STO CKS | FUNDS | I NVEST ME NT T RU STS | P E NS I ONS AND SAVI N GS

SHARES
VOL 19 / ISSUE 39 / 05 OCTOBER 2017 / £4.49

WE MAKE INVESTING EASIER

OUR T O P
STOCK PICKS
FOR 2017
10.7E %
GAIN
AVER AG
SO FAR

WILL EASYJET
BENEFIT FROM
RYANAIR AND
MONARCH WOES?

THE SIMPLE WAY

TO EXIT AN
INVESTMENT IF
SOMETHING GOES
WRONG

HOW TO INVEST IN
THE ELECTRIC VEHICLE
REVOLUT ON
The engineers, chemical firms and miners plugged into this fast growing industry
 EDITOR’S VIEW
Happy birthday to the
new-look Shares
We’ve been a digital-only publication for a year but helping investors since 1999
I
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IN POPULARITY
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2 | SHARES | 05 October 2017
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SH IT 1a
Contents INTERACTIVE
PAGES
CLICK ON PAGE
05 OCTOBER 2017 NUMBERS TO JUMP
TO THE RELEVANT
STORY

EDITOR’S VIEW
02 Happy birthday to
the new-look Shares
8
BIG NEWS
06 EasyJet could benefit
from Ryanair and
Monarch problems
BIG NEWS
07 Boost for
housebuilders and
real estate firms
BIG NEWS
08 Land of the GREAT IDEAS
rising dividends
2 11 Allergy Therapeutics
is really exciting
BIG NEWS
08 Our top picks of the GR EAT ID EAS U PDAT E
year continue to 12 We update our views
outperform on XP Power and
Imperial Brands
STORY IN NUMBERS
09 Shares in AIM U ND ER T HE B ONNET
superstar CVS are 14 Newly-listed retailer
up nearly 16-fold targets five-fold
since 2010 increase in sales
GREAT IDE AS FEAT U R E
10 Fill up on Greencore 16 How to use stop
while the market is losses to protect
feasting elsewhere your portfolio

securities, derivatives or positions with spread betting organisations that they

DISCLAIMER have an interest in should first clear their writing with the editor. If the editor
agrees that the reporter can write about the interest, it should be disclosed to

IMPORTANT
Shares publishes information and ideas which are of interest to investors. It
does not provide advice in relation to investments or any other financial matters.
Comments published in Shares must not be relied upon by readers when they
make their investment decisions. Investors who require advice should consult a
properly qualified independent adviser. Shares, its staff and AJ Bell Media Limited
do not, under any circumstances, accept liability for losses suffered by readers as
a result of their investment decisions.
Members of staff of Shares may hold shares in companies mentioned in the
magazine. This could create a conflict of interests. Where such a conflict exists it
will be disclosed. Shares adheres to a strict code of conduct for reporters, as
set out below.
1. In keeping with the existing practice, reporters who intend to write about any
readers at the end of the story. Holdings by third parties including families, trusts,
self-select pension funds, self select ISAs and PEPs and nominee accounts are
included in such interests.
2. Reporters will inform the editor on any occasion that they transact shares,
derivatives or spread betting positions. This will overcome situations when the
interests they are considering might conflict with reports by other writers in the
magazine. This notification should be confirmed by e-mail.
3. Reporters are required to hold a full personal interest register. The whereabouts
of this register should be revealed to the editor.
4. A reporter should not have made a transaction of shares, derivatives or spread
betting positions for seven working days before the publication of an article that
mentions such interest. Reporters who have an interest in a company they have
written about should not transact the shares within seven working days after the
on-sale date of the magazine.

