Kepler Trust Intelligence Podcast

BlackRock Frontiers analysis

In this episode of Trust Issues, we speak to Thomas McMahon, Investment Trust Research Manager at Kepler Trust Intelligence, about BlackRock Frontiers (BRFI). We look at the trust's unique investment universe, what's attractive about it, and get an outlook for the year ahead.
00:00 - Risk warning and intro01:00 - BRFI's investment universe06:06 - How does BRFI use gearing?08:20 - Correlation with developed markets12:03 - Given dollar strength, how did BRFI manage to perform well in 2023?17:20 - How do the managers manage risk?19:55 - How is the portfolio benefitting from 'friedshoring'?25:44 - Trends and outlook for 2024?
Our latest research on BRFI - tinyurl.com/79javze7BRFI website - tinyurl.com/mry4yd7y
Intro music by State Azure

Asia small cap investing, with AAS Manager Gabriel Sacks

In this episode of Trust Issues we speak to Gabriel Sacks, Manager of Abrdn Asia Focus (AAS). We look at why Asia small caps have performed well relative to other parts of the world, fears about small cap performance post-rate hikes, being underweight India and more. You can skip to individual questions using the timestamps below:
00:00 - Intro and risk warning00:48 - What does AAS aim to do?02:40 - What does the recent manager change mean for the trust?06:24 - Why have Asian small caps performed well compared to large cap?09:54 - Asia large cap is very skewed towards a few tech companies. Do any similar themes emerge in your stock picking process?13:26 - What are valuations in the portfolio like at the moment?17:15 - Are you afraid about the impact rate hikes will have on smaller companies?21:52 - Are Indian companies overvalued?25:00 - Is friendshoring a real phenomenon and does it present meaningful opportunities for investors?
Read our latest research on AAS: http://tinyurl.com/ydte4p3pVisit the AAS website: http://tinyurl.com/7scxvehy
Intro music by State Azure, used with permission.

Preference shares and UK small caps with Shires Income's Iain Pyle

In this episode of Trust Issues we speak to Iain Pyle, Manager of Shires Income (SHRS). We talk about the recent merger with Abrdn Smaller companies Income, the opportunity in UK small caps, and whether the base case market outlook of a soft landing is realistic. You can skip to individual answers via the buttons below.
00:00 – Intro and risk warning00:50 – What is Shires Income?02:59 – What benefits will the merger with Abrdn Smaller Companies Income bring?05:08 – What do preference shares bring to the SHRS portfolio?07:12 – How has your small cap exposure changed post-merger?10:22 – Are low small cap valuations justified? Do you see any opportunities here?14:29 – What is the thinking behind the financials exposure?17:17 – Some dividend stock valuations are priced at levels that implies the market believes the yields on offer are not sustainable long-term, is that correct?20:10 – It’s almost as though the least optimistic scenario is the most optimistic – a soft landing, no meaningful recession and so on. What do you make of that?
Our latest note on SHRS - http://tinyurl.com/2jd7f39tSHRS website - http://tinyurl.com/5f38nh4h
Intro music by State Azure, used with permission

Investing in multi-manager funds with Alliance Trust

In this episode of Trust Issues, we speak to Nicholas Todd, one of our Kepler Trust Intelligence analysts, about investing in multi-manager funds and what Alliance Trust (ATST) offers investors looking for a core global equity holding.
 
00:00  Introduction and risk warnings
01:08  What are multi-manager funds?
03:16  How have multi-manager funds performed?
04:19  What type of investor might want to consider adding a multi-manager fund to their portfolio?
06:14  An overview of Alliance Trust trust and its investable universe
08:47  How has Alliance Trust performed over the last few years, and what are the key drivers?
11:21  How does Alliance Trust’s portfolio differ from its peers?
12:37  What are some of the current style exposures within the portfolio?
16:35  Does Alliance Trust hold a position in any of the ‘magnificent seven’?
18:43  Overview of Alliance Trust’s Japanese allocation
21:00  What approach does Alliance Trust take to manage risk for investors?
27:53  What is the outlook for multi-manager funds over the next year? 
 
Intro music by State Azure, used with permission

The income opportunity in UK equities, with SCF’s Sue Noffke

In this episode of Trust Issues, we're joined by Sue Noffke. Sue is Head of UK Equities at Schroders and Manager of Schroder Income Growth (SCF). We talk about the opportunity in UK equities, areas of the market that look attractive and Sue's outlook for the year ahead. You can skip to individual questions using the buttons below:
00:00 - Risking warning 01:33 - What is SCF and what do you invest in?03:40 - How have rate hikes shaken up things for income investors?06:35 - How have you positioned the portfolio given now we are seeing inflation come down and the potential end of the rate hiking cycle?09:54 - Are there any areas of the UK market which you think look particularly attractive?14:46 - Do you see any catalysts for change that can improve UK valuations?19:22 - How are you invested today on a market cap basis? 22:02 - Have you used gearing given how low valuations are?28:03 - How wide is the trust's discount today?
Visit the SCF website - https://tinyurl.com/32upjc6tRead our latest research on SCF - https://tinyurl.com/4wkufw32
Intro music by State Azure, used with permission

A biotech bounce back? With IBT Manager Ailsa Craig

In this episode of Trust Issues, we speak to Ailsa Craig, Investment Manager at International Biotechnology Trust (IBT). The trust recently announced it would be moving to Schroders and we discuss the move, developments in biotech this year, what the IBT managers have been investing in, and more. You can skip to individual questions using the buttons below:
00:00 - Intro and risk warnings01:17 - What's happening with IBT now you are moving to Schroders?03:26 - Are we seeing a bounce back in biotech?09:02 - How are you reinvesting cash from acquisitions?14:05 - How do you invest for lower volatility but higher returns?16:45 - Did upping gearing levels work as hoped for?19:40 - Have rate hikes started to filter out bad companies?21:13 - Is the trend for new obesity drugs impacting the IBT portfolio and are there other trends investors should be aware of?22:39 - Should investors be worried about US pricing changes?
Visit the IBT website - ibtplc.comRead our latest note on IBT - https://tinyurl.com/3pe7jejp
Intro music by State Azure, used with permission.

