There are usually more advertisements for funds in March trying to get investors to put money into their ISAs (a UK tax wrapper).
This year their annual performance figures look mouth-watering but it’s a hoax. The markets were on their knees at the end of March 2020 and any fund manager who simply did nothing for a year should have seen a gain of about 60% – I did. Funds only place adverts boasting of their performance when it looks good. Blog Bellew will not advertise its performance in Q1 this year as it’s unchanged.
A relatively new investment trust, for me, is Herald. It fell 7% in Q1 but in the past year has risen by 90%. “Herald’s objective is to achieve capital appreciation through investments in smaller quoted companies in the areas of communications, multi-media and technology. Investments may be made throughout the world. The business activities of investee companies will include information technology, broadcasting, printing and publishing and the supply of equipment and services to these companies.” (Herald website)
Katie Potts, like Charles Plowden, knows not all her investments will be good so she covers the field. The fund has 344 holdings and although only a few of them will be winners her strategy has paid off since inception in 1994. Funds under management have grown from £65 million to £1,500 million.
