SUPPLEMENT | APRIL 2021 STOCKS AND SHARES ISAs

Healthcare and technology could be the best medicine to revitalise your growth ISA

The recommended dose for your ISA

Seize the day Small and mighty School of thought Don’t dally, act now to profit The Aim market is going Learn about the opportunities from the financials rally from strength to strength in the edtech sector Pages 5 & 6 Pages 12 & 13 Pages 14 & 15 ad template.indd 1 18/03/2021 09:28 Contents Stocks and shares ISAs | April 2021 3

LEADER ‘ Regular investing has a smoothing effect’

Lawrence Gosling , editor-in-chief, What Investment

In an ideal world we’d all be smooth ISA operators, contributing regularly and avoiding the mad dash to make investments ahead of a new tax year

t is a quirk of human nature that many of us only do I something when we are It is a quirk of human facing a deadline. What else could explain the interest in ISAs and nature that many of us Junior ISAs in March and the fi rst only do something when week of April each year? we are facing a deadline Of course, we can make a contribution into an ISA on any day of a tax year starting from So if you don’t already, perhaps 4 Comfort fi rst 6 April, and there is a strong consider making monthly ISA Why the trend may not always be argument for investing earlier contributions, rather than a your friend when investing for an ISA rather than later. single lump sum at the start That is easy to say in retrospect, or end of a tax year. Regular 5 Seize the day however. If you had invested in investing has a smoothing eff ect, Nick Brind warns investors not to April of 2020 for the 2020/21 tax what investment groups like leave it too late to participate in the year you would have been buying to call ‘pound-cost averaging’, inevitable fi nancials sector rally into the market at a low. which is the way many fund There was a widespread sell-off managers buy and sell into 8 Buy now, pay later on 23 March 2020 as the full individual company shares. Will the chancellor’s recovery budget implications of Covid-19 began to Sadly, there are fewer and fewer be enough to galvanise the economy? become apparent to investors in regular savings schemes available western markets. But the reality direct from the large investment 9 The third way is very few people knew March trust groups – I think I’m right Why choose between value or would be the low point. in saying Aberdeen Standard growth when you can have the If, like me, you felt caution Investments stands out here for best of both worlds? was the watchword, it seemed its scheme that covers more than better to wait and see if markets 25 of the trusts it manages. 10 Riding the tech wave recovered before making your As ever, good luck with your ISA Find out which technology stocks new ISA contribution. investments – whether you make will be riding high in 2021 They broadly did recover them now or later. ■ through the rest of 2020, 12 Small and mighty so if you had been ‘brave’ you There’s no stopping the Aim market would have seen a good return, after some unexpected wins in 2020 at least during that relatively short time period. 14 School of thought Of course, the other side of this Education technology allows for a discussion is that the value of an broader, deeper learning experience ISA for the 2019/20 tax year could for all have been badly hit depending on when you made your investment. 16 Healthy return Experienced investors are used How investing in healthcare could to the highs and lows – or as fund get your ISA portfolio fi ghting fi t managers like to say ‘volatility’ – of the stock markets. It can be 14 Vital statistics quite hard to bear, however, if Independent performance statistics you are relying on your ISA for provided by Morningstar retirement income.

003 _WIsupp_0421.indd 3 18/03/2021 09:40 4 Overview Stocks and shares ISAs | April 2021

Many of us fail to use our I was reminded of the value of annual capital gains tax these trusts and the importance allowance, so if you expect of staying with them recently a certain asset class or sector when the reported Comfort will do well over a short period its results for 2020. of time then invest directly, Four years ago, the sentiment turn a profit and use some about the trust was not great for of that allowance. reasons shareholders will well remember. But by holding onto Tried and trusted those shares while the company first Keep your ISA for long-term sorted itself out, shareholders investments you hope will have been rewarded with The latest trend may not accumulate over time. I know continuous dividend gains. for many readers this is how The trust reported its 42nd year always be the best fit when you use investment trusts, of rising dividends and there is investing for your ISA, particularly some of the older clearly plenty of reserves left in and bigger trusts that offer the tank, so to speak. My broader warns Lawrence Gosling exposure to a range of markets. point is that while it is good to look for something ‘new’ for your ISA investment, something old ometimes the discussion can also be worth sticking with. about where to invest an ISA Some of the areas we talk Sfor a new tax year feels a about in this supplement, little too focused on the latest such as healthcare and fashion for the season. technology, are themes that Just as most of us do not change companies like Alliance Trust our wardrobe because something invests in to achieve growth, is trendy according to a style so it’s always worth reading a magazine, we are looking for report and accounts to learn resilient investments that will more. We hope you find this do well over a period of time. supplement useful. n Think of them as that reliable, hard-wearing, comfortable pair Lawrence Gosling is editor-in-chief of shoes you’ll never get rid of. of What Investment

Portfolio staples Over the following pages we look at a range of investment sectors and ideas we believe are resilient and hard-wearing enough for your ISA. Or to put it another way, they have the potential for solid long-term growth, with ‘long term’ being key. In my opinion every ISA investment should be long term to get the fullest benefits of the scheme. If you want to make short- term tactical investments – and I admit I do every now again – don’t do it in an ISA.

While it is good to look for something ‘new’ for your ISA investment, something old can also be worth sticking with

004 _WIsupp_0421.indd 4 18/03/2021 10:05 Financials Stocks and shares ISAs | April 2021 5

Seize the day

Nick Brind warns investors not Its earnings are sensitive outperformed almost to economic activity so the immediately. This was to leave it too late to participate improving forecasts have driven evidenced by the early 1990s the rally, and confi dence in the recession, the UK exiting in the fi nancials rally that earnings outlook for the sector the exchange rate mechanism, inevitably follows a downturn over the next couple of years has the dotcom bubble in 2000, the risen signifi cantly. Iraq war in 2003, the global The sector discounted a fi nancial crisis and the UK inancials remains one of the worse downturn than actually referendum in 2016. This time, it cheapest equity markets. happened, thanks to government is no diff erent. FFollowing the positive and central bank actions that news around the coronavirus have reduced the economic Positive projections vaccines in November last year, impact of lockdowns and changes Earnings for the sector are they jumped sharply in price. Nick Brind in spending patterns. forecast to be up 38.9% in The sector is also likely to be Co-manager, Polar Looking back over previous 2021 and 10% in 2022, led by one of the biggest benefi ciaries Capital Global recessions or market falls, the recovery in the earnings of Financials Trust as economies open up over the having discounted the bad bank shares, as new accounting course of this year and into 2022. news, fi nancials have always rules have forced banks to make

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loan-loss provisions earlier in the from Asia’s better handling cycle than in previous downturns. of Covid-19, which will As a result, provisions were allow a faster recovery. They set when the outlook in The financials sector is likely to be one also continue to benefit from mid-2020 was more opaque, of the biggest beneficiaries as economies the low penetration of financial and therefore likely to be too open up over the course of this year services to GDP relative to conservative. For example, developed markets, under- under its base case forecast, pinning their long-term JP Morgan stated it has excess Against this background, growth potential. provisions of $10bn (£7.2bn). prices of some growth companies Payments companies continue In fact, the surprise of this are hitting stratospheric to benefit from the shift from downturn was that last year, multiples. Interest in stock cash to card and the growth banks’ shares underperformed by markets and cryptocurrencies has of e-commerce. more than they did in the global surged and the risk of a repeat of Following the global financial financial crisis, when banks were the 2000 dotcom bubble looms. crisis, regulation forced failing and confidence in the Share prices are jumping on the institutions to manage their financial system collapsed. slightest whisper. Companies capital and their risk more Today is very different. with little or no revenues have effectively. A decade on and Bank balance sheets are seen multiples put on their during an era of very low strong, and they are part of business that defy logic. Some interest rates, the banking sector the solution by providing investors are saying value no continues to make surprisingly a conduit for government, longer matters. But value always high returns (outside of Japanese guaranteeing lending to matters eventually. and eurozone banks), have support businesses, and If you had purchased a basket strong balance sheets and show allowing people and businesses of global financials on the eve of little sign of pressure from new to take payment holidays. the financial crisis in May 2007, entrants who have escaped Furthermore, regulators are you would have still made a lightly from the regulators. likely to remove all remaining return of more than 60% over the restrictions on banks paying intervening period, despite the Rational thinking dividends and buybacks at some collapse in share prices. Investors have also become point during the year. US, Asian By comparison, if you bought numbed by the low interest and Swiss regulators took a a basket of global technology rate narrative. Government pragmatic approach, unlike their shares on the eve of the collapse bond yields have started to eurozone and UK counterparts, in the sector in March 2000, you send warning signals as have in allowing banks to continue to would still be nursing a loss of other asset classes, including pay dividends last year, albeit over 45%, assuming you held financials, that benefit from a capping the level of payouts. them for the same amount of change in inflation and interest In December, the Federal time, because your starting rate expectations. Reserve announced banks could valuation was so high. In fact, It is too early to tell exactly restart buybacks, which will be you would have had to wait 16 what the opening of the accretive to earnings, and a full years just to get your money back. Pandora’s box of unprecedented restart of dividends in Europe government stimulus and and buybacks in the US will Absolute value guaranteed lending will lead further boost sentiment. The financials sector, despite to, but investors are arguably the recent bounce, has seen taking a risk in not having some Beware the bubble a significant de-rating in its exposure to financials, or other Outside the banking sector relative valuation to global equity sectors that are beneficiaries of insurance companies are also markets over recent years. any change in expectations. benefiting from the recovery. Absolute valuations remain Consensus earnings have This comes on the back of an below historical averages, too. no benefit built in for higher increase in insurance rates for Investors who have rightly been rates in future years and so commercial businesses, as losses focused on growth areas of the the sector may be sensitive to due to business interruption stock market in recent years risk any upward reassessment of claims and the cancellation or missing out on the rotation into the interest rate outlook. The delay of sporting events, such as those areas of the market hit hard market’s reaction to Pfizer’s the Olympics, fall away. by lockdowns, which have much vaccine results, with financials Asset managers and stock more upside. outperforming significantly, was exchanges are also riding the There are also significant entirely rational. We believe it recovery, as fees generated from opportunities within the sector will happen again when investors a higher turnover from trading, outside the main banking and see the success of vaccines and or the jump in assets under insurance subsectors. lockdowns ending. That day is management from higher equity For example, Asian emerging not far away. Do not leave it too markets, boosts profitability. market financials are benefiting late to participate. n

005-006 _WIsupp_0421.indd 6 18/03/2021 10:05 We strive to discover more.

Aberdeen Standard’s Asian Investment Trusts

When you invest halfway around the world, it’s good to know someone is there aiming to locate what they believe to be the best investments.

At Aberdeen Standard Investments we get to know companies first hand. From Thailand to Singapore, from China to Vietnam, we’re constantly analysing and talking to companies to understand their future.

To steer your portfolio in the right direction, be with the fund manager who aims to discover more in Asia.

Please remember, the value of shares and the income from them can go down as well as up and you may get back less than the amount invested. Asian funds invest in emerging markets which may carry more risk than developed markets.

