Our investment trusts independence expertise choice Information advantage The information advantage RCM and its predecessors have been managing investment trusts since 1889, providing investors with access to investment markets around the world. RCM is an award-winning global asset manager and equities specialist. A company of Allianz Global Investors, our oﬃces are strategically located in the US, Europe and Asia. At RCM, we believe the better the investment research, the better the investment decision, which is why research plays a crucial role Why 250,000 interviews make us across the range of trusts that we manage. We apply our right for the job GrassrootsSM Research is one of the resources, including a 60-strong fundamental research team investment industry’s most innovative research and our proprietary GrassrootsSM Research, to seek out attractive facilities and is unique to RCM. GrassrootsSM investment opportunities around the world. combines in-house experts with a global network of more than 250 independent Our investment trusts hold a variety of UK, European and global investigators and over 50,000 industry equities, and also include more specialist investments such as contacts. Since 1984, GrassrootsSM has endowment policy trusts. Each trust has a speciﬁc aim – either conducted over 250,000 interviews with to provide income, growth or a combination of both – which businesses and consumers on hundreds of determines the type of assets in which it invests. Our goal is to wide-ranging subjects, helping us to identify oﬀer investors a broad choice, so that they can tailor their market trends before our competitors. investment to their own speciﬁc objectives and needs. Strength and experience Allianz Global Investors is one of the largest active asset managers in the world, with €920 billion of assets under management and investment centres in 25 locations around the world. With 4,600 staﬀ, including 950 investment professionals, Allianz Global Investors brings together a distinctive network of specialist investment ﬁrms, each with their own dedicated area of expertise. Our investment trust range A broad choice of trusts to suit your investment requirements… THE MERCHANTS TRUST PLC Income to appreciate. Investing in large UK companies, the Merchants Trust PLC aims to provide an above average level of income which increases over time. It was incorporated in 1889 and has assets in excess of £400m (as at 30 April 2009), making it the oldest and largest investment trust in our range. The trust is managed by Simon Gergel, a Director at RCM with 22 years’ investment experience. THE BRUNNER INVESTMENT TRUST PLC Global potential. Jointly managed by Lucy Macdonald and Mark Lovett, the Brunner Investment Trust PLC provides investors with a global equity portfolio. Approximately half of the portfolio is invested in large UK companies, with the remainder spread throughout the world’s markets, creating a well-diversiﬁed portfolio. BRITISH PORTFOLIO TRUST PLC A balanced portfolio. The British Portfolio Trust aims to provide growth in capital and income over the long term through investment in a diversiﬁed portfolio of UK equities. The broad range of sectors within the UK equity market helps achieve a balanced portfolio of stocks. As over half of the companies listed on the London stock exchange also derive proﬁts from overseas, manager Jeremy Thomas takes full advantage of RCM’s global research capabilities. CHARTER EUROPEAN TRUST PLC An award-winning investment. The award-winning Charter European Trust aims to deliver capital and income growth for investors looking for exposure to continental Europe. Managed by Mark Lovett, Co-CIO European Equities, the trust favours larger European “growth” companies and has beneﬁted from a highly-focused investment style adopted in 2004. RCM TECHNOLOGY TRUST PLC A specialist’s pursuit. The Technology Trust is managed by Walter Price, Managing Director and senior analyst of one of the leading technology fund management teams in the United States. Based in San Francisco, the team’s specialist research resources enhance its expertise in both technology and technology companies. Walter Price has been analysing technology stocks for more than 35 years. ENDOWMENT POLICY TRUSTS These trusts invest in mid-term endowment policies to provide capital growth over their planned life: Allianz Dresdner Second Endowment Policy Trust 2009 PLC Allianz Dresdner Endowment Policy Trust 2010 PLC Some of the trusts seeks to enhance returns for its shareholders through gearing. Gearing can boost a trust’s returns when investments perform well, though losses can be magniﬁed when investments lose value. You should be aware that these trusts may be subject to sudden and large falls in value and you could suﬀer substantial capital loss. For more details, please visit www.rcm.com/investmenttrusts. Past performance is not a reliable indicator of future performance. You should not make any assumptions on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market ﬂuctuations and you may not get back the amount originally invested. The benefits of investment trusts Investment trusts are