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STOCKS | FUNDS | INVESTMENT TRUSTS | PENSIONS AND SAVINGS VOL 19 / ISSUE 13 / 06 APRIL 2017 / £4.49 SHARES WE MAKE INVESTING EASIER WHY NOW IS THE PERFECT TIME TO INVEST IN SAGA FTSE 100 DISCOVER DIVIDEND THE FUND WITH SWEET A REFRESHING SPOTS ATTITUDE USE AIM STOCKS TO AVOID 40% INHERITANCE TAX Adventurous Moderately adventurous Appetite for risk varies. Appetite for charges doesn’t. AJ Bell Passive funds range in risk from ‘Cautious’ to ‘Adventurous’, but with a 0.5% capped annual charge, the risk of unexpected costs is always zero. Also, until January 2019 we will waive our custody charge for these funds. Balanced youinvest.co.uk Full details of the capped annual charge are outlined in the Key Investor Information Document for each fund. The value of investments can go down as well as up and you may get back less Moderately cautious than you originally invested. Cautious AJ Bell includes AJ Bell Holdings Limited and its wholly owned subsidiaries. AJ Bell Management Limited and AJ Bell Securities Limited are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at Traff ord House, Chester Road, Manchester M32 0RS EDITOR’S VIEW Don’t lose sight of what stocks can deliver Dividend reinvestment unlocks the wealth generating potential of equities he old Chinese curse ‘may you those offered by cash on deposit. live in interesting times’ has T rarely felt more apt than it does SPIRIT OF ADVENTURE in 2017. Amid all the noise about Trump, In our main feature this week we Brexit, European elections and the rest make the case for including some high it can be useful to take a step back and conviction stocks in your portfolio. appreciate just what the humble share It is not sensible to invest in individual can deliver in the long-term. shares with money you cannot afford AJ Bell’s latest edition of its quarterly to lose and nor should you take Dividend Dashboard spells out the kind unnecessary risks. However, there of returns you can achieve through is a case to be made for retaining at reinvesting the dividends from shares. least some spirit of adventure in your The report assumes the FTSE All-Share continues investing. to generate the compound annual growth rate After all, the stock market’s origins lay in backing since inception in the early 1960s of 6.8% a year the ventures of 16th and 17th century merchants and pays the same annual dividend of 3.8%. targeting distant and exotic markets. On this basis if you had invested last year’s ISA Being part-owners of the latest names looking allowance of £15,240, and subtracted 1% a year to the public markets to back their plans for for platform administration and dealing fees, you growth and wealth generation can be exciting would be sitting on £231,577 after 30 years with and fun as well as potentially boosting the returns dividends reinvested. This level of return dwarves from your hard-earned cash. (TS) WHO WE ARE BROKER RATINGS EXPLAINED: EDITOR: DEPUTY NEWS Daniel EDITOR: EDITOR: We use traffic light symbols in the magazine to illustrate Coatsworth Tom Sieber Steven Frazer broker views on stocks. @SharesMagDan @SharesMagTom @SharesMagSteve FUNDS AND REPORTER: JUNIOR REPORTER: CONTRIBUTERS Green means buy, Orange means hold, Red means sell. INVESTMENT TRUSTS David Stevenson Lisa-Marie Janes Emily Perryman EDITOR: @SharesMagDavid @SharesMagLisaMJ Tom Selby James Crux The numbers refer to how many different brokers have that @SharesMagJames rating. PRODUCTION ADVERTISING MANAGING DIRECTOR Eg: 4 2 1 means four brokers have buy ratings, Head of Production Sales Executive Mike Boydell Michael Duncan Nick Frankland two brokers have hold ratings and one broker has a sell 020 7378 4592 rating. Designer [email protected] Rebecca Bodi The traffic light system gives an illustration of market views Shares magazine is published weekly every Thursday (50 times per year) by AJ Bell Media Limited, 49 Southwark Bridge Road, London, SE1 9HH. Company Registration No: 3733852. but isn’t always a fully comprehensive list of ratings as some All Shares material is copyright. Repro duction in whole or part is not permitted without written banks/stockbrokers don’t publicly release this information. permission from the editor. 