Request a brochure: 0808 500 4000 invtrusts.co.uk/asia

Issued by Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL, authorised and regulated in the UK by the Financial Conduct Authority. Please quote 2576.

adSTA0321199764-001_2576_ASI_IT_AD_2021_ASIAN_A4.indd template.indd 1 1 18/03/202111/03/2021 09:2717:02 8 The budget Stocks and shares ISAs | April 2021 Buy now, pay later Will the chancellor’s recovery budget be enough to galvanise the economy?

s we enter a period Treasury. This would be arguably of refl ection on the more impactful in a shorter Achancellor’s latest fi scal timeframe, and would activate measures aimed at energising the funds far quicker than the UK UK economy, many will breathe Infrastructure Bank. a sigh of relief the dreaded ‘blockbuster’ tax rises did not Productivity test materialise. There were few There is an interesting backdrop surprises, as most of what was to all of this. The UK population announced had already been drip has been paralysed under fed into the public domain. lockdown with a diet of furlough Such is the scale of the and enforced reductions in economic fallout caused by household spending. the pandemic, the measures While the vaccine programme announced seem relatively has been an outstanding success, proportionate, and most fi t a return to normal working is still into the ‘spend now, tax later’ competitive tax systems” of the a way off , which has precipitated bracket. But will it be enough to leading 37 OECD economies. signifi cant behavioural changes. send the economy into overdrive? Hopefully, this will not be an Working from home has opportunity missed, with larger become a way of life in the past Missed tricks businesses forced to contemplate year and mobilising a workforce From a business perspective, the Ian Currie setting up head offi ces abroad or, into full attendance might be chancellor clearly wants to get Founder and worse, acting as a deterrent to easier said than done. Though businesses that are sitting on director of SME, those who might have previously remote working has been a Seneca Partners a cash buff er of £100bn to help viewed the UK as a desirable base. successful workaround, there can those that aren’t as well placed to be little doubt that the energy, become productive again. A sustainable recovery collaboration, mentoring and His ‘super deduction’ is helpful There will undoubtedly be idea-sharing aff orded by an but is set against a massive hike a bounce over the short and offi ce or workplace environment in corporation tax in two years’ medium term as the Offi ce for has detracted signifi cantly from time. As if our tax regime isn’t Budget Responsibility forecasts overall productivity. complicated enough, businesses confi dently predict. Whether Lockdown fatigue is evident will now be trying to balance this budget in isolation will but turning this round to desired their corporate tax liabilities be enough to sustain that is national productivity levels with how best to use the new unknown. To do so will require might be a bigger challenge allowance and map it against business investment, and perhaps than envisaged. The UK has long future tax liabilities. And this part more should have been done to lagged behind our European of the equation is perhaps the incentivise the £250bn wall of counterparts in this measure. biggest head scratcher for many savings built up by households to There is much to ponder beyond business leaders. be directed towards businesses. the bare fi scal responses. It There were hopes leading up Just as the ‘super deduction’ is a is an unenviable task for any to the budget that Brexit had carrot for businesses, a two-year chancellor, and when the task is created a unique opportunity boost for small and medium- to try to restore the nation’s debt to position the UK as a world- sized enterprises from increasing levels to 97% of GDP by the end leading place to invest, with an Enterprise Investment Scheme of the current parliament, it adds almost ‘Singapore style’ policy (EIS)/Venture Capital Trust some perspective. towards inward investment. (VCT) limits may have cornered For now, we have to hope for the With a sword of Damocles a portion of those savings, and desired response. We must rely on hanging over us for the next captured private capital for a the UK population buying into the two years, this has prompted predictable time horizon. chancellor’s ‘spend our way out’ The Centre for Policy Studies Taking EIS/VCT tax reliefs challenge as this budget may be to announce that Sunak’s to, say, 50% for the next two as good as it gets for some time. corporation tax plan would years would have been a fairly Overall, it seems the chancellor “give the UK one of the least self-fulfi lling case for the has made a reasonable start. ■

008-009 _WIsupp_0421.indd 8 18/03/2021 10:09 Value and growth Stocks and shares ISAs | April 2021 9

overlook the hidden value behind these sometimes complex structures, and most analysts will miss them entirely. The third way It can be complicated to unearth a company that incorporates Why choose between value or growth investing the characteristics of both value and growth. Let’s look at when you can have the best of both worlds? an example.

alue versus growth investing slips from time to time and asks The value/growth equation is a decades old debate a fellow fund manager: “Are you Kinnevik is a Swedish-listed Vthat’s raged since Benjamin more value or growth?” holding company established in Graham’s fi rst ‘value’ stockpicks The conversation is often 1936. It has evolved from iron, in the early 20th century. The dominated by the narrative paper and woodworking sectors, argument squares off two of competition. Performance Joe Bauernfreund to telecoms, e-commerce and strategies in opposite corners of vs valuation, risk vs safety, us Manager, early-stage investments in the ring, fi ghting it out over risk, against them. AVI Japan digitally enabled businesses. Opportunity valuation, investor temperament The recent AIC report Has Trust and AVI As is often the case with and global market forces. But is value had its day? laments the Global Trust holding companies, Kinnevik this fi ght still relevant? widespread “cavalier references typically trades at a discount to to the rivalry between growth its . Reframing In the red corner … and value investment styles”, but the value vs growth debate as an Depending on who you ask, fails to address a fundamental analytical style, buying a company ‘’ is most often issue: value and growth investing on a discount is value investing at defi ned as seeking returns on are not two rival camps with its purest – you are buying it for relatively low-risk investments incompatible investment theses, less than it is worth. in stocks that are undervalued. divided by insurmountable However, growth is the other For some reason or other, the ideological barriers. It is possible side of the equation. Kinnevik market value of the stock does to fi nd a middle ground. has built a strong track of not refl ect their intrinsic value. Is it possible to fi nd attractive value creation, with European Value investing is tied in many quality companies, growing e-commerce platform Zalando a peoples’ minds to low-growth, at above-average rates but case in point, returning around often challenged businesses that undervalued by the market? 8x its initial investment to date, the myopic market has cast aside. If these companies were easy and rising from €21.50 (£18.46) By comparison, growth to fi nd they would not trade in 2014 to close to €100 per share investing conjures an image below their intrinsic value for today. Shareholders in Kinnevik of savvy investors picking the long. Companies in high-growth have ridden this wave. next billion-dollar superstar sectors are under constant This combination of unusual and in modern sectors. The aim scrutiny by analysts and such an unloved structures, and high- of growth investing is to pick opportunity would be snapped up. quality underlying assets, typifi es companies that will outstrip their But these companies do exist, that growth/value approach. We competition, growing at above- often hidden beneath ownership want to buy assets for less than average rates and rewarding their structures that obscure the value they are worth, and then watch investors with high performance. of the stock from easy evaluation. the assets grow in value. Neither of these typologies quite A simple screening process will hold – they are caricatures – but Balancing act this hasn’t stopped their pro- Value/growth investing is a liferation across all areas of the nuanced game, relying on ability, investment world. Clients and patience and diligence to fi nd that allocators often reference such golden opportunity. A company terms, while press commentary is that is undervalued by the market, rife with the debate about value vs but with long-term prospects that growth. Even this author’s tongue would excite any hardcore growth investor is the archetypal value/ . Ardent value investors will claim it for their own, pointing at the Value/growth investing is fundamental undervaluation. a nuanced game, relying Growth investors will retort that the value is in the long-term on ability to nd that potential to outstrip the market. golden opportunity We are staking a claim to both. ■

008-009 _WIsupp_0421.indd 9 18/03/2021 10:09 10 Technology

The tech sector holds some big names with huge potential. For those looking to drop in, which stocks will be riding high in 2021? Riding the tech wave echnology has been the If adding to your well as a user doesn’t headline story of the portfolio with single mean it’s a sound prospect Tpandemic, from the company investments, as an investment. unstoppable rise of Zoom to the it’s important to be aware step change in online shopping. If that technology comes in Take a byte you’re topping up your ISA before many guises, from pure However, there are some huge the end of the tax year or trying tech firms to online names with strong potential. to find the next big thing for retailers, games developers Apple has had a rollercoaster 2021/22, it stands to reason you and advertisers. year but posted impressive might want to take advantage of They also range from massive figures, with quarterly revenue the trend. cash generators to familiar up 21% year on year. There are household names that have clearly major issues ahead, rarely posted a profit. Just not least a longer lifespan that because you know a company means fewer mobile upgrades, and competition from cheaper rivals. However, iPhone, Mac and iPad sales are up as the shift to working from home powers demand: there are now more

010-011 _WIsupp_0421.indd 10 18/03/2021 10:18 Stocks and shares ISAs | April 2021 11

than a billion iPhones active consumers under pressure may managers’ process leads them to around the world. fi nd it more diffi cult to justify focus on innovative businesses There’s also plenty of hope fast-fashion purchases. with high-growth expectations. in the services division, which However, Asos has snapped It just so happens that many is now the company’s second up the Topshop, Topman, Miss of these pioneering fi rms use largest, and has increased sales Sarah Coles Selfridge and Hiit brands, and technology to become the best over the year. The margin on Personal looks set to fully exploit them. at what they do. services has increased again, fi nance analyst, Sales growth of the brands has Electric car maker Tesla has Hargreaves vindicating its strategy to focus Lansdown been over eight times higher on been one of the trust’s biggest on rolling out its Apple One its platform than their respective investments for some time. bundle. The fi rm sees services sites online. Results in January Anderson and Slater also like powering the revenue that will showed customer engagement is what they see in China, and build sustained future growth. ticking up, which is no mean feat have included the e-commerce Alphabet, Google’s parent in such a competitive landscape. platform Alibaba and food delivery company, is also proving to be If you prefer collective giant Meituan in the trust. a mind-boggling cash machine, investments, one worth looking What makes the trust unique and recently posted full-year at is the 15-year-old Polar Capital is its investment in private revenues up 13% in 12 months. Technology Trust. The largest businesses not yet listed on a stock What is particularly striking dedicated to market. These have the potential is that Google Services, which tech on the UK market, it aims to grow without the interference includes the core advertising, to spot developing trends and of external shareholders, but search and YouTube businesses, invest in fi rms that will benefi t. they’re less liquid and therefore boomed as ad revenues soared. It seeks the next-generation riskier. The managers see this Advertising is seen traditionally technology leaders who can part of the market as a key source as a cyclical industry, because outsmart the competition. of opportunity for serious, when times are hard, ad The trust invests in some of the long-term investors. budgets are cut. However, the more obvious tech names, like cost-eff ective nature of online Apple and Microsoft. But there Beyond the obvious advertising, plus the ability are plenty of themes in this space You could also consider Rathbone to target and track, means and the team takes advantage Global Opportunities. It might companies have focused their of that. Think electronic not seem an obvious choice but spend with Alphabet. The payments, digital marketing there is more than one way to get business has weathered the and advertising, cybersecurity, exposure to technology. crisis well as a result and stands artifi cial intelligence, the cloud Around a quarter of the fund in good stead for the next and semiconductors. invests directly in tech companies, advertising boom. and the likes of Adobe, Alphabet The core Google business has Fund facts and Microsoft are in there. But a cash war chest that exceeds Alternatively you could gain fund manager James Thomson $100bn (£72.07bn). It could buy exposure to the sector through a is always on the lookout for out a FTSE 100 company every globally diversifi ed fund, where businesses in other sectors that year while barely aff ecting the managers have the freedom to use tech to innovate and adapt, balance sheet. increase holdings when they spy or have implemented strong IT Neither of these stocks are an opportunity. infrastructure behind the scenes cheap, but you’re paying for Scottish Mortgage Investment to beat their competitors. great businesses. However, they Trust needs no introduction. UK retailer Next is a good do face the same problem in that Managed by James Anderson and example. It’s not a tech company they are subject to the law of Tom Slater of Baillie Giff ord, it in the traditional sense but has big numbers. It’s hard to move is renowned for its penchant for built a huge online presence. the dial when you’ve already fast-growing businesses, often Thomson says it has the biggest cornered so much of the market. in the tech space. This has led share of the market in the UK for Alphabet is dabbling in moon- to spectacular returns in recent online clothing retail. This could shots, self-driving cars and years, but it can also mean some make the fund a good choice for life sciences, but these are not volatile performance. those looking for a diversifi ed guaranteed to come to fruition This isn’t strictly a technology option while remaining exposed to and if they do, it’s a long way off . portfolio as it has the fl exibility some exciting tech trends. to invest in any sector. But the Technology is enjoying its time Shop around in the sun and, while its upwards You could consider one of the trajectory won’t last forever, if booming online retail stories like you choose investments with Asos. It’s operating in a tough Just because you know sound fundamentals and strong market so growth is by no means opportunities for the future, they a cakewalk. Price competition a company well doesn’t could prove useful additions to could eat into margins and mean it’s a sound investment your portfolio. ■

010-011 _WIsupp_0421.indd 11 18/03/2021 10:18 12 Market Stocks and shares ISAs | April 2021

