found in the Key Information Document. **Source: Morningstar, share price, total return as at 30.09.19. All other data as at 30.09.19. Your call may be recorded for training or monitoring purposes. Issued and approved by Baillie Gifford & Co Limited, whose registered address is at Calton Square, 1 Greenside Row, Edinburgh, EH1 3AN, United Kingdom. Baillie Gifford & Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Company. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority. Woodford wasn’t the only victim of illiquidity in the open-ended universe in 2019. At the time of writing, the £2.5bn M&G Property Portfolio has been forced to suspend trading, blaming “Brexit-related uncertainty and structural shifts in the UK retail sector” for causing “unusually high outflows”. M&G Property Portfolio was one of a number of open- ended property funds to be gated following the UK’s vote to leave the EU, and there are concerns it will simply be the first of many to suspend trading this time around if Brexit concerns re-emerge. Many of its peers hope to protect themselves against this problem by holding large amounts of cash, exceeding 20 per cent of their portfolio in some cases. However, Nick Britton, head of intermediary communications at the AIC, says this acts as a drag on returns. He also points out investment trusts have been able to profit from open- ended funds’ forced sale of property by picking up these assets on the cheap when redemptions spike. “Investment companies have a fixed number of shares which are bought and sold on the stock market,” he says. “This means managers don’t have to manage the portfolio to deal with inflows and outflows; they can focus purely on the investment company’s performance.” trustnet.com