EDITOR’S LETTER
IN THIS ISSUE
Issue 39 / April 2018
PROTECT OR SURVIVE
Should you use
trusts for capital
preservation?
MULTI-COLOURED
ONE-STOP SHOP
Closed-ended
multi-manager funds
THE HISTORY BOYS
Where to find the
oldest investment
trusts
The trusts shaking a
multi-decade headwind
ISSUE 39
CREDITS
TRUSTNET MAGAZINE (FORMERLY
INVESTAZINE) IS PUBLISHED BY
THE TEAM BEHIND FE TRUSTNET IN
SOHO, LONDON.
WEBSITE: WWW.TRUSTNET.COM
EMAIL: [email protected]
CONTACTS:
Anthony Luzio
Editor
T: 0207 534 7652
I
T WAS PUT TO ME WHEN I FIRST
STARTED WORKING IN THE ASSET
MANAGEMENT INDUSTRY that an average
annualised return of 8 per cent could be
regarded as a fairly respectable outcome from an equity
fund. It came as something of a surprise then, to learn that
many investment trusts took out long-term debentures in
the 1980s when interest rates were in the double-digits, meaning they had to
make the same return from the market just to break even.
The good news is that, with much of this debt now maturing, many
of these trusts are now refinancing at more attractive rates. Holly Black
finds out in this issue’s cover story just how much of a tailwind this will
prove to be in the coming years.
On the subject of historic issues, this month’s sector focus falls on IT
Global, home to numerous trusts with a track record of more than 100
years. As Adam Lewis discovers, however, there is more to the sector
than longevity. Meanwhile, Sam Shaw runs the rule over multi-manager
funds in the closed-ended space while I investigate whether investment
trusts have a role to play in terms of capital preservation.
In our regular columns, SAINTS’ James Dow highlights three stocks
whose capital-light business models should help them deliver long-
term earnings growth and The Share Centre’s Sheridan Admans reveals
why he is turning to GAM Star MBS Total Return for its diversification
properties.
12
28
Enjoy reading,
Art direction & design
Javier Otero
W: www.feedingcrows.co.uk
Editorial
Gary Jackson
Editor (FE Trustnet)
T: 0207 534 7680
Rob Langston
News editor
T: 0207 534 7696
Jonathan Jones
Senior reporter
T: 0207 534 7640
Mai Sardon
Reporter
T: 0207 534 7625
Sales
Richard Fletcher
Head of publishing sales
T: 0207 534 7662
Richard Casemore
Account manager
T: 0207 534 7669
Photos supplied by iStock
and Photoshot
Cover illustration: Javier Otero
Anthony Luzio
Editor
14
LOAN SURVIVORS Holly Black finds out how trusts will benefit now that the long-term debt taken out in the
era of astronomical interest rates has begun to mature P. 2-5 / WHY THE TIGER ECONOMIES ARE POISED TO
POUNCE Henderson Far East Income’s Mike Kerley says local Asian companies are challenging multinational
brands and driving growth P. 6-7 / MULTI-COLOURED ONE-STOP SHOP Sam Shaw looks at the wide variety
of multi-manager trusts available in the closed-ended space P. 8-10 / GOING OFF-ROAD Monks Investment
Trust’s Charles Plowden talks about why the investment case for Fiat Chrysler has little to do with either Fiat
or Chrysler P. 12-13 / PROTECT OR SURVIVE? Whether trusts have a role to play in dampening risk depends
on what you mean by “risk”, writes Anthony Luzio P. 14-16 / FUND, PENSION, TRUST Baillie Gifford Positive
Change, Lindsell Train Global Equity and Allianz Technology Trust find themselves under the spotlight this
month P. 18-20 / THE HISTORY BOYS IT Global is home to many trusts that are more than 100 years old – but
there is far more to the sector than longevity, writes Adam Lewis P. 22-26 / FLEET OF FOOT SAINTS’ James
Dow highlights three stocks whose capital-light business models should help them deliver long-term earnings
growth P. 28 / WHAT I BOUGHT LAST The Share Centre’s Sheridan Admans reveals why he is turning to GAM
Star MBS Total Return for its diversification properties P. 29