Why Canadian stocks are at interesting juncture, with MCT’s Dean Orrico

In this episode of Trust Issues, we speak to Dean Orrico, President and CEO of Middlefield Group, a specialist asset manager that's based in Toronto. We speak about the firm's investment trust Middlefield Canadian Income (MCT) and why Canadian stocks look particularly attractive at the moment. 
There are several factors at play here, including low valuations, indirect exposure to the US , a growing LNG industry, and a rapidly increasing population that is driving economic growth and supporting the housing market. You can skip to individual questions using the timestamps below:
00:00 - Risk warnings and intro01:28 - What is Middlefield Canadian Income?05:38 - What are Canadian equity valuations like today?07:30 - Can Canadian stocks get you indirect exposure to the US?12:35 - What factors are supporting real estate valuations?18:49 - What impact is Canada's population growth having on the MCT portfolio?25:12 - Is there any chance regulatory change will lead to more housing supply?28:26 - What is the opportunity in Canadian LNG? Has Russia's invasion of Ukraine changed things?31:25 - Are we at the end of rate hiking cycle and what's your near term outlook for the market?
Visit the MCT website - https://tinyurl.com/4n9pdnj8Read our latest research note on MCT - https://tinyurl.com/jmefw5ww
Intro music by State Azure, used with permission.

Investing in Indian stocks, with ANII Manager Kristy Fong

In this episode of Trust Issues we speak to Kristy Fong, Manager of the Abrdn New India Investment Trust (ANII). We talk about why valuations in India are high, what could change that, technological developments, Modi's election and more. You can skip to individual questions using the timestamps below:
00:00 - Risk warnings01:00 - What is Abrdn New India?03:18 - Are Indian stocks being pushed up because of outflows from China and lack of options elsewhere?06:56 - What policies has Modi made to support investors and are you worried about the election next year?12:27 - How have digital IDs and adoption of smartphones opened up investment opportunities in India in the past decade?15:07 - Public spending has ramped up. How are you playing this and are we seeing any signs of a crowd in effect?19:09 - How meaningful is the move of manufacturing from China to India?21:40 - What are the opportunities in consumer consumption growth?25:00 - Is corporate governance a strength or weakness for India? How do you manage risks here?
Visit the ANII website here - abrdnnewindia.co.ukRead our latest research on ANII here - https://tinyurl.com/5dbxsycw
Intro music by State Azure, used with permission.

Semiconductors, infrastructure and consumer growth in Asia, with Abrdn Manager Pruksa Iamthongthong

In this episode of Trust Issues, we speak to Pruksa Iamthongthong, Co-Manager of Asia Dragon. We look at some of the major trends in Asia today, including infrastructure plays, green energy, consumer growth and what's happening in China. You can skip to individual questions using the timestamps below:
00:00 - Risk warnings01:08 - What is Asia Dragon?02:55 - What opportunities do you see in consumer growth?07:00 - How realistic is it that we'll see demand in China grow, given high levels of debt and how competitive industry is there?12:20 - What opportunities are there in infrastructure? What companies can you invest in to take advantage of positive trends here?15:47 - Are there more governance risks when investing in infrastructure?17:41 - Are companies really moving away from China? What are you investing in to take advantage of this?21:20 - What investment opportunities are there in clean tech? Are you worried about political risk when investing in these companies?26:36 - Have you added back to positions in semiconductor companies? Are you concerned about valuations given the hype around AI?29:30 - What do valuations look like in Asia at the moment? Any other final thoughts?
Read our latest note on Asia Dragon - https://tinyurl.com/3ubm5287Visit the Asia Dragon website - asiadragontrust.co.uk
Intro music by State Azure, used with permission.

Investing in Vietnam, with Dragon Capital Founder Dominic Scriven

In this episode Trust Issues, we speak to Dominic Scriven, the Founder and Chairman of Dragon Capital - the asset management group behind Vietnam Enterprise Investments (VEIL). In the episode we discuss inflation in Vietnam, how tech is changing the investment opportunities in the country, and some of the themes we see in the VEIL portfolio. You can skip to individual questions using the timestamps below:
00:00 - risk warnings01:52 - What is Dragon Capital?03:41 - How is inflation affecting Vietnam?08:04 - Are companies relocating to Vietnam from China?14:09 - Have smartphones changed the way people use financial services in Vietnam?18:21 - Is rising demand for consumer goods impacting the VEIL portfolio?22:58 - Does urbanisation remain a theme in the VEIL portfolio?27:58 - What are the benefits of being 'on the ground' and understanding local nuances when investing in Vietnam?31:00 - What is corporate culture like and how does that effect your ability to invest in public companies in Vietnam?34:40 - Will Vietnam become a part of emerging market indices soon?
Read our research on VEIL  - https://tinyurl.com/2b6xytvmVisit the VEIL website - https://www.veil-dragoncapital.com/
Intro music by State Azure, used with permission.