4 | SHARES | 05 October 2017

 Contents
MA I N FE ATURE MON E Y MATT ER S LARGER COMPANIES
20 How to invest in 32 How to switch to a 36 The power of
the electric vehicle stocks and shares ISA Ted Baker’s brand
revolution
MON E Y MAT T ER S SMALLER COMPANIES
MR M A RKE T  How much are YOU 37 Shares in Trinity
28 Are the rules for saving for retirement? could ‘triple in value’
UK listed company says broker
takeovers about to
get tougher?
20 SMALLER COMPANIES
38 S&U has smart
INVESTMENT TRUSTS approach to
30 Don’t allow fees motor finance
to become foes
WEEK AHEAD
40 Financial results and
ex-dividends over
the coming week
IND EX
41 Index of companies
and funds in this issue

36
WHO WE ARE
BROKER RATINGS EXPLAINED:
EDITOR: DEPUTY NEWS
Daniel EDITOR: EDITOR: We use traffic light symbols in the magazine to illustrate
Coatsworth Tom Sieber Steven Frazer broker views on stocks.
@SharesMagDan @SharesMagTom @SharesMagSteve

FUNDS AND REPORTER: JUNIOR REPORTER: CONTRIBUTORS Green means buy, Orange means hold, Red means sell.
INVESTMENT TRUSTS David Stevenson Lisa-Marie Janes Emily Perryman
EDITOR: @SharesMagDavid @SharesMagLisaMJ Tom Selby
James Crux The numbers refer to how many different brokers have
@SharesMagJames that rating.
PRODUCTION ADVERTISING MANAGING DIRECTOR
Mike Boydell
Eg: 4 2 1 means four brokers have buy ratings,
Head of Design Sales Executive
Rebecca Bodi Nick Frankland
two brokers have hold ratings and one broker has a sell
020 7378 4592 rating.
Designer nick.frankland@sharesmagazine.co.uk
Darren Rapley
The traffic light system gives an illustration of market views
Shares magazine is published weekly every Thursday (50 times per year) by AJ Bell Media Limited, but isn’t always a fully comprehensive list of ratings as some
49 Southwark Bridge Road, London, SE1 9HH. Company Registration No: 3733852.
banks/stockbrokers don’t publicly release this information.
All Shares material is copyright. Reproduction in whole or part is not permitted without written
permission from the editor.

05 October 2017 | SHARES | 5

 BIG NEWS

EasyJet could benefit

from Ryanair and
Monarch problems
We explain why investors are racing to buy shares in the low cost airline