collective investments that pool money together to invest in stock markets. Unlike other forms of collective investment, they are listed on the London Stock Exchange and can be traded throughout any dealing day. Here are several other key beneﬁts: 1 Investments designed to last… As one of the oldest existing forms of collective 4 Income reserves Investment trusts have the ability to keep reserves of investment, investment trusts have proved their income, so even if dividends are cut by the companies longevity and ﬂexibility. Indeed, they have been that the trust invests in, some trusts have the potential providing private investors with a cost eﬀective route to to continue to sustain their own dividends by using their the potential beneﬁts of the stock market for more than income reserves. 130 years. Investment trusts are companies listed on 5 the London Stock Exchange that invest in the shares of Gearing other companies. Like other companies listed on the Stock Exchange, their share price is determined by Investment trusts can also beneﬁt from gearing – supply and demand, and can also trade above (at a the ability to borrow money with the aim of enhancing premium to) or below (at a discount to) the underlying returns. The level of gearing is carefully managed by the value of the investments held by the trust. This trust’s Board of Directors and is determined by, amongst ‘underlying value’ is known as the net asset value. other factors, stock market views. Gearing can boost a trust’s returns when investments perform well, though 2 losses can be magniﬁed when investments lose value. Long-term track record 6 Whilst past performance is no guide to future Easy to purchase performance, and capital returns can, and recently have been, volatile, open-ended funds investing for global You can easily purchase shares in our investment trusts growth have returned 15.5% over ﬁve years and -0.3% through a stockbroker, and these can be held in an ISA over ten years, whereas global growth investment trusts and/or savings scheme. have returned 37.1% and 28.2% over the respective periods. Similarly, open-ended funds in the UK All Companies Sector have returned 8.3% and -1% over the same periods, whereas UK growth investment trusts TO FIND OUT MORE have returned 15.7% and 43.7% respectively. You can ﬁnd more information about RCM-managed (Sources: Lipper in GBP, as at 30.4.09, AIC vs IMA investment trusts on our website, including fact sheets, video interviews with our fund managers, daily prices, sectors). NAVs, performance charts and Annual Financial Reports. 3 Independence www.rcm.com/investmenttrusts Each investment trust beneﬁts from the expertise and British Portfolio Trust plc resources of a professional fund manager such as RCM, The Brunner Investment Trust PLC Aim 31 March 2009 Key Information 31 March 2009 The Trust’s objective is to provide shareholders with growth in capital and income Total Assets: £38.8m over the long term through investment in a diversified portfolio of UK equities. The Trust invests mainly in the shares of FTSE 100 companies, although its portfolio also Gearing (net): 10.5% Key Information Trust PLC includes some medium-sized and smaller UK companies. No. of Shares (Ordinary 1p): 36,747,220 Aim index of 50% £205.3m its total return above the benchmark The Merchants Total Assets: The Trust’s objective is to increase adjusted) over the long 15.1% Share Price1: 88.0p yet, as a company listed on the London Stock All-World Index (ex UK sterling Gearing (net): FTSE All-Share and 50% FTSE The strategy of the Trust is Risks & Features Net Asset Value3: 93.7p UK and international securities. term, by investing inMarch 2009 No. of Shares (Ordinary 1p): 46,710,015 investment in a Investment trusts are quoted companies listed on the London Stock Exchange. Their 31 of those seeking a single 292.5p Premium/-Discount to NAV3: -6.1% designed to meet the requirements Share Price : 1 share prices are determined by factors including demand, or lack of, which means managed portfolio. 334.9p (316.1p – debt at market value) Dividend Yield2: 5.80% diversified and professionally that the shares may trade below (at a discount to) or above (at a premium to) the Net Asset Value : 3 value) No. of Holdings: 50 underlying net asset value. market -12.7% (-7.5% – debt at 3 : Premium/-Discount to NAV n All data source RCM (UK) Limited as as 31.03.09 unless otherwise stated. Key Informatio Risks & Features on the London Stock Exchange. Their Dividend Yield : 2 4.00% The Trust seeks to enhance returns for its shareholders through gearing, in the form £363.7m trusts are quoted companies listed Investment bank of 136 borrowings. Gearing can boost the Trust’s returns when investments perform or lack of, which means Launch Date: December 2001 income growth Total Assets: by factors including demand, No. of Holdings: level of income, 40.3%prices are determined share (at a premium to) the well, though losses can be magnified when investments lose value. as as 31.03.09 unless otherwise stated. Aim above average in higher (at a discount to) or above All data source RCM (UK) Limited Continuation Vote: 2013 is to