STOCKS | FUNDS | INVESTMENT TRUSTS | PENSIONS AND SAVINGS VOL 19 / ISSUE 39 / 05 OCTOBER 2017 / £4.49 SHARES WE MAKE INVESTING EASIER OUR TOP STOCK PICKS FOR 2017 10.7% AVERAGE GAIN SO FAR WILL EASYJET BENEFIT FROM RYANAIR AND MONARCH WOES? THE SIMPLE WAY TO EXIT AN INVESTMENT IF SOMETHING GOES WRONG HOW TO INVEST IN THE ELECTRIC VEHICLE REVOLUT ON The engineers, chemical firms and miners plugged into this fast growing industry EDITOR’S VIEW Happy birthday to the new-look Shares We’ve been a digital-only publication for a year but helping investors since 1999 t’s time to wish happy birthday to people putting money in the investment Shares as an online-only publication. version of the tax-efficient wrapper I It’s been a year since we stopped in the tax year ending 5 April 2017. In printing the magazine and switched to comparison, the number of stocks and the digital world. shares ISA accounts with monetary I’m happy to say it has been a inflows was lower in the previous year very successful 12 months as reader at 2.539m. numbers have gone up and we’ve been Interestingly, there was the reverse able to help even more people improve of this trend with cash ISAs where the their investing skills. number of accounts with new monetary I hope you enjoy the digital subscriptions fell from 10.118m in publication and that it continues to help 2015/16 to 8.48m a year later. you understand the world of investing; demystifies What this tells me is that more people are the stock market; and provides a continuous being drawn to the stock market in search of a stream of investing ideas. higher return on their money as the rates on cash accounts continue to be so poor. ONGOING IMPROVEMENTS The flip side is that an increase in people using Over the past year we’ve increased our coverage of stocks and shares ISAs could increase the risk that the funds and investment trust market; sharpened people put money into unsuitable investments as our focus on longer-term investing; and boosted many will be picking stocks or funds at random. the daily commentary we provide on a range of subjects via the Shares website. OUR ROLE AS EDUCATION PROVIDER Many of you have already told us which We recognise at Shares that many people using parts of the digital magazine and website you stocks and shares ISAs aren’t experts when it like best, as well as the areas in which we could comes to investing. That’s why we place such a do better, as per two reader surveys over the strong emphasis on education in the digital past few months. magazine, helping both the inexperienced If you didn’t participate in a reader survey, and the more seasoned investor. I’d still like to hear your thoughts on how we Our purpose is to provide guidance with can make Shares an even better read. Email choosing investments as well as managing [email protected] with the a portfolio; but note that we do not provide subject line ‘Reader feedback’ and let me know investment advice. which parts of the magazine and website you If you’re hungry for help with investing, why really like and areas you’d like us to cover not head to our website and look at our in more detail, or perhaps add if we don’t rich archive of investment-related articles already cover them. where we have issues of the weekly magazine going back to 2004. INVESTING IS GROWING I would like to say thank you for IN POPULARITY continuing to read Shares and here’s Recent figures from the taxman, the to the next 12 months and beyond HMRC, show that stocks and shares ISAs as your trusted source of investing are growing in popularity with 2.589m information. (DC) 2 | SHARES | 05 October 2017 Invesco Perpetual Investment Trusts Built on our legacy of long-term expertise Investing for the future? You can be confident in the patient, high conviction approach we take with all our funds, including investment trusts. Whether relatively new or over 125 years old, each one is managed with attractive, long-term returns in mind. Creating a range that’s expertly crafted to stand the test of time. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Find out more at: invescoperpetual.co.uk/investmenttrusts For more information on our products, please refer to the relevant Alternative Investment Fund Managers Directive document (AIFMD) and the latest Annual or Half-Yearly Financial Reports. This information is available using the contact details shown. Invesco Perpetual is a business name of Invesco Fund Managers Limited. 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SH IT 1a Shares Magazine_Investment Trust Sculpture Mountain_ 21.09.17.indd 1 19/09/2017 13:55 Contents INTERACTIVE PAGES CLICK ON PAGE NUMBERS TO JUMP 05 OCTOBER 2017 TO THE RELEVANT STORY EDITOR’S VIEW 02 Happy birthday to 8 the new-look Shares BIG NEWS 06 EasyJet could benefit from Ryanair and Monarch problems BIG NEWS 07 Boost for housebuilders and real estate firms BIG NEWS 08 Land of the GREAT IDEAS rising dividends 11 Allergy Therapeutics 2 is really exciting BIG NEWS 08 Our top picks of the GREAT IDEAS UPDATE year continue to 12 We update our views outperform on XP Power and Imperial Brands STORY IN NUMBERS 09 Shares in AIM UNDER THE BONNET superstar CVS are 14 Newly-listed retailer up nearly 16-fold targets five-fold since 2010 increase in sales GREAT IDEAS FEATURE 10 Fill up on Greencore 16 How to use stop while the market is losses to protect feasting elsewhere your portfolio 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 | 05 October 2017 Contents MAIN FEATURE MONEY MATTERS LARGER COMPANIES 20 How to invest in 32 How to switch to a 36 The power of the electric vehicle stocks and shares ISA Ted Baker’s brand revolution MONEY MATTERS SMALLER COMPANIES MR MARKET 34 How much are YOU 37 Shares in Trinity 28 Are the rules for saving for retirement? could ‘triple in value’ UK listed company says broker takeovers about to get tougher? SMALLER COMPANIES 20 38 S&U has smart INVESTMENT TRUSTS approach to 30 Don’t allow fees motor finance to become foes WEEK AHEAD 40 Financial results and ex-dividends over the coming week INDEX 41 Index of companies and funds in this issue 36 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: CONTRIBUTORS 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 @SharesMagJames that rating. PRODUCTION ADVERTISING MANAGING DIRECTOR Eg: 4 2 1 means four brokers have buy ratings, Head of Design Sales Executive Mike Boydell Rebecca Bodi Nick Frankland two brokers have hold ratings and one broker has a sell 020 7378 4592 rating. Designer [email protected] Darren Rapley 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, but isn’t always a fully comprehensive list of ratings as some 49 Southwark Bridge Road, London, SE1 9HH.