L ow-cost airline EasyJet (EZJ)ĐŽƵůĚďĞŶĞĮƚ

from the recent drama surrounding its rivals
Ryanair (RYA) and Monarch.
Ryanair has dominated the headlines over the
ƉĂƐƚĨĞǁǁĞĞŬƐĂŌĞƌĐĂŶĐĞůůŝŶŐƚŚŽƵƐĂŶĚƐŽĨŇŝŐŚƚƐ
due to an issue with pilots’ rosters. That’s caused
severe brand damage and could prompt travellers
to shun the airline near term.
The damage is not yet evident in its passenger
ƐƚĂƟƐƟĐƐĂƐƚŚĞůĂƚĞƐƚĮŐƵƌĞƐ;ϯKĐƚͿƐŚŽǁĂϭϬй
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dŚĞh<͛ƐĮŌŚůĂƌŐĞƐƚĂŝƌůŝŶĞDŽŶĂƌĐŚǁĞŶƚ
ŝŶƚŽĂĚŵŝŶŝƐƚƌĂƟŽŶŽŶϮKĐƚŽďĞƌ͕ůĞĂĚŝŶŐƚŽƚŚĞ
ĐĂŶĐĞůůĂƟŽŶŽĨϯϬϬ͕ϬϬϬĨƵƚƵƌĞŬŝŶŐƐ͘dŚĂƚ
ĞīĞĐƟǀĞůLJĐƌĞĂƚĞƐĂŶŽƉƉŽƌƚƵŶŝƚLJĨŽƌŽƚŚĞƌĂŝƌůŝŶĞƐ
ƚŽĐĂƉŝƚĂůŝƐĞŽŶƌĞĚƵĐĞĚĐŽŵƉĞƟƟŽŶ͘
EasyJet is widely expected to be among the
airlines interested in acquiring assets from
DŽŶĂƌĐŚŽƵƚŽĨĂĚŵŝŶŝƐƚƌĂƟŽŶǁŝƚŚĂŝƌƉŽƌƚƐůŽƚƐ
seen as one of the major prizes.
HOW HAS THE STOCK MARKET REACTED?
We’ve looked at how airline share prices
have moved over the past three weeks which
ĞŶĐĂƉƐƵůĂƚĞƐƚŚĞĨƵůůƉĞƌŝŽĚŽĨŝŶĚƵƐƚƌLJĚŝƐƌƵƉƟŽŶ͘
ZLJĂŶĂŝƌŝƐĚŽǁŶϲйƚŽΦϭϲ͘ϵϮ͕ĂƐLJ:ĞƚŝƐƵƉϲй
ƚŽάϭϮ͘ϴϯ͕Wizz Air (WIZZ)ŝƐƵƉϰйƚŽάϯϬ͘ϭϬĂŶĚ
ƌŝƟƐŚŝƌǁĂLJƐ͛ŽǁŶĞƌ/ŶƚĞƌŶĂƟŽŶĂůŽŶƐŽůŝĚĂƚĞĚ
ŝƌůŝŶĞƐ;/'ͿŝƐƵƉϭйƚŽϲϬϴƉ͘dŚĞŵĂƌŬĞƚŝƐĐůĞĂƌůLJ
ƉƌŝĐŝŶŐŝŶĂŵŽƌĞĨĂǀŽƵƌĂďůĞƉŽƐŝƟŽŶĨŽƌĂƐLJ:Ğƚ͘
BULL AND BEAR CASE
h^ĂŶĂůLJƐƚ:ĂƌƌŽĚĂƐƚůĞƐĂLJƐĂƐLJ:ĞƚŝƐůŝŬĞůLJƚŽ