provide an of investing mainly Gearing (net): that the shares may trade below The Trust’s objective through a policy (Ordinary 1p): 102,813,464 growth of capital underlying net asset value. AIC Sector: UK Growth and long-term No. of Shares 235.3p gearing, in the form Launch Date: History 1927 January 100 companies. returns for its shareholders through value) Benchmark: FTSE All-Share Index Share Price : The Trust seeks to enhancemarket – debt at 1 yielding UK FTSE 255.3p (242.2p the Trust’s returns when TheGlobal Growth Trust in December 2001 followed offers to holders of Loan Notes launch of the debentures. Gearing can boost of long-term, fixed rate market value) AIC Sector: : investments lose Year end: 31 October Exchange, it is independent and is overseen by its own 3 Net Asset Value – debt at losses can be magnified when 50% FTSE All-Share Index issued by Lafarge Minerals Ltd (former shareholders of Blue Circle Industries PLC) Their -7.9% (-2.9% investments perform well, though Benchmark: : Shopgoal Ltd (former UK Index 3 Stock Exchange. count to NAV to sudden and large falls and50% FTSE All-World ex shareholders of Fairbar Ltd, which was de-merged from Reports & Accounts: Final posted in January, Risks & Features companies listed on the London lack of, which means that this Trust may be subject Premium/-Dis value. You should be aware 9.39% Whitbread plc), effectively to exchange their Loan Notes for Ordinary shares. In Interim posted in July quoted are or 2 : capital loss. 30 November Investment trusts factors including demand, a premium to) the Dividend Yield value and you could suffer substantial inFinal: 5.6p (payable 15.05.09) Year end: determined by to) or above (at (payable 20.02.09) addition, Ordinary shares were available through a Placing and Offer for Subscription Final posted in February, AGM: February share prices are (at a discount Net Dividend per Share: 3rd interim: 5.6p Reports & Accounts: Trust by Cazenove. The in Julyhas issued new shares on subsequent occasions at the may trade below (paid 13.11.08) Interim posted that the shares 2nd interim 5.6p Dividends: March, September asset value. in the form History 5.5p (paid 19.08.08) planned wind-up dates of other quoted investment trusts and also in exchange for underlying net through gearing, 1st interim: sale of Brunner, Mond for its shareholders when Brunner family’s interest in the loan Marchissued in cash takeovers. rates Price Information: Financial Times, The Daily Telegraph, to enhance returns the Trust’s returns The Trust was formed from the ICI in 1926. The Trust AGM: Gearing can boost www.rcm.com/investmenttrusts Merchants seeks lose 44 companies which came to form March, August fixed rate debentures. when investments & Co, the largest of the four stated. Investors formerly Dividends: of long-term, can be magnified falls No. of Holdings: unless otherwise (a subsidiary of Allianz Global Financial Times, The Daily Telegraph, Board of Directors: Andrew Barker (Chairman), well, though losses sudden and large has been managed by RCM as as 31.03.09 investments perform be subject to RCM (UK) Limited Price Information: Fund Manager’s Review George Luckraft, Nicholas Gold, this Trust may All data source Kleinwort Benson) since inception. www.rcm.com/investmenttrusts be aware that The FTSE All Share index recovered modestly during March, value. You should capital loss. 16 February 1889 Adam Wethered, Simon White could suffer substantial Keith Percy (Chairman), providing investors some small relief after a poor rising 2.8%, in value and you Launch Date: Board of Directors: Vivian Bazalgette, Ben Siddons, the end of the first quarter the UK equity Investment Manager: Jeremy Thomas, Director, UK Equity UK Income Growth Fund Managers’ Review After the dismal start to the year, world start to 2009. At AIC Sector: William Worsley, Richard Wakeling RCM FTSE 100 Index Board of Directors. The fund manager is accountable to of the investment market was down 9.1% for the year to date, a truly A company of Allianz Global Investors making it the oldest in March as Mark Lovett, CIO, UK & European Equity History February 1889, securities Benchmark: 31 January equity markets rallied strongly disappointing outcome after the near 30% fall in 2008. The incorporated in in the fixed interest showed Investment Manager: Global Equity Investor Services: 020 7065 1407 The Trust was some macroeconomic indicators Lucy MacDonald, CIO,Portfolio Trust NAV rose 5.5% over the month, it principally invested with the remainder Year end: Final posted in April, British stable. Initially and South America, and trusts in the RCM Brewery in in September tentative signs of stabilisation RCM benefitting from favourable stock selection and from the in the USA, Canada Reports & Accounts: Interim posted Investors 1 as Castlemaine announced A company ofmodest Global gearing employed. A more positive period of Allianz Source: Lipper as at 31.03.09, market close mid price. of railway companies companies such governments around the world level of securities and major UK companies their 2 Source: Datastream as at 31.03.09. Calculated using the latest full year