City of London Investment Trust fund manager Job Curtis is in the studio with award-winning financial journalist Cherry Reynard to tackle investor questions. Job addressed concerns around a so-called ‘hard Brexit’ and possible implications for the Trust’s portfolio; and was pressed to explain his rationale behind specific stocks and sector themes underlying the portfolio.

Glossary

 

Closed-ended: Closed-end funds have a fixed number of shares and are traded among investors on an exchange. Like stocks, their share prices are determined according to supply and demand, and they often trade at a wide discount or premium to their net asset value.

Open-ended: An open-ended investment company (OEIC) is a type of company or fund in the United Kingdom that is structured to invest in other companies with the ability to adjust constantly its investment criteria and fund size

Gearing: A measure of a company’s leverage that shows how far its operations are funded by lenders versus shareholders. It is a measure of the debt level of a company. Within investment trusts it refers to how much money the trust borrows for investment purposes.

Liquidity: The ability to buy or sell a particular security or asset in the market. Assets that can be easily traded in the market (without causing a major price move) are referred to as ‘liquid’.

Tracker Fund: Index tracker funds aim to mirror the performance of an index, e.g. a FTSE 100 tracker fund will buy shares in all 100 companies in the index in proportion to the size of the companies in the index

Bear market: A financial market in which the prices of securities are falling. A generally accepted definition is a fall of 20% or more in an index over at least a two-month period. The opposite of a bull market.

Bull Market: A financial market in which the prices of securities are rising, especially over a long time. The opposite of a bear market.

 

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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