Thursday 11 April 2019 10:52 am

We pick six investment managers to beat Brexit blues

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By Jemma Jackson from interactive investor.

With MPs failing to agree a Brexit outcome, we name the funds and trusts to weather the political storm.

Charles de Gaulle reportedly said that "politics is too serious a matter to be left to the politicians."

With the chaos currently surrounding Brexit, and as MPs are united only in their rejection of each other's potential solutions, interactive investor considers some of the best funds and trusts to help weather these political storms and deliver returns to investors whatever happens next.

Scottish Mortgage Investment Trust – James Anderson / Tom Slater

Dzmitry Lipski, investment analyst, interactive investor says: "The largest investment trust in the sector and the most popular trust of interactive investor customers, this is a flag-bearer for Baillie Gifford's recent campaign to promote 'actual' investing – deploying cash into tangible, sustainable activities that allow companies to grow and prosper.

"'Actual' investment requires a willingness to be different, to accept uncertainty and the possibility of being wrong – but the long-term benefits are clear. This globally diversified fund also has exposure to unquoted companies – the growth stories of the future. Scottish Mortgage (LSE:SMT)isn't for the faint hearted, but it has a clear, well defined, unflinching vision which even in the tough times will give investors comfort."

City of London Investment Trust – Job Curtis

Rebecca O’Keeffe, Head of Investment, interactive investor says: "With 27 years managing City of London (LSE:CTY) under his belt, Curtis has played a major role in helping this company deliver over half a century of uninterrupted dividend increases despite the many crises experienced during that time. Curtis combines consistent long-term outperformance with a capital preservation mindset, which allows investors to grow their wealth without taking on excessive levels of risk."

Terry Smith, Fundsmith Equity

Lee Wild, Head of Equity Strategy, interactive investor says: "With trade wars having been a key investor concern over the last year or so, investors need a manager who is resilient, focused and committed. These traits are met and exceeded by Terry Smith, who has long recognised the value of picking global growth companies that are good value and building a long-term portfolio with them. With plenty of his own skin in the game, investing his own money alongside investors, Smith has an alignment of interests that many will appreciate with Fundsmith Equity."

Murray International – Bruce Stout

Murray International (LSE:MYI), an internationally diversified, global equity income investment trust has been led by Bruce Stout for the past 15 years.

Moira O'Neill, Head of personal Finance, interactive investor says: "Bruce Stout has long hunted for companies around the world with attractive valuations and good dividend and growth prospects, and this discipline has often led him far from the madding [investment] crowd. Stout has long been frank about the difficulties of investing in a world which has over indulged in debt, with a straight-talking approach that many of today's politicians could learn from and many investors are pleased with."

Lindsell Train UK Equity – Nick Train


Lee Wild says: "An alternative, for investors who think that the current nightmare of Brexit is going to end soon and are more positive on the future for UK stocks, is LF Lindsell Train UK Equity.

"Manager, Nick Train, stresses that he cares more about maintaining or growing the real value of investors' capital and income over time than outperforming a stock market index, but that hasn't stopped the fund being a runaway success. Its stellar performance makes it a firm contender for investors who are hoping that the UK stock market is finally going to come out of the shadows of Brexit."

Herald Investment Trust – Katie Potts

Rebecca O'Keeffe says: "Manager Katie Potts has just marked her 25th anniversary managing Herald Investment Trust (LSE:HRI), and in my view is one of the unsung heroes of the investment trust sector.

"Whilst past performance is no guide to the future, and this trust is at the racier end of the investment spectrum, Katie Potts has significantly outperformed the wider investment trust sector over the last 10 years. Despite this, the trust has always tended to sit on a stubbornly wide discount (-16% at time of writing, compared to -3% for the wider sector*.)

"There's no denying it is a little bit different, investing in smaller quoted companies in the areas of telecommunications, multimedia and technology. This trust sits just outside the broader technology sector and, like it's manager, walks its own path in an AIC bespoke 'Small Media, Comms and IT' sector."

*Source: AIC using Morningstar as at 2 April 2019.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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