Small and mighty Many smaller companies dazzled during the fi rst year of the pandemic and the Aim market looks set to make yet more progress in 2021

ondon’s Alternative Raising the bar year, making it the best year for Investment Market (Aim) Aim closed Feb 2021 with 816 secondary raises since 2010. Lhad a remarkable 2020, companies and a total market However, unlike many ending the year on an all-time value of £134bn. While there was companies on the main market, high, signifi cantly outperforming a net decline of 44 companies whose activities were severely other UK main market indices. from the 863 at the end of 2019, Chris Boxall, curtailed, many Aim companies While smaller companies the overall market value was Co-founder, raised new equity in support of have a tendency to underperform £16.9bn higher. Fundamental Asset growth opportunities, as their Management larger peers in a struggling The net decline in the number business models were well economy, a large number of of companies was refl ected adapted to the new environment. Aim companies were bene- in a poor year for new issues/ As traditional high street fi ciaries of the pandemic and IPOs, with only 32 new entrants retailers struggled during lockdown environment. raising £486m on their launches, lockdown, cash rich online We anticipate outperformance making it the weakest year for fashion retailer Boohoo Group could continue as many Aim fresh arrivals since 1999. raised £200m to take advantage companies remain well placed to As the pandemic tested of the numerous opportunities benefi t from changes accelerated the fi nancial resources of all that are likely to emerge in the by the pandemic. Although, as companies, with many forced to global fashion industry as a result the valuations of many larger, raise new equity capital to bolster of the pandemic. Online fashion higher-profi le Aim companies are their weakened balance sheets, rival Asos also bolstered its stretched, successful investment Aim also saw a large number of coff ers raising £240m in April. continues to demand proper due secondary fund raises. A total Life sciences specialist Abcam diligence and research. of £5.2bn was raised in the raised £110m in April, and later

012-013 _WIsupp_0421.indd 12 18/03/2021 10:13 Alternative Investment Market Stocks and shares ISAs | April 2021 13

in the year also dual listed its its value soaring by £3.7bn to shares on the Nasdaq. Abcam was £7bn, driven by strong trading popular for those investing in from video gaming companies, A large number of Aim companies Aim with an eye on inheritance three of which were valued at tax (IHT) benefi ts. The Nasdaq more than £1bn each at the year were bene ciaries of the pandemic dual listing means it may no end, with Codemasters Group and lockdown environment longer qualify for this. Investor’s not far behind. Champion’s AIMsearch tool – Codemasters is currently aimsearch.investorschampion. the subject of a bidding war natural gas, there was growing com – can provide clarifi cation of between US-listed gaming interest in hydrogen-based the IHT-qualifying status of all groups Electronic Arts and energy, which is being pushed as Aim companies. Take-Two Interactive, with the a solution to fi ll the energy gap Other Aim companies raising former favoured to snap up the left from the impending closure of signifi cant sums in support of UK-based racing game specialist nuclear and coal power stations. growth opportunities included having outbid its rival. Germany’s focus is on the video gaming service specialist It will be a shame to see production of green hydrogen – Keyword Studios, digital learning another fast-growing UK fi rm made by converting wind or solar company Learning Technologies, acquired by an overseas rival, electricity into hydrogen – with energy storage and clean fuel with UK shareholders seemingly the expectation that at least 20% company ITM Power and unwilling to back the longer- of its hydrogen could be produced renewable energy generator term growth opportunity. from renewables by 2030. Greencoat Renewables. Gear4music, the online Aim includes several hydrogen The leisure travel operator retailer of musical equipment, fuel cell companies, whose shares Jet2, formerly Dart Group, and music and audio products soared over the course of the raised £172m to strengthen company Focusrite, were year despite the challenges of its balance sheet. two other pandemic winners the pandemic, adding £5.9bn in A total of 76 companies from the leisure goods sector, market value to the alternative cancelled Aim listings in as growing numbers sought energy sector. Both ITM Power 2020, most of which were solace from making music and Ceres Power closed the year underachievers. However, during lockdown. valued at more than £2bn, with larger leavers included claims shares of the former up 600%. management group Redde, Health kick Aim’s technology sector which joined the main UK market Having attracted little attention consisting of 113 companies and following its Northgate merger, for years, many of Aim’s small encompassing the sub-sectors Harwood Wealth Management, healthcare companies were quick of software, hardware and Castleton Technology and to develop tests for Covid-19, telecommunications-related Share (owner of The Share benefi ting from explosive activities, proved extremely Centre), which was acquired by demand and share price growth. resilient, with its value rising by Interactive Investor for £62m. The value of Aim’s £4bn to £18bn. healthcare-related companies, Strong gains at the larger end Market leaders encompassing the sub-sectors of of the scale came from GB Group, The Aim Index continues to be medical equipment and services, the identity verifi cation and fraud dominated by relatively few and pharmaceuticals and biotech, detection specialist, and Gamma large companies, with the top 20 rose £5bn in value to £17bn. Communications, a provider of valued at £45bn, representing The healthcare sector also cloud communication services, 34% of the total value of Aim. brought Aim’s top performer both of which ended the year At the end of the year there in the year in Novacyt, which valued at more than £1.5bn. were a record 24 Aim companies received large orders from the Aim’s outperformance relative valued at more than £1bn each, UK’s Department of Health for to the main UK market was compared with only 16 at the its Covid-19 tests, boosting the driven by the latter having end of 2019. shares by more than 6,000% in no exposure to video gaming With its shares up 42% in the period. Having opened 2020 and hydrogen fuel cells, two 2020, Asos closed the year as with a market capitalisation sectors seeing exceptional share Aim’s largest company, valued of only £5m, Novacyt closed price gains. While the UK main at £4.8bn, having assumed the the year valued at £602m, market clearly has considerable crown from online fashion rival funding the rollout of its testing healthcare exposure, the shares Boohoo Group, which came kits entirely from internally of AstraZeneca, the UK’s largest in second, valued at £4.35bn, generated cash. pharmaceutical company, were despite criticism for poor working surprisingly fl at, and those of conditions and questionable Green energy GlaxoSmithKline fell by 25%. corporate governance. With many countries – notably This contrasts with the stunning Aim’s leisure goods sector also Germany – getting behind performance of some of Aim ’s benefi ted during the pandemic, hydrogen as an alternative to healthcare stocks. ■

012-013 _WIsupp_0421.indd 13 18/03/2021 10:13 14 Education technology Stocks and shares ISAs | April 2021 School of thought Education technology will revolutionise the way we teach, maximising each pupil’s potential and providing a broader, deeper learning experience for all

or more than 10 million the opposite. Productive Open to all school children in the UK, companies rely on collaboration Another way edtech is Fthis past year has been a and teamwork. transforming education is by disorderly one. In and out of their To take an example from making available vast amounts schools, much of their learning my own experience, in my of information at the click of has been done on laptops and daughter’s primary school, the Andrew Wolfson a button. This is a world away phones at home. There has teacher cancelled spelling tests in CEO, Pembroke from when we were children and been an explosion in education year fi ve on the basis that it was VCT would spend hours researching technology (edtech), which is sending the wrong signal. subjects in the school library. used to facilitate education, Many parents were aghast, Today, education providers such learning and assessment. as this was seemingly a as the BBC Curriculum and While edtech was previously qualifi ed measure of their the Oak National Academy under the radar, the pandemic child’s intelligence. The teacher has placed it centre stage. explained that if a child scored The edtech sector is already a 19/20 in a test, the parent valuable one for the UK economy. would inevitably focus on which Even before the pandemic, it was question they got wrong rather predicted to be worth £3.4bn in than praise the 19 they got right. 2021 and comprises more than Silence fell over the room as 1,000 companies. This may have parents realised just how right grown during the past year. the teacher was. The UK has a particularly Currently, the whole system is strong edtech market, attracting based on the premise that you 41% of all investment in the are not allowed to fail. What we education sector in 2019, for should be doing is asking ‘what example. The share from venture are you good at?’, and directing capital has grown, with almost our energy at maximising a $1bn ($857m) raised by edtech pupil’s strengths. companies in the UK since 2014. Edtech can assist in shifting There are two broad categories the emphasis on education of companies. First is the away from end-of-year exams. hardware, including computers, Covid-19 has shown that we phones and other digital devices. can measure progress and The second category relates to learning without the blunt software, including platforms instrument of an exam. and apps, which have been Edtech can enable ongoing created in almost every subject, assessment of each pupil. from maths, English and We can personalise education, languages to more creative ones just as we are doing with such as art and music. medicine and fi tness, so that each pupil can be given slightly A change of mindset diff erent levels to work on, Broadly speaking, there is a depending on their aptitude fundamental misstep in the and understanding. way education is approached. Our fi rm, Pembroke VCT, is Exams are seen as the measure addressing this issue through of success, but we place too Kinteract, which supports much emphasis on them. schools with a platform that They encourage individualism assesses progress in real time and selfi shness, yet modern and leaves young people with workplaces require completely a digital learning record.

014-015 _WIsupp_0421.indd 14 18/03/2021 10:14 Education technology Stocks and shares ISAs | April 2021 15

have made their resources widely skills, as it’s such a key part of available online. everyday life, in the way Furthermore, technology has we shop, communicate and opened up the world by enabling consume entertainment. The Covid-19 crisis has shone a pupils to fi nd out about and One of our investments, spotlight on the way we learn, and connect with diff erent countries Smartify, allows people to the growth of edtech offers wider and continents. For example, a explore art galleries and school in the UK may partner museums, and learn from the and deeper learning for everyone with a poorly resourced school world’s best curators via its in Africa so the pupils can digital platform and app. learn about each other’s should be used to democratise cultures and countries. Equipped to learn education rather than exacerbate Edtech is not just about the Though edtech off ers lots of the digital divide. young. It off ers learning and opportunities, there are some Up to 1.8 million children in the skills development for people hurdles. The fi rst is access. The UK do not have access to a laptop, of all ages. It is important all government is guided by the desktop or tablet at home. The age groups acquire digital ‘levelling up’ agenda, and edtech government has been working to address this and must be commended for having already delivered more than 800,000 laptops and tablets to schools. But hardware aside, it is also about broadband connectivity. Almost a quarter of children from the poorest families have no home access to broadband. Again, the government recognises the problem and has a bold ambition to provide a reliable internet connection to all pupils by 2025. While we are champions of technology, we acknowledge its limitations and dangers. As the father of three young children, I know the perils of too much screen time. Children and young people need face-to-face contact with teachers and interaction with their peers. Technology should be a complement to, rather than a substitute for, human interaction. We need to evolve our education system. The Covid crisis has shone a spotlight on the way we learn, and we need to take the opportunity to re-imagine. The growth of edtech off ers wider and deeper learning for everyone, as well as commercial opportunities and economic growth. Pembroke is likely to invest further in edtech as schools unleash the potential of young people. The late Lord Sacks, formerly chief Rabbi, was spot on when he said: “To defend a country you need an army, but to defend a civilisation you need education.” We hope we can play a part in edtech making a positive diff erence to millions of lives. ■

014-015 _WIsupp_0421.indd 15 18/03/2021 10:14 16 Healthcare Stocks and shares ISAs | April 2021

016-019 _WIsupp_0421.indd 16 18/03/2021 12:57 Healthcare Stocks and shares ISAs | April 2021 17 Healthy returns Healthcare investing off ers a diverse array of options and as sector performance has been fi ghting fi t, it pays to review your portfolio and get it in good shape

here has been a spotlight on the credit crunch. “I fi rmly the healthcare sector during believe healthcare will be more Tthe past year as nations important in the next decade have battled Covid-19 and the than it was going into the search for a vaccine became our pandemic,” he says, joining number-one priority. the consensus that the sector Shortcomings and under- will continue to benefi t from Juliet investment in healthcare services investment going forward. Schooling Latter around the world have been laid Research director, FundCalibre bare. At the same time, global Under the microscope co-operation and the amazing Many associate the healthcare things that can be achieved sector with large pharmaceutical by scientists and healthcare companies, but it is extremely practitioners have also been diverse. There is biotech, medical brought to light – along with the services, managed care, life investment opportunities. sciences and hospitals, to name James Douglas, co-manager of just a few areas. It now represents Polar Capital Global Healthcare 13.2% of the world index, Trust, sums it up perfectly: second only to the information “The authorisations to start technology sector (22.2%). administering the Covid-19 Performance of healthcare vaccines late in 2020 capped a stocks has also been good over remarkable journey of bravery, the past decade. The MSCI World/ determination, innovation, Health Care Index has risen by co-operation and cutting-edge 308.1%, compared with 194.3% science. The healthcare industry for the broader MSCI World. But continues to push scientifi c over the past year, the sector has boundaries – and pushing those lagged behind, returning 6.8% boundaries can translate into versus 10.5%1. commercial success.” Why is this? Marcus Watson, Dr Paul Jourdan, TB Amati portfolio manager at Morgan UK Smaller Companies fund Stanley , manager, notes that we often explains: “One of the virtues spend years trying to solve the of the healthcare industry is its problems of a crisis, as was predictability. Selling essential, the case with banks following non-discretionary products, such