ďĞŶĞĮƚĨƌŽŵZLJĂŶĂŝƌ͛ƐŝƐƐƵĞƐĂƐƚŚĞĐƵƐƚŽŵĞƌďĂƐĞ
ŽǀĞƌůĂƉƐŵŽƌĞǁŝƚŚZLJĂŶĂŝƌ͛ƐƚŚĂŶƌŝƟƐŚŝƌǁĂLJƐ͘
ĂƐƚůĞŝƐĂůƐŽĞŶĐŽƵƌĂŐĞĚďLJĂƐLJ:Ğƚ͛ƐƉůĂŶŶĞĚ
investment in a new cloud-based data hub that
ƐŚŽƵůĚƉƌŽǀŝĚĞƉĞƌƐŽŶĂůŝƐĞĚŽīĞƌƐĂŶĚŝŶĨŽƌŵĂƟŽŶ
to travellers.
,ŽǁĞǀĞƌ͕ŶŽƚĞǀĞƌLJŽŶĞŝƐŝŵƉƌĞƐƐĞĚ͘ĂŶĂĐĐŽƌĚ
Genuity analyst Nigel Parson concedes that
ŝŶĐƌĞĂƐĞĚĚŝŐŝƟƐĂƟŽŶƐŚŽƵůĚŝŵƉƌŽǀĞĞĸĐŝĞŶĐLJ
ĂŶĚĐŽƐƚƌĞĚƵĐƟŽŶƐ͕ďƵƚŚĞĂƌŐƵĞƐƚŚĂƚƚŚĞ
ĐŽŵƉĂŶLJĨĂĐĞƐƐŽŵĞ͚ŚĂƌƐŚƌĞĂůŝƟĞƐ͛͘
‘The problem for EasyJet is that passenger yields
are under pressure and likely to remain so in the
ŶĞĂƌƚĞƌŵ͕͛ƐĂLJƐWĂƌƐŽŶ͘
,ĞƐĂLJƐĐŽŵƉĞƟƟŽŶĂƚŵĂŶLJŽĨƚŚĞĂŝƌůŝŶĞ͛Ɛ
ďĂƐĞƐŚĂƐŝŶĐƌĞĂƐĞĚƐŝŐŶŝĮĐĂŶƚůLJŝŶƌĞĐĞŶƚLJĞĂƌƐ
ĂŶĚƚŚĂƚƚŚŝƐŝƐĞdžƉĞĐƚĞĚƚŽĐŽŶƟŶƵĞ͘
ĞƐƉŝƚĞƚŚĞƌĞĐĞŶƚŇŝŐŚƚĐĂŶĐĞůůĂƟŽŶƐĂŶĚ
ƌĞĚƵĐĞĚĐĂƉĂĐŝƚLJŐƌŽǁƚŚ͕WĂƌƐŽŶƌĞŝƚĞƌĂƚĞƐZLJĂŶĂŝƌ
ĂƐŚŝƐƚŽƉĐŚŽŝĐĞĚƵĞƚŽŝƚƐ͚ĐŽƐƚďĂƐĞ͕ƐƵƉĞƌŝŽƌ
margins and strong growth into primary and higher
LJŝĞůĚŝŶŐĂŝƌƉŽƌƚƐ͛͘;>D:Ϳ
dŽƚĂůĂŝƌůŝŶĞƐƉĞŶĚŝƐƵƉďLJĂƉƉƌŽdžŝŵĂƚĞůLJϭйŽǀĞƌ
ƚŚĞůĂƐƚϭϮŵŽŶƚŚƐ͕ĂĐĐŽƌĚŝŶŐƚŽĂŶĂůLJƐŝƐďLJh^͘
͚ƌŝƟƐŚŝƌǁĂLJƐƐĞĞŵƐƚŽďĞĐĂƉƚƵƌŝŶŐŵŽƐƚŽĨ
ƚŚĞŝŶĐƌĞĂƐĞĂƐƐƉĞŶĚŝƐƵƉΕϱйLJĞĂƌͲŽǀĞƌͲLJĞĂƌ͕
ǁŚĞƌĞĂƐĂƐLJ:ĞƚĂŶĚZLJĂŶĂŝƌĂƌĞĚŽǁŶΕϲйĂŶĚ
ΕϭйƌĞƐƉĞĐƟǀĞůLJ;ůŝŬĞůLJĚƵĞƚŽƉƌŝĐŝŶŐͿ͘
͚tĞĞdžƉĞĐƚƚŚĂƚƌŝƟƐŚŝƌǁĂLJƐĐŽŶƟŶƵĞƐƚŽ
ďĞŶĞĮƚĨƌŽŵĨĂƌĞŵŝdžďĞƚǁĞĞŶůŽŶŐŚĂƵůĂŶĚƐŚŽƌƚ
ŚĂƵůĂƐǁĞůůĂƐƉƌĞŵŝƵŵǀƐĞĐŽŶŽŵLJƉĂƐƐĞŶŐĞƌ
ƐĞĂƚƐ͕͛ĐŽŶĐůƵĚĞƐƚŚĞŝŶǀĞƐƚŵĞŶƚďĂŶŬ͘

