AIC 2024 Showcase

12th Oct '24 by ShoeShineBoy

10 comments 907 reads

Posting here rather than on the investment trust board in the hope more people respond....

I attended the AIC Showcase yesterday. Very enjoyable, my notes below. All of the presentations were recorded and I understand will be made available online so worth watching out for that on the AIC web site.

3 rooms had presentations ongoing throughout the day, agendas at the following link.

https://www.theaic.co.uk/the-investment-company-showcase-2024

2 final points that come to mind before my notes: 1.) I worked in the City of London for 20+ years and pre-Covid, it was packed.... everywhere! Tube trains, stations, offices, pubs and bars, cafes, sandwich shops. And there are ever more buildings going up. Yesterday, it was like a ghost town! A lots of the banks have moved to Canary Wharf and that is a super busy place most days. And it was Friday. But what a shame to see so few people around. Is there a problem ? I'm not sure but it was just very noticeable, that is all. 2.) I know Charles watched online and I'm interested to understand how that experience was because I could be tempted next time (SSB: you're a b#'&*y hypocrite!!).

Anyway, here are my notes, feedback welcome. Final point - apologies for the formatting, I write my notes on my iPhone and it seems they don't translate well into Stockopedia.

10:15 - 10:45 UK equities - are we finally getting there ? / Laura Foll

# Laura Foll is involved in the mgt of 3 investment trusts: Henderson Opportunities Trust (LON:HOT), Lowland Investment (LON:LWI) and Law Debenture (LON:LWDB). All focused on the UK market.

# Economists have been too pessimistic on UK growth and are continually behind the curve.

# UK consumer is in a good place with a recovering savings ratio post GFC.

# US consumers have spent their furlough cheques. UK consumers saved them and in some cases invested them!

# Why is a catalyst required for UK equities when they have done well ? Does the US overshadow every other market ? Maybe.

# UK does not have a big tech presence but does have some good long term compounders eg: Cranswick (LON:CWK)

# But the UK market is still seeing outflows.

# UK equities are cheap on every metric....

Leading PE: UK 12.8 RoW 21.2

EV/EBITDA: UK 7.5 RoW 14.2

…

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Redice

12th Oct '24

'I was tired by that point and left before the keynote speaker, some guy from ITV. Last year, it was that idiot Robert Peston who just didn't have anything positive to say.'

Just for your information, the keynote speaker was Justin Webb who has worked for the BBC since 1984 and last year it was Nick Robinson.

Rusty2

13th Oct '24

Robert Peston was in 2022. I'm not keen on him either.

jjis

14th Oct '24

Thanks for taking the time to share your notes from this. Just one thought on when you said "Also I am thinking of transferring out of Edinburgh Investment Trust (LON:EDIN) which has made me good gains, and into Law Debenture (LON:LWDB) which has better long term performance." You might want to think twice about that, as if you look at NAV performance over the last 3 years, since the new managers (LionTrust ) were appointed EDIN has been outperforming the Sector & LWDB. Also the current ~10% discount on EDIN is towards the top end of it range, while LWDB is on it's customary small premium for similar exposure, although you do get the Financial Service business too. I hold both.

Cheers

Jamie

ken mitchell

What a superb article that was ShoeShineBoy with loads of facts figures and analysis along with your own views, that will keep me busy following some of it up.

BUT!

What a shame that your stunning efforts on behalf of subscribers here that must have taken hours to prepare and write, has received almost no recognition. Maybe it’s because a lot of people won’t know anything about AIC and so didn’t even look at your article? Not sure that wherever else here you post it, it will get the recognition and follow up it deserves. I can give my thoughts on some of it, but you’ve seen my info and follow up to your previous articles and posts. Maybe pasting your article on the Investment Trust thread will mean some who missed seeing it, will now read it.

Manny many thanks.

Sun Seeker

A brilliantly written article, many thanks for that. Simply doing a 'thumbs up' didn't seem sufficient so wanted to thank you. Like Ken says, a shame such a brilliant write-up doesn't get more attention.

Scotty020

15th Oct '24

Hi SSB, another thanks for the write up. Really insightful stuff

Burnt Onions

Thanks SSB, enjoyed that, good of you to share.

ShoeShineBoy

20th Oct '24

Thanks for the feedback Ken, nice to hear that some Stockopedia subscribers found the above useful.

I notice the videos are now available on demand, hope the link below works. I couldn't attend the India session so I will certainly watch that at some point although I still view India as relatively expensive. If anyone has views to the contrary, then I'm interested to hear them.

https://showcase.theaic.co.uk/...

Hi Jamie

thanks for the feedback. Appreciate your views on Edinburgh Investment Trust (LON:EDIN) versus Law Debenture (LON:LWDB).

I bought Edinburgh Investment Trust (LON:EDIN) back in 2020 just after the mandate for the trust moved from Invesco (Mark Barnett was the manager) to Majedie (James DeUphaugh became the manager). There was some turnover of positions, James DeUphaugh bought shares on a number of occasions and a new low cost borrowing facility was also put in place (I seem to recall this was agreed for 10 years). The dive in the NAV and SP from Covid helped as the discount narrowed. That and the increase in the NAV both seemed to push the SP higher which was nice.

As you will know, James DeUpaugh has since retired and there are new joint managers of the trust who previously worked under James. So there is a little uncertainty there although the holdings are pretty defensive in my opinion and as you say the discount is standing at -11%.

But I like the managers of Law Debenture (LON:LWDB). They have been around longer. The portfolio is maybe not as defensive as Edinburgh Investment Trust (LON:EDIN). The trust also has the cash generation of the advisory business. And the long term performance of the trust is number 1 in the sector. But the shares are trading at NAV so no discount available.

Pros and cons. Trust you have done well out of holding both.

I will watch and wait to see what happens, I could be tempted to hold both as well.

SSB

chrismorris44

Wow, wow, wow! Thanks SSB for devoting so much time for authoring this thread. It’s really appreciated and inspiring

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ShoeShineBoy

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