016-019 _WIsupp_0421.indd 17 18/03/2021 12:57 18 Healthcare Stocks and shares ISAs | April 2021

as syringes or saline drips, End-stage renal disease leads means healthcare companies to dialysis, which costs $80,000 are usually relatively immune The need for better, more efficient (£57,600) per year per patient. to economic turbulence. “Being able to identify patients “Yet the pandemic has tested health services is a necessity not early, well before they progress that conventional wisdom with an option to dialysis, will lead to better the postponement of all but the outcomes for patients through most essential procedures. disease management and “Few people could have The obvious way to invest in reduce the burden on the health predicted non-discretionary healthcare is via a sector-specific system,” he says. product categories, such as product, such as the Polar Alexander Darwall, manager pacemakers, would have proved Capital Global Healthcare Trust, of the European Opportunities vulnerable to declining sales.” Schroder Global Healthcare or Trust, has almost one-third Framlington Health funds. (30.8%4) of the portfolio invested A shot in the arm Dani Saurymper, manager of in healthcare ideas. He says: Since the ‘vaccine rally’ at the the Axa fund, has been looking at “Though overall healthcare is end of 2020, however, things the success stories coming out of an attractive sector, not all sub- have started to look up. the pandemic. sectors or companies are doing John Bowler, manager of “Home health has been a big well. Selectivity is vital.” Schroder Global Healthcare winner, with the thesis of moving One example is BioMérieux, the Fund, says: “The ‘recovery medical care out of a hospital French diagnostics company, trade’ seen in the wider market and into the home,” he says. which has developed ‘gold is being mirrored in healthcare. “Related to this is healthcare IT standard’ Covid-19 tests. Sub-sectors most impacted and the idea of remote patient “Its wider portfolio of in-vitro by Covid-19 – hospitals, care monitoring, either in the home and molecular diagnostics meets providers and dental care, for or on the ward, to enable more the need for better outcomes, example - are seeing a recovery in efficient delivery of care. faster tests and more accurate procedure/patient volume that is “Two other areas where diagnoses. For infections like helping drive stock performance.” we’re searching for good pneumonia and meningitis, it And Bowler believes the mid- opportunities in a post- is vital to diagnose and treat to long-term prospects are also Covid-19 environment are patients as quickly as possible.” looking good. vision care, given the significant Another example is Novo “There is accelerating increase in screen time adults Nordisk, a long-standing demand for healthcare services and children are having to investment. “It’s the world from certain demographics, endure due to Covid-19, and leader in the production of particularly as the leading edge of mental health, which could see insulin and drugs used to treat the baby-boomers reach 75 years a spike in incidence coming out diabetes,” says Darwall. of age and start requiring more of lockdowns.” “Diabetes is a pandemic. Its complex procedures,” he says. Such is the appeal of the sector incidence is increasing at about “Globally, governments face at the moment that a number of 5% per annum worldwide. budget pressures with the more generalist funds are also Obesity is often a factor, so growing demand for health placing big bets on stocks. recognition that the new class services. The need for better, The TB Amati UK Smaller of drugs, GLP-1, can treat both more efficient health services Companies Fund currently has a diabetes and reduce obesity is is a necessity not an option.” 20.7%3 weighting, for example. a massive development.” The Covid-19 lockdown period “We are especially excited about also shone a light on the value data in healthcare and gene- A broad church of telehealth and digital health therapies,” says manager Paul The Comgest Growth Europe ex services, which are structural Jourdan. “By looking at data, it UK Fund has had a consistently trends still relatively early is possible to shorten treatment high exposure to quality growth in their adoption. The rise of development times, increase companies in the healthcare the middle-class in emerging the probability of getting a sector for over two decades. markets indicates demand drug to market, generate better Today, exposure is 27.5%3. for drug treatments and outcomes for patients and reduce “Our healthcare exposure medical supplies will increase the cost of treating patients.” ranges from: Straumann, a exponentially in the future. He cites the example of dental implant manufacturer; However, careful stock RenalytixAI, which has developed Orpea, the largest operator selection remains key to KidneyIntelX, a diagnostic test of nursing homes worldwide; successful investing in this combined with an artificial hearing aids player Amplifon; sector. Risks such as regulation, intelligence algorithm that Ambu in medtech; research and capital intensity, innovation, predicts progression to end-stage production outsourcing players competition and pricing remain renal disease (kidney failure) for like Icon or Lonza; and blue-chip ever present. patients with type two diabetes. drug companies such as Novo

016-019 _WIsupp_0421.indd 18 18/03/2021 12:57 Healthcare Stocks and shares ISAs | April 2021 19

who has a 19.9%4 weighting to the sector, adds: “Healthcare off ers ESG investors access to a broad range of businesses operating in animal health, life sciences, diagnostics, medical technology, R&D and biotech to name a few. “At a company level, both the UK giants – AstraZeneca and GlaxoSmithKline – are well placed, with the former delivering a not-for-profi t vaccine in the fi ght against the pandemic. “GlaxoSmithKline is due to split into two entities, with the spin-out of the consumer division, leaving a business that is solely focused on R&D. The company has been ranked Nordisk in diabetes and Roche markets. This provides structural the highest in the ‘Access in oncology,” says co-manager growth for companies such as to Medicine Index’ with its Alistair Wittet. Shenzhen Mindray, which is leadership in supporting “We believe the healthcare the largest medical equipment healthcare infrastructure in sector will continue to provide manufacturer in China with the developing world.” a backdrop of many diverse, products that include ventilators Pablo Berrutti, senior attractive, structural growth and ICU monitors.” investment specialist at Stewart trends for decades to come.” Investors Sustainable Funds There are also opportunities Future fi t Group, concludes: “When it further afi eld. JP Morgan China Finally, the healthcare sector also comes to healthcare, for us the Growth & Income Trust has off ers ESG opportunities. Laurie quality of the franchise will 15.9%4 invested in the sector – Don, a member of the Liontrust include whether the company is almost 10% more than the index. Sustainable Investment team, making essential health services “Before the outbreak of says they invest in the sector more accessible, aff ordable Covid-19, China lacked because its innovation is vital for and whether they are fi lling widespread diagnostics and a more sustainable future. signifi cantly unmet demand. healthcare facilities, and had “There are signifi cant “We currently hold companies shortages of broad-based advances in technology in medical devices, diagnostics vaccinations for illnesses such across areas such as gene and medicines. One example of as the regular fl u,” explains editing and DNA sequencing, this is Hoya Lens UK. With 4.6 portfolio manager Howard Wang. and these are revolutionising billion people globally requiring “As consumer expectations how we think about treatment,” vision correction and almost continue to rise, a focus on he explains. 60% not having access, there is a improving healthcare spending “The traditional model has a massive unmet need, which Hoya in China remains a clear large element of trial and error, is well placed to provide. structural trend for investors, with people seeking help when “Vision correction is also an especially in areas such as they feel ill and hoping whatever important intervention that can outsourced clinical testing, drug or procedure prescribed is be made to support education.” ■ diagnostics and vaccinations. eff ective. But this intervention “The pandemic has shone often proves too late. Sources a light on under-investment “In contrast, we are moving 1MSCI World Index, 31 Jan ’21 in hospitals where ICU beds towards a more personalised 2FE fundinfo, total returns in represent just 5% of hospital system where we can understand sterling to 17 Feb ’21 beds versus 15%+ in developed how someone’s genetic makeup 3Fund factsheet, 31 Jan ’21 makes them vulnerable to 4Fund fact sheet, 31 Dec ’21 certain diseases, and this is opening up new ways to counter Past performance is not a reliable conditions such as cancer, guide to future returns. You may We are moving towards understanding dementia and Parkinson’s.” not get back the amount originally Ketan Patel, co-manager of invested and tax rules can change. how someone’s genetic makeup makes the EdenTree Responsible & Juliet’s views are her own and do them vulnerable to certain diseases Sustainable UK Equity Fund, not constitute fi nancial advice.

016-019 _WIsupp_0421.indd 19 18/03/2021 12:57 20 Investment trusts | 1 What Investment | April 2021

