KATIE TASKER
CHARLES STANLEY
Charles Stanley investment manager Katie Tasker most recently added Urban Logistics (SHED), first buying it in April 2020 and adding to the position in December 2021. The real estate investment trust (REIT) owns mid-sized logistics assets at the last mile of the supply chain.
“As demand for e-commerce grows, so too does the need for these final step warehouses and Urban Logistics is a good way to gain exposure to this investment theme,” she said.
“We have been purchasing the trust for clients who are underweight property, both for retail clients who have a good appetite for risk and those seeking income.”
The shares yield 4.4%, according to Winterflood Securities data. The REIT announced in October that it would move its listing from the Alternative Investment Market to London’s main market. The switch took place in early December and made the trust “more suitable for a greater number of clients”, said Tasker.
It followed an oversubscribed £250 million placing, which underlined demand for the shares.
The investment manager is actively working with its underlying tenants to improve the energy efficiency of its properties, which should resonate with investors who have an interest in sustainability, she added.
RYAN LIGHTFOOT-AMINOFF
CHELSEA FINANCIAL SERVICES
As an investment adviser to the VT Chelsea Managed funds, Chelsea Financial Services has recommended a number of investment trusts for inclusion. One of the most recent purchases across all four funds is Taylor Maritime Investments (TMI).
“This is a specialist investment trust in shipping, which buys a diversified range of ‘handysize’ and ‘supramax’ vessels,” said senior research analyst Ryan Lightfoot-Aminoff.
“This would normally be a macro exposed, quite niche, and therefore risky asset class, but the ships’ characteristics, with their smaller size and own loading/unloading equipment means they have much more flexibility in the routes and cargo they can operate with.”
He regards the management team as “excellent”, pointing to a long history in the industry and ability to use connections and experience to acquire ships at competitive prices and lease them out on exceptional rates.
“The latter has been hugely supported by the rise in shipping costs, with the trust excellently placed to take advantage. This has offered investors some inflation protection alongside all the other advantages of the trust’s strategy.”
Since its launch in late May the shares are up 26.4% in sterling terms versus an AIC leasing sector average of 8.6%.
STEVEN BEANEY
WH IRELAND
Steven Beaney’s latest investment trust purchase, in October 2021, is the Polar Capital Global Financials Trust (PCFT).
“With so much written about the likelihood of global interest rates rising over the next 12 to 18 months, my belief was that this trust and the wider financial sector would benefit,” said the WH Ireland investment manager.
Having invested at a small discount to net asset value of 0.5%, the shares moved to a 2.2% premium by early December, providing an “additional sweetener to total returns”.
The trust has nearly 80% invested across North America, the Asia Pacific and Europe and holds names such as JP Morgan, Bank of America, HDFC Bank of India and Chubb of Switzerland. With less than 10% of assets in the UK, the investment complemented Beaney’s existing exposure to UK financials.
“Managers Nick Brind, John Yakas and George Barrow take an active approach to the space, tilting the portfolio towards those subsectors where they are seeing the best opportunities at any given time,” added Beaney.
“This flexible approach is attractive at a time when the potential for new Covid-19 variants to emerge can materially change the outlook in a short space of time.”
KAMAL WARRAICH
CANACCORD GENUITY WEALTH MANAGEMENT
At the end of September 2021, Canaccord Genuity took advantage of the weakness in growth stocks to increase exposure to Allianz Technology Trust (ATT), having initially initiated a position several years ago. At the time, the trust was trading at a “compelling” discount relative to history of around 8% – an attractive entry point in light of its “outstanding” performance in recent years.
“This has so far turned out to be a solid trade, returning 14% in the two months to the end of November,” said investment analyst Kamal Warraich. “But of course, it’s the long term that counts and we maintain conviction in the team’s ability to deliver over the coming years.”
Shares in the trust have soared 340% over five years against an AIC technology sector average of 205.8%.
The wealth manager typically incorporates it into higher-risk portfolios as the trust tends to have more exposure to mid and small caps than peers and is generally more thematically concentrated.
“This means it can exhibit relatively higher levels of volatility,” said Warraich. “In order to balance this, we blend it with different styles and managers who are less directly exposed to the technology sector.”
Data source for performance figures is FE Analytics to 06.12.21; data source for yield and premium figures is Winterflood Securities at 06.12.21