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Listed Managed Fund Update

INTERNATIONAL EQUITY INVESTMENTS

The UK Listed trusts manage diversified international share portfolios and reliant on the managers ability to navigate the global financial markets.  These investments  are listed on the London Stock Exchange denominated in Sterling. Below is a brief summary of the favoured investments trusts.

Bankers Investment Trust provides a one-stop shop for global equity exposure. Its legacy was strongly UK-centric, but during current managers tenure more than 60% of the fund is now invested overseas. There is a strong income commitment, which has been fulfilled for more than 49 years. The fund represents an ideal core building block within portfolios.

Foreign & Colonial Investment Trust offers a well-diversified portfolio comprising predominantly global equities with an element of private equity exposure. The fund is suitable as a core building block for portfolios and has demonstrated steady outperformance with lower risk. The manager sets the asset-allocation strategy for the fund and delegates stock selection to his appointed regional specialists.

Monks provides global equity exposure with little attention paid to income. The managers pay little attention to the benchmark so investors should expect  the portfolio's country and sector  weightings to diverge widely from both the fund's benchmark and the average peer. Additionally, they also take a long-term view with the holdings, so turnover is also expected to remain low.

Murray International Trust provides both long-term capital and income growth from a portfolio that is predominantly skewed towards global equities and, in particular, Asia and emerging markets.  The focus on income is an important consideration here, and the fund does provide a high and regular level of income for investors.

Scottish Mortgage Trust gives all-around exposure to a concentrated portfolio of global growth equities. The nature of this high growth portfolio has a bias to Information Technology, Healthcare and Consumer Cyclicals is likely to encourage volatility. This isn't a fund for “widows and orphans” but does have considerable merit for long term investors seeking exposure to the potential winners of tomorrow within a broadly spread portfolio.

Worldwide Healthcare sector funds have the potential to be more volatile than more mainstream funds. Healthcare funds are no exception,  with their exposure to political, regulatory, clinical, and, of course, equity risk. There is also the effect of gearing on investor returns within this fund. Given these  factors, it is likely that the fund should form only a limited element within a broader diversified portfolio.

 

 

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