6 | SHARES | 05 October 2017

 BIG NEWS
BIG NEWS

Boost for housebuilders

and real estate firms
Help to Buy extended and two opportunities to back property investors’ plans

T he real estate space is grabbing

ŝŶǀĞƐƚŽƌƐ͛ĂƩĞŶƟŽŶŽŶĐĞĂŐĂŝŶ͘
^ŚĂƌĞƐŝŶŚŽƵƐĞďƵŝůĚĞƌƐĂƌĞ
marching higher on the promise of
further state support for the sector
SOCIAL
CIVITAS
HOUSING
RAISING
dŚŝƐŝƐŝǀŝƚĂƐ͛ĮƌƐƚĨƵŶĚƌĂŝƐĞƐŝŶĐĞĂ
άϯϱϬŵŽǀĞƌƐƵďƐĐƌŝďĞĚ/WK;ŝŶŝƟĂůƉƵďůŝĐ
ŽīĞƌŝŶŐͿůĂƐƚEŽǀĞŵďĞƌ͘
dŽĂǀŽŝĚƚŚĞǀĂůƵĞŽĨŝƚƐĞdžŝƐƟŶŐ
ƉŽƌƞŽůŝŽďĞŝŶŐĚŝůƵƚĞĚƚŚĞŝŶǀĞƐƚŵĞŶƚ
and two real estate investment trusts
;Z/dƐͿŚĂǀĞĂŶŶŽƵŶĐĞĚƐƵďƐƚĂŶƟĂů £350M trust is raising the money through the
ŝƐƐƵĞŽĨƐŚĂƌĞƐǁŚŝĐŚǁŝůůƌĞĐĞŝǀĞĂ
fundraising plans. ĮdžĞĚƋƵĂƌƚĞƌůLJĚŝǀŝĚĞŶĚŽĨϯйĂLJĞĂƌ͘
ŵŽŶŐƚŚĞŬĞLJĞĂƌůLJƚĂŬĞĂǁĂLJƐĨƌŽŵƚŚĞ dŚĞƐŚĂƌĞƐǁŝůůĐŽŶǀĞƌƚƚŽŽƌĚŝŶĂƌLJƐŚĂƌĞƐ
ŽŶƐĞƌǀĂƟǀĞƐ͛ĂŶŶƵĂůĐŽŶĨĞƌĞŶĐĞŝŶDĂŶĐŚĞƐƚĞƌ ĂŌĞƌĂLJĞĂƌŽƌǁŚĞŶϵϬйŽĨƚŚĞƉƌŽĐĞĞĚƐŚĂǀĞ
ǁĂƐĂάϭϬďŶĞdžƚĞŶƐŝŽŶƚŽƚŚĞ͚,ĞůƉƚŽƵLJ͛ ďĞĞŶŝŶǀĞƐƚĞĚ͘ƉƌŽƐƉĞĐƚƵƐĨŽƌƚŚĞŶĞǁŝƐƐƵĞŝƐ
programme as the party looks to win over ĞdžƉĞĐƚĞĚŝŶŵŝĚͲKĐƚŽďĞƌ͘
LJŽƵŶŐĞƌǀŽƚĞƌƐǁŚŽĂƌĞŝŶĐƌĞĂƐŝŶŐůLJŐƌĂǀŝƚĂƟŶŐ
towards Labour. KddKDͳhWWWZK,
ŵŽƌĞŵŽĚĞƐƚƐƵŵŝƐďĞŝŶŐƌĂŝƐĞĚďLJƌĞĂůĞƐƚĂƚĞ
&sKhZ,Kh^h/>Z/^/'t/EEZ investment trust AEW UK REIT (AEWU) which has
tĞǁƌŽƚĞĂďŽƵƚĂīŽƌĚĂďůĞŚŽŵĞƐƐƉĞĐŝĂůŝƐƚMJ ĂůƌĞĂĚLJƉƵďůŝƐŚĞĚĂƉƌŽƐƉĞĐƚƵƐŽŶŝƚƐάϰϬŵͲƚŽͲ
'ůĞĞƐŽŶ;'>Ϳ in last week’s issue of Shares;Ϯϴ^ĞƉ άϲϬŵŝƐƐƵĞ;Ϯϴ^ĞƉͿ͘
ϮϬϭϳͿ͕ŶŽƟŶŐƚǁŽƚŚŝƌĚƐŽĨŝƚƐĐƵƐƚŽŵĞƌďĂƐĞŵĂĚĞ dŚĞZ/dŝŶǀĞƐƚƐŝŶĂƌĂŶŐĞŽĨĐŽŵŵĞƌĐŝĂů
ƵƐĞŽĨ,ĞůƉƚŽƵLJ͘/ƚŝƐƐĞĞŶƚŽďĞŽŶĞŽĨƚŚĞďŝŐŐĞƐƚ ƉƌŽƉĞƌƟĞƐĨƌŽŵŝŶĚƵƐƚƌŝĂůƵŶŝƚƐƚŽŽĸĐĞƐĂŶĚ
ďĞŶĞĮĐŝĂƌŝĞƐŽĨƚŚĞƐĐŚĞŵĞĞdžƚĞŶƐŝŽŶ͘ ƐŚŽƉƐ͘dŚĞĨŽĐƵƐŝƐŽŶƉƌŽƉĞƌƟĞƐŝŶĂƌĞĂƐǁŝƚŚ