dividend held in Government primarily upon May new measures aimed at kick-starting 020 7065 1407 stock selection was driven by a recovery in some of the stocks that contributed to The Trust now concentrates August, November rates at Investor Services: divided by the current share price. Western Australia. dividend yield. AGM: February, May, economies. With their base interest weakness over the last six months such as Tullett Prebon, Prudential, Melrose and 3 A trust’s net asset value (NAV) is calculated as available shareholders’ funds divided average rate of following the The Daily Telegraph, Federal market close mid price. with an above shares were issued Dividends: Financial Times, historic lows, The Bank of England, 1 Source: Lipper as at 31.03.09, Informa. During the month latest full year dividend we started a new investment in Wolseley, the plumbing by the number of shares in issue, with shareholders’ funds taken to be the net value 1,655,941 Ordinary Income Growth nvestmenttrusts Bank of Japan all announced Quantitative Calculated using the 2006 a further of Allianz Dresdner Price Information: and The Source: Datastream as at 31.03.09. distribution business, where we participated in a placing to rebuild an overleveraged of all the company’s assets after deducting liabilities. It is the capital NAV that is On 30th June www.rcm.com/i Reserve, Swiss National Bank 2 winding up cost to existing last defence shown, which excludes any income. and planned achieved at no (Chairman), in what is seen by many as the price. divided by the current share balance sheet. The termsshareholders’ funds divided extremely attractive and the offered to new investors were reconstruction in assets was Hugh Stevenson Easing schemes to increase liquidity the news, with the is calculated as available multiple of sales net value plc. The increase Mike McKeon, Markets reacted positively to A trust’s net asset value (NAV) stock trades on a very funds taken to be the given the potential for margins to recover Investment Trust Board of Directors: low 3 Dick Barfield, against a deepening recession. Plummer, with shareholders’ Joe Scott year leading the way. by the number of shares in issue, the extremely low In linecurrently achieved. with current industry Sir James Sassoon, hardest hit earlier in the from after deducting liabilities. levels ‘fair value’ of debt. shareholders. cyclical industries which were announced that they were of all the company’s assets account the (Cont.) Henry Staunton as a number of US banks shown that take into month that sentiment in the Financials also rallied in March UK Equity month: they passed best practice NAVs are now We observed last the valuation of debt at fair value equity market was extremely recent low, and with high levels of cash sitting on the sidelines this rally may yet after allowing for the directors of the investment trust, who are Review after a Director, February. Barclays had an eventful This means NAVs are calculated NAVs with debt at market sentiment profitable in the January and Simon Gergel, to sell their iShares than at and repayment value. depressed,final after a further sharp sell-off conditions seemed ripe for a market rally. continue further. Given the scale of the problems facing the global economy and Fund Manager’s saw a sharp turnaround in the of England cut interest Investment Manager: government funding and looked or current market price, rather series of small of the cost of debt, and thus a around the world, such as the closely more March Bank FSA stress tests, rejected UKGlobal Investors RCM Allianz of some economic data, it is difficult to call the bottom A realistic impact positives in the economic data the impact this will have on corporate profits it seems unlikely that the foundations caution. The A company of market value provide a more any income. period of extreme a major unit. Despite the stabilisation NAV new shown, which excludes watched that isorders component of the Institute of Supply Managers Survey have the Treasury announced and unemployment figures realistic discount. It is the capital are yet being created for a sustained recovery in equity markets, but we continue low 0.5% and - £150bn of house prices continue to fall rates to a record to buy £75bn of the market just1407as US 020 7065 yet, encouraged investors to consider whether the rate of economic contraction is to believe that there are plenty of lowly valued stocks available for long-term Easing” programme in the poor rise at an alarming rate. “Quantitative of stabilisation Investor Services: around the world continue to slowing. Additionally there is now some hope that policy initiatives such as the investors. with some signs recovery. The price. the underweight in Banks, bonds. This coupled US, led to a market market close mid its benchmark individend with year March, expansion of the money supply, the US Treasury plan to encourage investment in in the UK and up 6%. There as at 31.03.09, Brunner underperformed latest full the The RCM (UK) Limited, 155 Bishopsgate, London EC2M 3AD economic news the mid cap index 1 Source: Lipper Calculated using of months, a detriment