06 April 2017 | SHARES | 3 INTERACTIVE Contents PAGES CLICK ON PAGE NUMBERS TO JUMP 06 April 2017 TO THE RELEVANT STORY 03 Don’t lose sight of 12 GCP Student Living’s what stocks can capital comforts deliver 14 SciSys ignites growth 26 ISAs: Where to put 06 FTSE 100 dividend flame your £20,000 delight on overseas earnings boost 16 We update our views 34 Profit from private on Luceco and Iomart equity 07 Polar Capital makes a mint after Miton raid 18 The hazards of client 36 This fund has a concentration refreshing attitude to 07 Brace yourself for making money more British 20 Why now is the perfect takeovers time to buy Saga 38 Results, trading shares updates, AGMs and more over the coming 22 SSE dividend ‘safe week for now’ 08 CityFibre seeks fresh funding deal 39 How Lifetime ISA 09 Genus gets green light can work WITH to launch GSS 24 Important turning automatic enrolment point for Be Heard 10 AO World’s catastrophic earnings 25 Bleak future for 40 Use AIM stocks to downgrade and other Pebble Beach avoid 40% inheritance stories in numbers tax securities, derivatives or positions with spread betting organisations that they have an interest in should first clear their writing with the editor. If the editor DISCLAIMER agrees that the reporter can write about the interest, it should be disclosed to readers at the end of the story. Holdings by third parties including families, trusts, IMPORTANT self-select pension funds, self select ISAs and PEPs and nominee accounts are included in such interests. Shares publishes information and ideas which are of interest to investors. It does not provide advice in relation to investments or any other financial matters. 2. Reporters will inform the editor on any occasion that they transact shares, Comments published in Shares must not be relied upon by readers when they derivatives or spread betting positions. This will overcome situations when the make their investment decisions. Investors who require advice should consult a interests they are considering might conflict with reports by other writers in the properly qualified independent adviser. Shares, its staff and AJ Bell Media Limited magazine. This notification should be confirmed by e-mail. do not, under any circumstances, accept liability for losses suffered by readers as a result of their investment decisions. 3. Reporters are required to hold a full personal interest register. The whereabouts of this register should be revealed to the editor. Members of staff of Shares may hold shares in companies mentioned in the magazine. This could create a conflict of interests. Where such a conflict exists it 4. A reporter should not have made a transaction of shares, derivatives or spread will be disclosed. Shares adheres to a strict code of conduct for reporters, as betting positions for seven working days before the publication of an article that set out below. mentions such interest. Reporters who have an interest in a company they have written about should not transact the shares within seven working days after the 1. In keeping with the existing practice, reporters who intend to write about any on-sale date of the magazine. 4 | SHARES | 06 April 2017 ADVERTORIAL ALIGNED WITH OUR INVESTORS Seeking the best equity opportunities, globally AT SARACEN FUND MANAGERS, WE ALIGN OUR INTERESTS WITH THOSE OF INVESTORS – WE ARE 100% EMPLOYEE OWNED AND HAVE SIGNIFICANT PORTIONS OF OUR PERSONAL ASSETS INVESTED INTO OUR FUNDS. he TB Saracen Global Income and Growth Fund, Currently ranked second out of 41 funds over 12 months co-managed by Graham Campbell and David Keir, aims to the 31st March 2017, the fund has delivered top quartile to grow both capital and income over the long-term by performance over 1 year, 5 years and since launch in June 2011. Tinvesting in market leading businesses at attractive valuations and supportive dividend yields. Cumulative Performance after all ongoing charges to 31st March 2017 The most important part of any investment decision is the 1 year 3 years 5 years Since price you pay. We aim to identify and invest in 40-60 leading 1 global businesses which we believe will be able to grow profits launch and increase dividends over the next 10 – 20 years. TB Saracen Global Income +37.3% +42.4% +93.7% +100.1% The fund is independently rated by RSM and “A” rated by and Growth Fund B Acc Square Mile Research. TB Saracen Global Income and Growth IA Global Equity Income +25.4% +38.7% +75.8% +79.0% Fund has an active share of 90%. Sector Average Fund Performance since inception (from 06/11 – 03/17) Quartile Ranking 1 3 1 1 1Source: Financial Express; launch date 07 June 2011 The historic dividend yield is 2.6%2, which rose 8% year on year3. There is an annual management fee of 0.75% and an ongoing charges figure of 0.97% (B shares) and there is no entry or exit fee and no performance fees. We offer Income and Accumulation shares. Saracen Fund Managers has a rigorous investment process. We have a long-term investment horizon and we focus on factors that drive returns, namely; cash and growth. Many investors require income and capital to fund their aspirations. Banks and government bonds offer very low levels of return for savers. In comparison, equities still appear attractive and with signs that economic growth is strengthening, we believe we have identified a portfolio of quality businesses Source: Financial Express that offer value and will benefit from the persistence of global Total Return, Bid to Bid, GBP terms.