Simon Cordery has been appointed investor relations manager for all Foreign & Colonial investment tr...
Simon Cordery has been appointed investor relations manager for all Foreign & Colonial investment trusts.
He was previously regional sales director for London and the South at F&C. He said his new role will involve liaising with small institutions and stockbrokers who invest in F&C investment trusts. He added: "The investment trust sector is modernising and my new role reflects this. I hope to raise the profile of the group's investment trusts."
Its largest trust is F&C, with its first year Isa campaign resulting in 10 times as many purchases than for its non-qualifying Peps in 1999. The trust has never had full qualifying status to allow the manager greater flexibility in asset allocation.
Retail investors now account for 60% of the share register by value. The trust, managed by Jeremy Tigue, issued its interim results last week. Its NAV rose by 6% during the six months to 30 June compared with a 0.4% rise in a composite benchmark, 40% FTSE All-Share and 60% FTSE World ex UK.
Alliance trust also announced its interim results showing a 6% rise in its NAV in the six months to 31 July. In comparison its composite benchmark, 50% FTSE All-Share and 50% FTSE World ex UK, advanced by 5.8%.
F&C's shares trade on a discount of 14% making the trust an attractive core holding for the retail investor, according to Credit Lyonnais. Tom Tuite-Dalton, Credit Lyonnais investment trust analyst, added: "The diversification, both geographical and sectoral, that generalist trusts provide make them eminently suitable for a volatile stock market environment."
Alliance stands at a 23% discount, a reflection of its performance over the past year, said Tuite-Dalton. For the year to 13 August the NAV rose by 12% compared with a 24% rise in that of F&C. Looking forward Tuite-Dalton thinks the NAV performance of the two trusts should be more similar. He added that both are good core holdings.
He said: "Alliance has no gearing which can be seen as advantageous for more cautious investors. In addition, Alliance offers more exposure to the UK market which can be seen as either a good or bad thing."
In terms of asset allocation the main difference between the two trusts is their respective UK and European weightings. Some 37% of the F&C portfolio is exposed to the UK and 25% in Europe. Alliance has a 52% UK weighting and a 12% Europe weighting.
Tigue's favoured market is Europe as restructuring is set to continue. Gavin Suggett, manager of Alliance, is attracted by cross-border corporate activity and tax reform proposals.
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