to performance. toxic assets from banks balance sheets, fiscal stimulus packages, and reduced gained 3% with as at 31.03.09. has worked well for a number which as investors FTSE 100 index cyclical industries 2 Source: Datastream share price. also had an impact on performance, funds divided rotation into current increased appetite for cyclicality be the net value riskier assets. As a consequence available shareholders’ mortgage rates may begin to bear fruit. The FTSE 100 has now rallied 17% from its massive sector Defensives divided by the is calculated as London EC2M 3AD was however up over 10%. funds taken to and switch into value (NAV) began to sell out of defensive names current industry RCM (UK) Limited, 155 Bishopsgate, and general retail and A trust’s net asset shares in issue, with shareholders’ In line within the portfolio were East Japan Railway, Reed with mining up 25% 9%. The defensive 3 with, for example, tobacco down by the number of liabilities. of this, the worst performers of debt. This over 10% and the more optimistic assets after deductinginto account the ‘fair value’ Prebon, BHP Billiton and utilities down of all the company’s now shown to take BAE Systems. Theof debt at fair value best performers were Tullett or languished with caused it to underperform with the portfolio are Elsevier and for the valuation month as it announced of the portfolio stock level best practice NAVs value. NAVs with Prebonmarket stellar after allowing Inter-broker dealer Tullett debt had at a high yield positioning was extreme volatility at the and Man means NAVs are calculated Informa. UK more an increase in trading volumes and at final repayment volatilitythus a led to realistic there Billiton (up 25%) price, rather than the of the cost of debt, and had themselves, in turn, accountable to the shareholders. market. However (up 69%), BHP Aviva and Centrica current market that impact recent market any income. holdings in Inchcape the negative tack, a more realistictherefore net income. excludes which benefitting from positions. On Rio Tinto and value provide that is shown, amongst other from not owning the capital NAV Group (up 27%) and we suffered included discount. It is 15% - 20%) Major transactions both fell (between 30% - 35%). the position in 3AD (both up between run and increasing London EC2M Standard Chartered after a strong outlook 155 Bishopsgate, in BHP Billiton, shares. The economic RCM (UK) Limited, taking some profits remaining Diageo time and by selling the levels for some Unilever, financed to return to trend large, solid, high with growth unlikely biased towards remains challenging portfolio remains to build still tight. The continued to look credit conditions however we have on low valuations on depressed valuations. yielding companies more cyclical businesses positions in certain Our investment trusts at a glance Our investment trusts are designed to provide income, growth or a combination of both to suit diﬀerent investment requirements. Invests in Investment objective Dividends paid UK equities Above average income and February, May, The Merchants Trust PLC income growth August, November Global equities Capital and income growth March, August The Brunner Investment Trust PLC UK equities Capital and income growth March, September British Portfolio Trust plc European equities Capital and income growth April, August Charter European Trust plc Global technology Long-term capital growth - RCM Technology Trust plc Endowment Capital growth over - Endowment Policy Trusts policies planned life How to invest Our investment trusts are UK based public limited CONTACT US companies traded openly on the London Stock If you have any queries regarding our Exchange. You can invest in one or more of the trusts investment trusts, or if you would like by purchasing shares through a stockbroker. Shares to be added to the mailing list for can also be held within an ISA and/or savings Financial Reports or fact sheets, our scheme and a number of suppliers oﬀer this facility, Investor Services team can be contacted on: including: Alliance Trust Savings HSBC (InvestDirect) 020 7065 1407 www.alliancetrust.co.uk www.hsbc.co.uk e-mail: Barclays Stockbrokers The Share Centre email@example.com www.barclaysstockbrokers.co.uk www.thesharecentre.co.uk website: Charles Stanley (FasTrade) www.rcm.com/investmenttrusts www.charles-stanley.co.uk Note: We are not responsible for the content and information on these websites. Source: The Association of Investment Companies as at 31 October 2008. Please note RCM (UK) Ltd does not make recommendations on where to buy investment trusts and is unable to provide ﬁnancial advice. You are strongly advised that if you are unsure about the most suitable option for your needs that you should contact a ﬁnancial adviser. Issued by RCM (UK) Limited. Registered oﬃce: 155 Bishopsgate, London, EC2M 3AD. Registered in England No. 2014586. Authorised and regulated by the Financial Services Authority (“FSA”), ref. 122219. The FSA’s address is 25 The North Colonnade, Canary Wharf, London, E14 5HS, website www.fsa.gov.uk.
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