Investment trusts All data as at 28 February 2021

Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC £ £ £ £ £ % % £ £ £ £ £ % % FUND 6Val MONTHS Rnk Val 1 YEAR Rnk 3Val YEARS Rnk 5Val YEARS Rnk 10Val YEARS Rnk YIELD DISC FUND 6 MONTHSVal Rnk 1Val YEAR Rnk Val 3 YEARS Rnk 5Val YEARS Rnk 10Val YEARS Rnk YIELD DISC £ £ £ £ £ % % £ £ £ £ £ % % ASIA PACIFIC COUNTRY SPECIALIST: EUROPE - EX UK Aberdeen New Dawn 124 5 139 5 143 6 243 6 237 7 1.37 -11.02 JPMorgan Russian Securities 105 1 105 1 134 1 264 1 132 1 5.45 -12.70 Asia Dragon 127 4 136 6 146 3 243 5 324 4 0.91 -9.76 Average/Total 105 1 105 1 134 1 264 1 132 1 5.45 -12.70 Asia 135 2 149 4 143 5 249 4 319 5 3.51 -7.21 DEBT - DIRECT LENDING Pacific Assets 117 7 133 7 128 7 179 7 300 6 0.96 -9.05 Alternative Credit Investments plc 105 7 107 3 129 2 132 3 - - 5.52 -5.16 Pacific Horizon 142 1 252 1 239 1 505 1 658 1 0.04 -6.08 BioPharma Credit 93 10 96 7 116 3 - - - - 7.17 -3.37 Schroder AsiaPacific 132 3 150 3 146 4 266 3 352 3 1.28 -7.05 GCP Asset Backed Income 99 9 96 6 110 4 122 4 - - 6.92 -9.09 Schroder Asn Total Return Inv. Company 123 6 156 2 147 2 276 2 423 2 1.30 0.93 Honeycomb Investment Trust 123 2 112 2 107 5 135 2 - - 8.42 -4.73 Average/Total 129 7 159 7 156 7 280 7 373 7 1.34 -7.03 Riverstone Credit Opportunities Income 118 3 87 9 ------8.31 -17.40 ASIA PACIFIC INCOME RM Secured Direct Lending 114 5 101 5 104 6 - - - - 7.49 -6.22 Aberdeen Asian Income 122 2 121 3 121 2 184 3 222 3 4.11 -10.20 RM Secured Direct Lending ZDP 2021 100 8 101 4 ------1.91 Henderson Far East Income 107 4 111 4 106 4 160 4 189 4 7.23 1.89 Secured Income Fund 106 6 94 8 99 7 110 5 - - 12.73 -14.45 JPMorgan Asia Growth & Income plc 125 1 146 1 160 1 307 1 305 2 3.20 1.09 SME Credit Realisation Fund 115 4 82 10 74 8 90 6 - - 8.61 -27.03 Schroder Oriental Income 120 3 133 2 120 3 185 2 346 1 3.75 -3.92 VPC Specialty Lending Investments 146 1 130 1 157 1 155 1 - - 9.41 -16.10 Average/Total 118 4 128 4 127 4 209 4 265 4 4.57 -2.78 Average/Total 112 10 100 10 112 8 124 6 - - 8.29 -10.55 ASIA PACIFIC SMALLER COMPANIES DEBT - LOANS & BONDS Aberdeen Standard Asia Focus 120 2 124 1 120 1 174 2 253 2 1.56 -11.92 Axiom European Financial Debt Fund 112 4 100 8 98 8 116 9 - - 6.94 -11.75 Fidelity Asian Values 125 1 123 2 117 2 192 1 310 1 2.03 -8.80 City Merchants High Yield 112 5 111 1 122 1 142 3 188 3 5.39 -7.97 Scottish Oriental Smaller Cos 115 3 114 3 103 3 143 3 207 3 0.12 -10.60 CQS New City High Yield 109 7 97 9 109 5 138 5 176 4 9.51 -7.48 Average/Total 120 3 120 3 114 3 170 3 257 3 1.24 -10.44 CVC Credit Partners Euro Opps EUR 117 2 102 7 97 9 139 4 - - 4.75 -3.79 BIOTECHNOLOGY & HEALTHCARE CVC Credit Partners Euro Opps GBP 122 1 108 2 106 7 135 7 - - 4.60 -6.87 Henderson Diversified Income 105 10 103 5 115 3 136 6 232 2 5.24 -9.39 Adams 120 3 100 9 203 2 115 6 - - - 129.06 Invesco Enhanced Income 110 6 107 3 114 4 150 2 260 1 6.99 -5.07 BB Healthcare 117 4 140 4 185 3 - - - - 3.27 -0.28 M&G Credit Income Investment 97 12 92 10 ------4.59 -5.21 Biotech Growth 122 2 169 1 205 1 251 1 934 1 - -5.64 NB Distressed Debt Inv Extended Life 102 11 62 12 54 11 60 11 - - 1.76 -40.01 International Biotechnology 109 5 150 3 151 5 221 3 636 2 3.70 0.32 NB Distressed Debt New Glb 57 13 41 13 37 12 45 12 - - 1.57 -49.58 Polar Capital Glb Healthcare 100 9 112 6 126 7 148 5 281 4 0.85 -10.57 NB Distressed Debt 107 8 79 11 69 10 75 10 83 5 - -14.19 Polar Capital Glb Healthcare ZDP 2024 104 8 102 8 108 8 - - - - - 0.34 NB Global Monthly Income Fund Ltd GBP 106 9 103 6 109 6 127 8 - - 5.60 -11.89 RTW Venture 153 1 150 2 ------13.86 TwentyFour Select Monthly Income 112 3 106 4 116 2 159 1 - - 6.75 1.70 108 7 104 7 133 6 210 4 - - 0.90 25.86 Average/Total 105 13 93 13 95 12 119 12 188 5 5.31 -13.19 Worldwide Healthcare 109 6 129 5 153 4 224 2 610 3 0.69 1.37 Average/Total 116 9 129 9 158 8 195 6 615 4 1.88 17.15 DEBT - STRUCTURED FINANCE COMMODITIES & NATURAL RESOURCES Blackstone Loan Financing Limited 110 6 93 5 98 5 144 3 - - 10.61 -21.62 Chenavari Toro Income Fund Limited 114 4 102 3 117 1 152 1 - - 14.55 -19.93 Baker Steel Resources 127 6 165 6 166 2 589 1 84 3 - -11.76 EJF Investments 110 7 82 8 94 6 - - - - 8.49 -23.79 BlackRock Energy and Resources Income 154 4 176 5 142 4 215 5 105 2 4.30 -2.62 EJF Investments ZDP 2022 103 9 101 4 114 2 ------0.89 BlackRock World Mining Trust plc 147 5 198 4 177 1 394 2 124 1 3.80 -0.37 EJF Investments ZDP 2025 103 8 ------0.08 CQS Natural Resources G&I 158 3 209 2 142 5 226 4 69 4 4.38 -13.40 Fair Oaks Income 2017 140 2 92 6 88 7 148 2 - - 14.84 -3.02 Geiger Counter 165 2 258 1 164 3 241 3 28 6 - 6.52 Marble Point Loan Financing 145 1 85 7 ------9.27 -11.81 Global Resources IT 100 7 83 9 27 8 69 8 - - - 90.97 TwentyFour Income 114 5 108 2 113 3 141 4 - - 5.87 -3.46 Golden Prospect Precious Metal 73 9 162 7 139 6 189 6 40 5 - -10.62 UK Mortgages 120 3 114 1 100 4 105 5 - - 8.25 -9.81 Riverstone Energy 95 8 96 8 25 9 36 9 - - - -33.85 Average/Total 118 9 97 8 103 7 138 5 - - 10.27 -10.47 Tiger Royalties and Investments 209 1 209 3 115 7 92 7 21 7 - 118.75 Average/Total 136 9 173 9 122 9 228 9 67 7 4.16 15.96 ENVIRONMENTAL COUNTRY SPECIALIST: ASIA PACIFIC - EXCLUDING JAPAN Impax Environmental Markets 130 2 145 1 185 1 300 1 422 1 0.53 5.92 Jupiter Green 131 1 137 2 148 3 211 2 386 2 0.91 3.27 Aberdeen New India 122 11 117 10 116 8 179 7 223 7 0.04 -13.71 Menhaden 118 3 109 3 148 2 152 3 - - 0.40 -26.88 Aberdeen New Thai 106 12 104 12 82 11 126 10 233 6 4.24 -11.42 Average/Total 126 3 130 3 160 3 221 3 404 2 0.61 -5.90 Ashoka India Equity Investment 126 9 132 8 ------0.09 Baillie Gifford China Growth 145 1 172 4 172 3 260 3 319 5 1.54 0.74 EUROPE Fidelity China Special 135 5 197 2 186 2 375 2 460 3 1.07 -3.48 Baillie Gifford European Growth Tst 118 2 176 1 161 2 241 1 307 3 2.62 1.49 India Capital Growth 131 7 143 7 89 10 159 8 182 8 - -15.10 BlackRock Greater Europe 119 1 141 2 168 1 230 2 321 2 1.18 1.65 JPMorgan China Growth & Income plc 132 6 216 1 225 1 492 1 493 2 3.99 -8.38 European Opportunities Trust 103 7 90 8 97 7 130 8 277 6 0.51 -12.01 JPMorgan Indian 124 10 113 11 101 9 157 9 176 9 - -13.20 Fidelity European Trust 101 8 114 6 131 3 187 4 287 4 2.42 -7.67 Vietnam Enterprise 138 3 146 6 125 6 ------12.40 Henderson European Focus Trust 112 4 123 4 113 5 156 5 282 5 2.23 -11.12 VietNam Holding 137 4 131 9 133 5 218 6 559 1 - -18.65 Henderson EuroTrust 110 6 126 3 130 4 190 3 330 1 1.79 -7.34 VinaCapital Vietnam Opp Fund 130 8 156 5 123 7 260 4 419 4 2.03 -12.04 JPMorgan European Growth Pool 112 5 118 5 105 6 150 6 216 8 1.43 -11.35

Weiss Korea Opportunity 140 2 192 3 169 4 238 5 - - 1.54 -4.68 © 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, distributed or combined with other third-party data without prior written consent; and (3) is not warranted to be accurate, complete or timely. Average/Total 131 12 152 12 138 11 247 10 341 9 2.06 -9.35 Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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020-023 _WIsupp_0421.indd 20 18/03/2021 10:14 Investment trusts | 2 What Investment | April 2021 21

Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC FUND 6 MONTHS£ 1 YEAR£ 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% FUND 6 MONTHS£ 1 YEAR£ 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% Val £Rnk Val £Rnk Val £Rnk Val £Rnk Val £Rnk % % Val£ Rnk Val £ Rnk Val £Rnk Val £ Rnk Val £ Rnk % % JPMorgan European Income Pool 116 3 97 7 95 8 132 7 217 7 5.02 -12.18 Utilico Emerging Markets 111 13 99 13 97 10 131 10 172 7 3.92 -14.66 Average/Total 111 8 123 8 125 8 177 8 280 8 2.15 -7.32 Average/Total 119 14 118 14 113 13 184 11 183 10 2.77 -9.43 EUROPEAN SMALLER COMPANIES GLOBAL EQUITY INCOME European Assets 117 3 136 3 110 4 156 4 338 3 5.87 -10.96 Henderson International Income 105 6 101 7 102 5 156 6 - - 3.97 -7.33 JPMorgan European Smaller Comp 116 4 131 4 115 2 188 3 313 4 1.47 -13.65 Invesco Select Glo Eq Inc 116 3 113 4 114 4 161 5 310 1 3.36 -2.84 Montanaro European Smaller 121 2 163 1 203 1 320 1 404 2 0.58 3.14 JPMorgan Global Growth & Income 114 4 134 1 136 1 241 1 300 2 3.36 1.37 TR European Growth 134 1 155 2 114 3 232 2 453 1 1.70 -12.90 Majedie Investments 127 1 120 3 94 7 111 7 235 5 4.75 -15.36 Average/Total 122 4 146 4 136 4 224 4 377 4 2.40 -8.59 Murray International 117 2 109 5 102 6 161 4 184 6 4.78 -1.14 FARMLAND & FORESTRY Scottish American 106 5 121 2 133 2 209 2 275 3 2.69 2.64 Securities Trust of Scotland 104 7 102 6 124 3 170 3 251 4 2.85 -0.58 Cambium Global Timberland 98 1 71 1 67 1 105 1 12 1 - -32.95 Average/Total 113 7 114 7 115 7 173 7 259 6 3.68 -3.32 Average/Total 98 1 71 1 67 1 104 1 12 1 - -32.95 GLOBAL HIGH INCOME FINANCIALS Blue Planet Investment Trust 121 1 85 1 79 1 143 1 - - 8.42 -19.55 Polar Capital Global Financials 144 1 122 1 116 1 196 1 - - 2.78 4.92 Average/Total 121 1 85 1 79 1 143 1 - - 8.42 -19.55 Trian Investors 1 132 2 111 2 ------0.43 -17.18 Average/Total 138 2 117 2 116 1 196 1 - - 1.60 -6.13 GLOBAL SMALLER COMPANIES FLEXIBLE INVESTMENT BMO Global Smaller Companies 119 4 116 5 114 4 166 4 280 4 1.14 -8.97 Edinburgh Worldwide 127 3 190 1 223 1 445 1 613 1 - -2.20 Aberdeen Diversified Income & Growth 106 19 98 20 92 19 103 16 117 16 5.91 -16.22 Herald 128 2 156 2 180 2 315 2 421 2 - -11.20 BMO Managed Portfolio Growth 121 6 135 1 133 2 189 4 260 2 - 3.87 North Atlantic Smaller Cos 135 1 118 4 141 3 170 3 343 3 0.76 -27.24 BMO Managed Portfolio Income 112 17 110 9 111 12 149 8 199 8 4.52 3.13 Smithson Investment Trust 105 5 138 3 ------2.76 105 21 96 22 106 16 135 14 199 7 2.30 -23.70 Average/Total 123 5 144 5 165 4 274 4 414 4 0.95 -9.37 Capital Gearing 104 22 108 14 122 4 142 12 163 12 0.91 1.96 CIP Merchant Capital 116 10 102 16 56 21 ------34.73 GROWTH CAPITAL Hansa Investment Company Ltd 'A' Class A 114 14 113 6 104 18 144 11 120 15 0.81 -34.25 Limited 144 1 175 1 ------12.86 Hansa Investment Company Ltd 124 4 120 4 111 11 151 6 122 14 1.57 -32.25 Jade Road Investments Limited 94 4 87 4 51 1 21 2 3 1 - -67.12 Invesco Select Balanced Risk Alloc 116 12 109 11 113 8 138 13 - - - -2.45 Schiehallion Fund 131 2 129 3 ------21.41 Investment Company 113 16 90 23 105 17 103 17 197 10 0.66 -2.47 Schroder UK Public Private Tst plc 123 3 133 2 48 2 41 1 - - - -22.16 JPMorgan Global Core Real Assets 90 24 99 19 ------4.13 6.78 Average/Total 123 4 131 4 49 2 31 2 3 1 - -13.75 JPMorgan Multi-Asset 106 20 99 18 ------4.45 -12.98 HEDGE FUNDS JZ Capital Partners 88 25 30 25 17 22 21 19 24 17 - -71.43 Alternative Liquidity Fund 101 6 78 10 54 10 141 7 - - - -59.59 JZ Capital Partners ZDP 2022 131 2 78 24 77 20 88 18 - - - -28.87 BH Global GBP 105 5 128 2 137 4 155 5 178 6 - -6.10 Livermore Investments 117 9 109 12 113 9 206 2 413 1 7.19 -29.23 BH Global USD 100 7 118 6 144 3 166 3 220 3 - 0.20 Miton Global Opportunities 130 3 119 5 111 13 202 3 223 5 - -2.05 BH Macro GBP 98 9 125 4 164 2 163 4 195 4 - -2.33 New Star Investment Trust 117 8 110 10 114 6 187 5 207 6 1.12 -26.69 BH Macro USD 94 10 114 7 166 1 180 2 244 2 - 0.54 Personal Assets 98 23 109 13 115 5 131 15 167 11 1.26 0.31 Boussard & Gavaudan EUR 127 2 122 5 109 7 146 6 183 5 - -18.67 RIT Capital Partners 115 13 113 7 114 7 146 9 198 9 1.62 -6.48 Boussard & Gavaudan GBP 120 4 113 8 105 8 130 9 161 7 - -21.24 Ruffer Investment Company 116 11 134 2 123 3 146 10 151 13 0.69 1.51 Gabelli Merger Plus+ Trust 99 8 95 9 83 9 - - - - 6.49 -26.01 Seneca Global Income & Growth Trust 120 7 110 8 112 10 151 7 227 4 3.85 -2.36 Highbridge Tactical Credit Fund 122 3 126 3 110 6 131 8 144 8 - -5.66 UIL 165 1 133 3 181 1 321 1 259 3 3.06 -26.12 Third Point Investors USD 137 1 134 1 136 5 190 1 321 1 - -16.17 UIL ZDP 2022 109 18 102 15 109 14 - - - - - 1.85 Average/Total 110 10 115 10 121 10 156 9 206 8 6.49 -15.50 UIL ZDP 2024 113 15 97 21 108 15 ------1.12 UIL ZDP 2026 121 5 102 17 ------2.20 INFRASTRUCTURE Average/Total 115 25 105 25 107 22 150 19 191 17 2.75 -13.45 101 3 101 4 155 1 191 1 342 1 3.32 16.11 BBGI Global Infrastructure 105 1 115 1 148 2 168 2 - - 4.32 30.52 GLOBAL GCP Infrastructure Investment 88 7 93 6 105 6 117 6 180 4 7.16 -3.13 All Active Asset Capital Limited 614 1 19657 1 860 1 237 5 - - - 2535.71 HICL Infrastructure PLC 100 4 101 3 132 3 135 4 240 3 5.03 9.02 Alliance Trust 108 13 119 8 125 10 194 10 305 7 1.59 -7.87 Infrastructure India 96 6 90 7 38 7 8 7 2 5 - -87.91 AVI Global Trust 123 2 128 5 128 8 219 8 222 11 1.80 -7.91 International Public Partnerships 103 2 109 2 127 4 147 3 295 2 4.67 10.67 Bankers 10 17 12 17 13 17 21 17 33 16 2.02 -0.33 Sequoia Economic Infrastructure Inc 100 5 99 5 117 5 134 5 - - 5.96 4.56 Brunner 111 9 107 13 121 12 195 9 269 10 2.26 -13.33 Average/Total 99 7 101 7 118 7 129 7 212 5 5.08 -2.88 EP Global Opportunities 103 14 104 14 98 15 135 15 180 15 2.19 -7.70 F&C Investment Trust 109 10 114 12 122 11 191 11 299 8 1.50 -7.89 INFRASTRUCTURE SECURITIES JPMorgan Elect Managed Growth 120 6 118 10 127 9 177 12 329 5 1.78 -3.63 Ecofin Global Utilities & Infra 104 2 112 2 174 1 - - - - 4.07 0.35 Keystone Positive Change Investment 121 5 103 15 99 14 107 16 180 14 4.00 -6.08 Premier Miton Glb Renewables Tst 122 1 133 1 149 2 190 1 211 1 4.49 -1.44 Lindsell Train 122 3 139 4 153 5 276 4 714 2 3.18 9.38 Average/Total 113 2 123 2 161 2 190 1 211 1 4.28 -0.54 Manchester & London 89 16 118 9 135 7 283 3 197 12 2.43 -11.63 INSURANCE & REINSURANCE STRATEGYIES Martin Currie Global Portfolio 108 12 128 6 157 4 219 7 363 4 1.17 2.46 CATCo Reinsurance Opps C 114 1 117 1 57 1 - - - - 10.23 -3.37 Mid Wynd International Inv Tr PLC O Inc 108 11 125 7 146 6 220 6 308 6 0.87 2.45 CATCo Reinsurance Opps 100 2 100 2 38 2 26 1 53 1 11.78 -18.67 Monks 119 7 153 3 172 3 349 2 420 3 0.19 3.29 Life Settlement Assets A 99 3 99 3 ------14.16 Scottish Investment Trust 97 15 101 16 94 16 140 14 186 13 3.30 -13.60 Life Settlement Assets B 80 4 83 4 ------48.17 Scottish Mortgage 118 8 203 2 252 2 472 1 881 1 0.31 -2.74 Average/Total 99 4 100 4 48 2 26 1 53 1 11.00 -21.09 Witan 121 4 117 11 114 13 173 13 283 9 2.45 -7.14 JAPAN Average/Total 135 17 1267 17 171 17 212 17 323 16 1.94 144.91 Aberdeen Japan 118 5 129 4 119 4 170 4 269 4 2.13 -10.58 GLOBAL EMERGING MARKETS Baillie Gifford Japan 130 1 158 2 127 3 244 3 518 1 0.43 4.38 Aberdeen Emerging Markets 127 4 131 5 125 5 211 4 175 6 3.33 -12.71 CC Japan Income & Growth 113 6 107 6 92 6 143 6 - - 3.50 -10.90 Africa Opportunity 94 14 81 14 61 13 78 11 69 10 3.58 -29.41 Fidelity Japan Trust 118 4 146 3 140 2 263 1 356 3 - -4.75 Barings Emerging EMEA Opportunities 113 12 104 12 99 9 189 6 117 9 3.44 -12.96 JPMorgan Japanese 121 2 172 1 155 1 255 2 398 2 0.82 -1.74 BlackRock Frontiers 128 2 117 8 83 11 137 9 169 8 4.31 -0.69 Schroder Japan Growth 120 3 119 5 96 5 152 5 240 5 2.46 -12.78 Fundsmith Emerging Equities Trust 120 7 132 3 111 7 144 8 - - 0.24 -5.70 Average/Total 120 6 138 6 121 6 204 6 356 5 1.87 -6.06 Genesis Emerging Markets Fund 116 10 123 7 130 4 209 5 188 5 1.47 -7.36 JAPANESE SMALLER COMPANIES Gulf 118 9 107 10 163 1 156 7 258 2 2.12 -4.93 Atlantis Japan Growth 115 3 140 3 108 3 207 3 316 3 3.82 -10.33 JPMorgan Emerging Markets 128 2 147 1 160 2 276 1 272 1 1.07 0.48 AVI Japan Opportunity 103 5 112 4 ------0.86 -1.00 JPMorgan Global Emerg Mkts Inc 132 1 128 6 124 6 217 3 211 3 3.46 -3.62 Baillie Gifford Shin Nippon 120 1 165 1 122 2 256 1 688 1 - 3.16 Jupiter Emerging & Frontier Income 119 8 109 9 103 8 - - - - 4.44 -6.45 JPMorgan Japan Small Cap G&I 118 2 149 2 129 1 224 2 367 2 3.98 -9.53 Mobius Investment Trust 113 11 132 4 ------5.37 Nippon Active Value 114 4 106 5 ------3.75 ScotGems 122 6 105 11 76 12 ------20.81 Average/Total 114 5 134 5 120 3 229 3 457 3 2.89 -4.29 Templeton Emerging Mkts Invmt Tr TEMIT 123 5 139 2 139 3 275 2 197 4 1.91 -7.79

020-023 _WIsupp_0421.indd 21 18/03/2021 10:14 22 Investment trusts | 3 What Investment | April 2021

Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC FUND 6 MONTHS£ 1 £YEAR 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% FUND 6 MONTHS£ 1 YEAR£ 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% Val £Rnk Val £Rnk Val £Rnk Val £Rnk Val £Rnk % % Val£ Rnk Val £Rnk Val £Rnk Val £Rnk Val £Rnk % % LATIN AMERICA Macau Property Opportunities 109 3 72 3 36 3 60 2 62 2 - -57.32 Average/Total 112 4 89 4 48 3 58 3 47 3 - -47.29 Aberdeen Latin American Income 114 2 94 1 88 1 152 2 88 1 6.25 -3.47 BlackRock Latin American 116 1 90 2 86 2 155 1 79 2 5.10 -4.22 PROPERTY - UK COMMERCIAL Average/Total 115 2 92 2 87 2 153 2 83 2 5.68 -3.84 AEW UK REIT 107 9 100 7 108 6 135 2 - - 9.76 -12.65 LEASING Alina Holdings Plc 65 17 65 16 66 15 69 10 34 6 - -30.63 Alternative Income REIT PLC 107 10 95 8 78 11 - - - - 8.33 -21.71 Amedeo Air Four Plus 89 7 39 7 33 6 41 4 - - 17.36 -81.64 BMO Commercial Property Trust 106 11 76 13 57 16 68 11 113 5 3.88 -39.47 Doric Nimrod Air One 108 5 81 4 55 5 60 3 107 1 25.00 -52.16 BMO Real Estate Investments 109 8 100 6 83 10 100 6 168 3 4.39 -22.12 Doric Nimrod Air Three 140 2 82 3 61 3 72 1 - - 20.89 -17.54 Custodian REIT 110 7 91 10 96 8 113 3 - - 3.98 1.63 Doric Nimrod Air Two 147 1 84 2 57 4 67 2 - - 22.78 -42.37 Drum Income Plus REIT 80 16 39 17 36 17 35 12 - - 9.38 -40.27 DP Aircraft I 29 8 4 8 3 8 4 6 - - - -95.39 Ediston Property Investment Company 141 1 94 9 75 13 89 9 - - 7.24 -16.95 KKV Secured Loan Fund C 104 6 62 5 61 2 - - - - 0.02 -49.39 LXI REIT 116 5 106 5 144 4 - - - - 4.83 2.66 KKV Secured Loan Fund 119 4 48 6 31 7 29 5 - - 0.04 -48.88 Regional REIT 104 13 74 14 98 7 107 4 - - 8.22 -18.62 Tufton Oceanic Assets 119 3 91 1 111 1 - - - - 7.22 1.74 Schroder Real Estate Invest 140 2 88 12 75 14 89 8 186 1 5.15 -28.88 Average/Total 107 8 61 8 52 8 45 6 107 1 13.33 -48.20 Standard Life Inv. Prop. Inc. 117 3 74 15 77 12 95 7 168 2 4.64 -23.60 LIQUIDITY FUNDS Supermarket Income REIT 102 15 110 4 129 5 - - - - 5.45 4.97 Invesco Select Liquidity 100 2 99 2 101 2 101 2 104 2 0.79 -3.88 Tritax Big Box 117 4 145 1 147 2 170 1 - - 3.53 18.04 JPMorgan Elect Managed Cash 100 1 101 1 104 1 105 1 106 1 0.39 -0.65 UK Commercial Property REIT 105 12 89 11 89 9 107 5 147 4 2.58 -17.67 Average/Total 100 2 100 2 102 2 103 2 105 2 0.59 -2.26 Urban Logistics REIT plc 103 14 110 3 145 3 - - - - 4.88 2.61 NORTH AMERICA Warehouse REIT 114 6 121 2 149 1 - - - - 4.98 9.46 Baillie Gifford US Growth 133 1 231 1 ------0.57 Average/Total 108 17 93 17 97 17 98 12 136 6 5.70 -13.72 BlackRock North American 112 4 107 4 120 3 172 3 - - 4.57 -6.68 PROPERTY - UK HEALTHCARE Gabelli Value Plus+ Trust 126 2 132 3 123 2 175 2 - - 0.06 -6.26 Impact Healthcare REIT 113 1 110 1 125 1 - - - - 5.72 2.31 JPMorgan American 112 5 132 2 151 1 224 1 473 1 1.09 -4.88 Target Healthcare REIT 106 2 103 2 124 2 132 1 - - 6.11 3.50 Middlefield Canadian Income 116 3 102 5 112 4 165 4 156 3 5.51 -16.58 Average/Total 109 2 106 2 124 2 132 1 - - 5.92 2.90 North American Income Trust 105 6 92 6 102 5 161 5 244 2 3.96 -14.16 PROPERTY - UK RESIDENTIAL Average/Total 117 6 133 6 122 5 179 5 291 3 3.04 -8.19 100 4 118 2 120 3 - - - - 5.03 0.54 NORTH AMERICAN SMALLER COMPANIES GCP Student Living 112 2 84 5 123 2 137 1 - - 0.67 -11.76 JPMorgan US Smaller Companies 141 1 141 1 156 1 263 1 469 1 0.58 3.15 Ground Rents Income Fund Plc 80 6 77 6 61 6 67 2 - - 6.24 -42.13 Jupiter US Smaller Companies 122 2 118 2 143 2 207 2 278 2 - -9.64 KCR Residential REIT 78 7 ------46.63 Average/Total 132 2 130 2 150 2 235 2 374 2 0.58 -3.24 PRS REIT 114 1 110 3 100 5 - - - - 4.60 -8.69 PRIVATE EQUITY Residential Secure Income 99 5 103 4 103 4 - - - - 5.56 -13.31 3i 120 8 114 11 132 7 304 2 514 2 3.05 23.08 Triple Point Social Housing REIT 102 3 122 1 124 1 - - - - 4.89 2.50 131 4 153 2 184 3 260 3 - - 4.69 -0.91 Average/Total 98 7 102 6 105 6 102 2 - - 4.50 -17.07 BMO Private Equity Trust 102 19 87 18 101 13 161 12 325 9 5.38 -22.25 PROPERTY SECURITIES Dunedin Enterprise 112 12 110 13 112 11 199 11 297 10 1.49 -18.98 TR Property 106 1 90 1 112 1 157 1 310 1 3.73 -8.80 Electra Private Equity 163 1 95 16 79 14 134 13 286 11 - -2.52 Average/Total 106 1 90 1 112 1 157 1 310 1 3.73 -8.80 EPE Special Opportunities 141 2 144 3 164 4 220 7 772 1 - -34.94 RENEWABLE ENERGY INFRASTRUCTURE FastForward Innovations Limited 103 15 185 1 67 17 74 16 124 13 - 15.32 Aquila European Renewables Income Fund 99 7 107 4 ------3.70 9.41 HarbourVest Global Priv Equity 115 11 122 8 159 5 217 9 504 3 - -16.52 Bluefield Solar Income Fund 105 3 104 6 141 2 188 1 - - 5.97 16.40 HgCapital Trust 122 6 143 4 208 1 393 1 452 5 1.41 12.35 Foresight Solar 96 11 94 12 114 6 145 6 - - 6.91 8.55 ICG Enterprise Trust 120 9 117 9 131 8 217 8 381 7 2.17 -14.44 Gore Street Energy Storage Fund 102 4 115 1 ------6.73 5.12 JPEL Private Equity 103 17 81 20 77 15 124 14 122 14 - -32.49 Greencoat Renewables 92 12 102 8 128 4 - - - - 5.34 16.60 LMS Capital 96 21 87 17 74 16 51 19 61 16 2.50 -42.09 Greencoat UK Wind 91 13 96 11 122 5 159 3 - - 5.71 4.42 NB Private Equity ZDP 2022 103 16 102 14 105 12 ------0.60 Gresham House Energy Storage 101 5 112 2 ------6.28 14.18 NB Private Equity ZDP 2024 103 18 98 15 ------2.01 JLEN Environmental Assets Group 97 8 103 7 132 3 158 4 - - 5.92 15.75 Oakley Capital Investments 123 5 124 7 189 2 224 6 214 12 1.57 -28.61 NextEnergy Solar 97 9 90 13 107 7 147 5 - - 7.16 0.17 Origo Partners 100 20 140 5 22 21 55 18 1 19 - -83.15 Octopus Renewables Infrastructure 107 1 110 3 ------4.39 18.78 Ord PLC 107 14 112 12 130 9 203 10 351 8 - -22.11 Renewables Infrastructure Grp 97 10 101 9 142 1 172 2 - - 5.47 8.46 Princess Private Equity 109 13 116 10 128 10 230 5 389 6 5.11 -14.61 SDCL Energy Efficiency Income 99 6 106 5 ------51.09 10.81 Reconstruction Capital II 77 22 65 22 44 19 59 17 19 17 - -39.97 US Solar Fund 106 2 98 10 ------5.24 8.81 St Peter Port Capital 117 10 82 19 40 20 23 20 6 18 - -78.30 Average/Total 99 13 103 13 126 7 161 6 - - 9.22 10.57 Standard Life Private Eq 132 3 131 6 136 6 247 4 453 4 3.20 -13.52 Symphony International Holding 120 7 70 21 54 18 90 15 105 15 6.87 -42.35 ROYALTIES Average/Total 114 22 113 22 111 21 174 20 283 19 3.40 -20.89 Hipgnosis Songs 97 1 114 1 ------4.51 0.32 PROPERTY - DEBT Average/Total 97 1 114 1 ------4.51 0.32 Alpha Real Trust 94 5 84 5 130 1 216 1 335 1 2.50 -21.40 TECHNOLOGY & MEDIA Drumz PLC 93 6 62 6 57 6 19 5 31 3 - 102.02 109 3 172 1 219 1 473 1 797 1 - -7.10 ICG-Lgbow Senior Sec. UK Prop Debt Inv 120 1 102 1 106 3 120 3 - - 6.76 -6.68 Augmentum Fintech 123 1 153 2 ------26.95 Real Estate Credit Investments 114 2 92 3 107 2 130 2 299 2 8.66 -7.24 Polar Capital Technology 100 4 147 3 186 2 389 2 602 2 - -6.70 Starwood European Real Estate Finance 107 3 96 2 100 4 113 4 - - 7.35 -13.85 Sure Ventures 116 2 105 4 ------14.92 TOC Property Backed Lending 100 4 84 4 95 5 - - - - 6.98 3.66 Average/Total 112 4 144 4 202 2 431 2 700 2 - 7.02 Average/Total 105 6 87 6 99 6 120 5 221 3 6.45 9.42 UK ALL COMPANIES PROPERTY - EUROPE Artemis Alpha Trust 133 3 136 2 131 3 197 1 144 9 1.34 -10.73 Aberdeen Standard Eurpn Logistics Inc 111 4 142 1 122 1 - - - - 4.30 12.01 Aurora 122 7 102 9 106 6 138 8 99 11 1.92 -9.18 Globalworth Real Estate Investments 131 2 79 6 89 4 183 2 - - 4.96 -19.70 Baillie Gifford UK Growth 124 6 125 3 140 1 169 4 218 8 1.40 0.60 Phoenix Spree Deutschland 106 6 112 3 96 3 214 1 - - 2.00 -27.92 136 2 109 5 103 8 146 6 326 3 2.23 1.16 Schroder Eurpn Real Estate Inv Tst 132 1 92 5 96 2 108 3 - - 5.79 -32.58 Henderson Opportunities 154 1 149 1 139 2 188 2 315 4 1.98 -2.47 Tritax EuroBox Euro 117 3 129 2 ------3.62 -4.82 Independent 118 9 103 8 74 11 143 7 276 6 1.54 -12.90 Yew Grove REIT 107 5 95 4 ------5.92 -8.27 Invesco Select UK Equity 116 11 104 7 104 7 122 10 261 7 4.02 -4.16 Average/Total 117 6 108 6 101 4 168 3 - - 4.43 -13.55 JPMorgan Mid Cap 122 8 95 10 101 9 135 9 331 2 2.63 -11.41 PROPERTY - REST OF WORLD Jupiter UK Growth 116 10 89 11 77 10 87 11 125 10 2.31 -9.94 Mercantile 125 5 104 6 125 4 177 3 294 5 2.58 -1.02 Aseana Properties 93 4 66 4 60 1 80 1 70 1 - -36.00 Schroder UK Mid Cap 132 4 114 4 124 5 161 5 349 1 2.15 -7.03 Ceiba Investments 130 1 120 1 ------18.77 Average/Total 127 11 112 11 111 11 151 11 249 11 2.19 -6.10 Dolphin Capital Investors 114 2 97 2 49 2 36 3 9 3 - -77.06

020-023 _WIsupp_0421.indd 22 18/03/2021 10:14 Investment trusts | 4 What Investment | April 2021 23

Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC Fund 6 months 1Year 3 Years 5Years 10 Years Yield DISC FUND 6 MONTHS£ 1 £YEAR 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% FUND 6 MONTHS£ 1 YEAR£ 3 YEARS£ 5 YEARS£ 10 YEARS£ YIELD% DISC% Val £Rnk Val £Rnk Val £Rnk Val £Rnk Val £Rnk % % Val£ Rnk Val £Rnk Val £Rnk Val £Rnk Val £Rnk % % UK EQUITY & BOND INCOME Baronsmead Venture Trust 115 13 112 7 109 23 128 19 225 17 19.16 -2.44 British Smaller Companies VCT 116 10 105 17 127 10 143 9 331 4 5.71 -4.89 Acorn Income Fund (Split) ZDP 2022 104 3 103 1 104 1 119 1 - - - -0.09 British Smaller Companies VCT2 117 9 110 8 127 9 141 11 204 21 6.89 -5.05 Acorn Income Fund 128 1 100 2 80 3 110 3 282 1 7.46 -16.77 Calculus VCT 100 34 126 2 90 34 - - - - 5.33 -5.20 Henderson High Income 115 2 100 3 102 2 117 2 201 2 6.23 -2.92 Crown Place VCT 105 28 102 24 133 6 155 6 234 14 5.48 -3.13 Average/Total 116 3 101 3 95 3 115 3 242 2 6.84 -6.59 Downing Four Generalist Shs 103 29 81 40 62 38 - - - - 4.20 -2.78 UK EQUITY INCOME Downing Four VCT DP67 100 34 65 43 72 37 85 33 96 28 - -4.89 Aberdeen Standard Equity Inc Trust 126 6 102 15 82 25 96 24 161 23 6.37 -8.37 Downing Four VCT DSO 1 D 77 45 77 41 126 11 106 29 - - 0.09 -20.56 BlackRock Income and Growth 105 24 100 19 96 20 117 21 163 22 4.09 -8.05 Downing ONE VCT 103 31 84 39 81 35 86 32 95 29 7.34 -5.13 BMO Capital & Income 115 16 95 23 101 14 140 9 185 17 3.89 -5.80 Downing Three VCT 'F' 90 42 84 38 109 25 79 34 - - 33.33 -23.73 BMO UK High Income B Share 114 18 106 10 105 11 134 12 208 9 5.92 -11.81 Downing Three VCT 'H' 85 43 61 44 33 40 36 37 - - 66.67 -12.28 BMO UK High Income 114 17 107 8 105 10 135 11 181 18 5.92 -11.36 Downing Three VCT 'J' 66 46 56 46 28 42 28 39 - - 57.14 -26.47 BMO UK High Income Units 111 22 103 12 99 18 132 13 220 4 6.02 -15.31 Downing Two VCT 'F' 90 41 74 42 73 36 62 35 - - - -22.22 British & American 121 11 78 26 59 26 47 25 88 24 10.19 -2.34 Downing Two VCT 'G' 80 44 59 45 45 39 45 36 - - 10.00 -43.34 Chelverton UK Dividend Trust 147 1 120 3 87 24 127 14 312 2 5.54 -8.53 Downing Two VCT 'K' 66 47 55 47 31 41 29 38 - - 10.42 -22.83 Chelverton UK Dividend Trust ZDP 2025 107 23 101 17 106 9 ------0.78 Draper Esprit VCT 121 7 92 35 94 33 103 30 195 22 6.65 -4.85 City of London 113 19 98 20 100 15 124 16 191 16 5.13 2.07 Foresight 4 VCT 109 17 92 37 105 28 139 12 83 30 7.62 -8.85 Diverse Income Trust 124 8 132 1 119 5 138 10 - - 3.41 -3.98 Foresight VCT 107 24 93 34 105 29 116 26 172 25 5.50 -12.79 Dunedin Income Growth 116 15 109 6 133 2 171 2 214 6 4.36 -3.64 Kings Arms Yard VCT 108 22 101 28 111 20 144 8 480 1 5.52 -5.10 Edinburgh Investment 122 10 111 5 100 16 101 23 192 15 4.17 -7.40 Maven Income & Growth VCT 3 108 18 104 19 104 30 116 27 316 6 7.69 -7.59 Finsbury Growth & Income 102 25 108 7 119 4 158 4 328 1 1.96 -0.31 Maven Income & Growth VCT 4 110 15 103 22 112 19 128 20 216 19 6.15 -7.58 Invesco Income Growth 118 13 100 18 111 8 125 15 203 11 4.42 -9.33 Maven Income & Growth VCT 5 115 12 110 9 124 12 133 16 318 5 3.24 -6.54 JPMorgan Claverhouse 122 9 101 16 102 12 145 8 208 8 4.50 -4.01 Maven Income & Growth VCT 105 26 101 26 110 22 116 25 253 11 9.76 -6.01 JPMorgan Elect Managed Inc 116 14 106 9 97 19 118 20 178 19 4.95 -6.61 Mobeus Income & Growth 2 VCT 121 8 109 10 139 4 158 4 434 2 31.14 -4.27 Corporation 132 3 132 1 136 1 189 1 290 3 3.85 1.61 Mobeus Income & Growth 4 VCT 124 3 117 4 145 3 161 3 246 12 15.29 -3.68 Lowland 129 5 103 13 90 23 122 18 203 10 4.93 -6.46 Mobeus Income & Growth VCT 125 2 118 3 149 2 170 2 309 7 24.81 -3.77 Merchants Trust 132 4 102 14 114 7 148 6 193 13 5.68 -0.44 Northern 2 VCT 123 5 106 14 118 15 138 14 261 9 5.74 -4.84 111 21 104 11 125 3 159 3 203 12 4.17 -3.85 Northern 3 VCT 123 4 106 16 118 16 138 13 262 8 4.40 -4.71 Schroder Income Growth 120 12 112 4 114 6 145 7 218 5 4.40 1.34 Northern Venture Trust 121 6 109 11 120 14 142 10 253 10 6.02 -8.78 Shires Income 112 20 97 22 100 16 151 5 210 7 5.47 -7.97 Octopus Apollo VCT 109 16 106 15 109 24 117 23 157 26 5.63 -6.17 Temple Bar 139 2 89 25 90 22 123 17 167 21 3.47 -1.46 Octopus Titan VCT 108 19 102 25 106 26 117 24 226 16 6.06 -7.41 Troy Income & Growth 98 26 93 24 102 13 113 22 192 14 2.80 -1.51 Pembroke VCT B 105 27 104 21 123 13 128 21 - - 3.86 -5.22 Value and Indexed Property Income 124 7 97 21 96 21 122 19 171 20 5.60 -16.56 ProVen Growth and Income VCT 108 21 98 31 101 31 113 28 156 27 6.02 -5.59 Average/Total 119 26 104 26 103 26 131 25 203 24 4.85 -5.42 ProVen VCT 108 20 100 29 113 17 127 22 188 23 6.02 -6.99 UK SMALLER COMPANIES Puma VCT 11 100 34 100 30 95 32 95 31 - - 7.14 0.20 Aberdeen Smaller Companies Inc 119 19 101 22 116 12 187 8 326 10 2.68 -15.34 Puma VCT 12 103 30 114 5 106 27 - - - - 3.41 8.63 Aberforth Smaller Companies 159 2 114 15 115 13 157 15 268 12 2.36 -5.57 Puma VCT 13 100 34 92 36 ------23.83 Aberforth Split Level Income 147 3 97 23 85 20 - - - - 6.37 -16.82 The Income & Growth VCT 142 1 133 1 158 1 174 1 377 3 7.89 -4.00 Aberforth Split Level Income ZDP 2024 103 23 101 21 103 17 ------1.93 Triple Point Income VCT C 100 34 109 12 ------4.67 -9.92 Athelney Trust 109 22 109 18 87 18 108 17 214 13 4.82 -24.05 Triple Point Income VCT D 102 33 107 13 ------9.35 -9.49 BlackRock Smaller Companies 139 10 117 12 137 8 218 4 377 7 1.87 -3.53 Triple Point VCT 2011 A 102 32 104 18 ------125.76 -5.05 BlackRock Throgmorton Trust plc 125 15 132 5 167 3 267 1 472 2 1.33 1.45 Triple Point VCT 2011 B 99 40 101 27 ------5.43 -5.00 Chelverton Growth Trust 113 20 92 25 54 24 69 19 148 15 - -37.36 Average/Total 106 47 98 47 106 42 118 39 239 30 13.43 -8.33 Crystal Amber 119 18 106 19 58 23 80 18 143 16 4.74 -15.19 VCT GENERALIST PRE-QUALIFYING Downing Strategic Micro-Cap Inv. Trust 141 8 118 10 81 21 - - - - 2.24 -11.83 Puma Alpha VCT ord 100 2 ------4.17 Gresham House Strategic plc 130 13 112 16 167 4 173 13 - - 2.06 -12.03 Seneca Growth Capital VCT B 105 1 101 3 ------3.21 1.85 Henderson Smaller Companies 141 9 125 7 137 7 204 7 441 4 2.18 -3.26 Triple Point 2011 Venture Shares 100 2 103 2 ------2.53 Invesco Perpetual UK Smaller 137 11 106 20 119 11 177 12 378 6 3.58 -9.94 Triple Point Income VCT E 99 4 109 1 ------7.56 -9.76 JPMorgan Smaller Companies 142 7 134 4 171 2 241 2 422 5 1.57 -1.42 Average/Total 101 4 104 3 ------5.38 -2.39 Marwyn Value Investors 102 24 122 9 87 19 66 20 131 17 - -33.50 Marwyn Value Investors Realisation 96 25 96 24 79 22 ------14.50 VCT SPECIALIST: ENVIRONMENTAL Miton UK Microcap 173 1 214 1 144 6 178 11 - - 0.10 -1.58 Foresight Solar & Technology VCT plc 99 8 80 9 86 9 92 9 111 7 8.76 -2.42 Montanaro UK Smaller Companies 122 16 125 7 145 5 186 9 273 11 3.95 -4.11 Gresham House Renewable Energy VCT 1 100 3 98 5 100 8 111 7 162 5 5.57 -4.33 Odyssean Investment Trust 131 12 126 6 ------4.76 Gresham House Renewable Energy VCT 2 100 3 97 6 105 7 110 8 162 6 5.63 -4.18 Oryx International Growth 146 5 176 2 195 1 241 3 615 1 - -3.93 Ventus VCT 2 C 100 5 99 3 121 2 170 1 206 4 6.78 9.59 Rights & Issues Investment Trust 120 17 116 13 109 16 215 5 452 3 1.42 -5.05 Ventus VCT 2 D 102 1 102 1 115 6 139 6 - - 3.91 5.79 River and Mercantile UK Micro Cap 146 4 154 3 135 9 204 6 - - - -12.58 Ventus VCT 2 96 9 96 7 124 1 140 4 213 3 6.37 4.11 Standard Life UK Smaller Co. 112 21 114 14 125 10 181 10 327 9 1.32 -6.12 Ventus VCT C 99 6 99 3 121 2 169 2 217 2 5.88 11.20 Strategic Equity Capital 130 14 112 17 110 15 133 16 328 8 0.49 -18.17 Ventus VCT D 102 1 102 1 115 5 139 5 - - 3.38 7.09 SVM UK Emerging 144 6 118 11 112 14 160 14 200 14 - -17.55 Ventus VCT 99 7 94 8 118 4 156 3 258 1 7.11 6.51 Worsley Investors Limited 96 26 84 26 44 25 47 21 48 18 - -39.83 Average/Total 100 9 97 9 112 9 136 9 190 7 5.93 3.71 Average/Total 129 26 120 26 115 25 166 21 309 18 2.53 -12.25 VCT SPECIALIST: HEALTHCARE & BIOTECHNOLOGY VCT AIM QUOTED Downing Four Healthcare Shs 98 2 82 2 65 2 - - - - 3.97 -3.37 Amati AIM VCT 127 6 156 1 147 2 249 1 366 1 4.18 -8.97 Seneca Growth Capital VCT 201 1 252 1 249 1 242 1 242 1 23.88 10.93 Hargreave Hale AIM VCT 139 2 149 2 144 3 182 3 330 2 4.08 -4.85 Average/Total 150 2 167 2 157 2 242 1 242 1 13.92 3.78 New Century AIM 2 VCT 137 4 117 6 102 7 106 7 126 7 7.82 -29.93 VCT SPECIALIST: MEDIA, LEISURE & EVENTS New Century AIM VCT 138 3 110 7 108 6 124 6 159 6 1.91 -25.22 Edge Performance VCT 'H' 269 1 308 1 323 1 179 1 - - 3.56 -7.25 Octopus AIM VCT 2 127 5 137 4 140 4 174 4 249 5 4.75 -5.85 Edge Performance VCT 'I' 45 2 67 2 33 2 18 2 - - - -26.47 Octopus AIM VCT 126 7 136 5 133 5 168 5 260 4 7.59 -4.97 Average/Total 157 2 187 2 178 2 98 2 - - 3.56 -16.86 Unicorn AIM VCT 143 1 145 3 164 1 195 2 329 3 3.28 -13.48 Average/Total 134 7 136 7 134 7 171 7 260 7 4.80 -13.32 VCT SPECIALIST: TECHNOLOGY VCT GENERALIST BlackFinch Spring VCT 88 5 ------5.17 Oxford Technology VCT 2 100 1 89 1 77 2 144 1 138 2 7.50 -17.70 Albion Development VCT 106 25 104 20 135 5 155 5 242 13 5.33 1.66 Oxford Technology VCT 3 100 1 64 4 67 4 76 2 122 3 - -29.58 Albion Enterprise VCT 112 14 102 23 131 7 152 7 231 15 5.11 -3.96 Oxford Technology VCT 4 100 1 87 2 72 3 54 4 96 4 27.78 -37.50 Albion Technology & Gen VCT 107 23 98 32 128 8 132 17 187 24 3.03 -4.68 Oxford Technology VCT 98 4 83 3 79 1 72 3 146 1 - -24.03 Albion VCT 100 39 95 33 113 18 136 15 208 20 6.19 -4.44 Average/Total 97 5 81 4 74 4 87 4 126 4 17.64 -22.80 Baronsmead Second Venture Trust 116 11 112 6 111 21 128 18 218 18 8.61 -6.15

020-023 _WIsupp_0421.indd 23 18/03/2021 10:14 KEYSTONE POSITIVE CHANGE INVESTMENT TRUST

A change of name. A change of strategy. It’s all positive.

Baillie Gifford has been appointed by the board of Keystone Investment Trust as the company’s new investment manager. The newly named Keystone Positive Change Investment Trust sees the team behind the award-winning Positive Change Fund take the Trust in a new exciting direction. The result is a Trust that can invest in both public and private companies that it believes can deliver on the strategy’s dual objectives: to make a positive impact on the planet; and on investors’ returns.

Please remember that changing stock market conditions and currency exchange rates will affect the value of the investment in the fund and any income from it. Investors may not get back the amount invested.

Find out more at keystonepositivechange.com A Key Information Document is available. Call 0800 917 2112.

Actual Investors

Your call may be recorded for training or monitoring purposes. Issued and approved by Baillie Gifford & Co Limited, whose registered address is at Calton Square, 1 Greenside Row, Edinburgh, EH1 3AN, United Kingdom. Baillie Gifford & Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Trust. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority.

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