Investment company research
Investment companies, often referred to for historical reasons as investment trusts, are the oldest type of managed fund. Investment trusts are widely held by clients across the Brewin Dolphin group and make up more than one-tenth of the £24bn of total assets managed by the group. Investment trusts are companies in their own right, quoted on the Stock Exchange and with independent boards of directors. They also hold annual general meetings that all investors are entitled to attend. Investment trusts are introvert in nature, however, typically spending very little on advertising which is perhaps why they are less well known than other types of fund such as unit trusts.
Brewin Dolphin employs a full-time team of professional investment trust analysts to research the sector and provide updates and recommendations to the group. This process involves regular meetings with fund managers and boards, investment portfolio reviews and performance assessments over a range of timescales and against appropriate benchmarks. It also entails the analysis of more detailed aspects of the funds such as capital structures, gearing, discount control mechanisms and the accumulation of revenue reserves. As a leading participant in the UK investment trust industry, Brewin Dolphin is frequently canvassed by boards and managers as to the advisability of proposals such as capital restructuring, follow-on share issues and indeed ideas for company launches. Brewin Dolphin’s senior analyst, John Newlands, is also regularly quoted in the national and trade press on investment trust matters and has written for the Financial Times and other publications.