^ŽĐŝĂůŚŽƵƐŝŶŐŝŶǀĞƐƚŽƌŝǀŝƚĂƐ^ŽĐŝĂů,ŽƵƐŝŶŐ ŐŽŽĚƐƵƉƉůLJĂŶĚĚĞŵĂŶĚĚLJŶĂŵŝĐƐ͕ƚLJƉŝĐĂůůLJǁŝƚŚ
(CSH)ŚĂƐĂŶŶŽƵŶĐĞĚƉůĂŶƐ;Ϯϴ^ĞƉͿƚŽƌĂŝƐĞ tenants on shorter than average leases.
άϯϱϬŵƚŽŚĞůƉŝƚƚĂŬĞĂĚǀĂŶƚĂŐĞŽĨĂŶ AEW UK WŽƌƞŽůŝŽŵĂŶĂŐĞƌůĞdž^ŚŽƌƚƐĂLJƐƚŚĞƌĞ
ŝĚĞŶƟĮĞĚάϱϬϬŵŝŶǀĞƐƚŵĞŶƚƉŝƉĞůŝŶĞŝŶ
its space.
REIT RAISING ŝƐĂ͚ďŝŐƉŝƉĞůŝŶĞŽĨƉŽƚĞŶƟĂůĂƐƐĞƚƐ͛͘^ŚĞ
ĂĚĚƐŵŽƌĞůŝŵŝƚĞĚĚŝƌĞĐƚĐŽŵƉĞƟƟŽŶ
The investment trust is focused
ŽŶƉƌŽǀŝĚŝŶŐĂĐĐŽŵŵŽĚĂƟŽŶĨŽƌ
£40M TO in this part of the market means it is
ŶŽƚƚŽŽĚŝĸĐƵůƚƚŽĮŶĚŽƉƉŽƌƚƵŶŝƟĞƐ
ŝŶĚŝǀŝĚƵĂůƐǁŝƚŚƐƉĞĐŝĮĐŶĞĞĚƐ͕ƐƵĐŚ
ĂƐƚŚŽƐĞǁŝƚŚĚŝƐĂďŝůŝƟĞƐŽƌǁŚŝĐŚĂƌĞ
£60M ŽīĞƌŝŶŐƐƵĸĐŝĞŶƚůLJŐĞŶĞƌŽƵƐ
yields to underpin a promised yield from
coming out of prison. ƚŚĞZ/dŽĨϴй͘;d^Ϳ

05 October 2017 | SHARES | 7

 GREAT IDEAS
Fill up on Greencore while the
market is feasting elsewhere
Shares in sandwiches-to-soups maker have been oversold
S hare price weakness at
sandwiches, salads and
chilled soups supplier
Greencore (GNC) presents a
tasty buying opportunity for
growth and income seekers.
The convenience foods
ŵĂŬĞƌ͛ƐŵĂƌŐŝŶƐĂŶĚĐĂƐŚŇŽǁƐ
have come under pressure in
recent years due to high levels
of investment, yet Greencore
is a business with strong
fundamentals entering a period
of nourishing returns.
'Kͳ'K'ZKtd,
Greencore is a leading provider
of food-to-go and grocery
products, supplying own-label
products to all the major UK
supermarkets.
Following December 2016’s
άϱϵϰ͘ϯŵĂĐƋƵŝƐŝƟŽŶŽĨWĞĂĐŽĐŬ
Foods, Dublin-headquartered
Greencore is now also a leading
manufacturer of consumer
packaged goods for major
food brands in the US, among
ƚŚĞŵ<ƌĂŌ,ĞŝŶnj͕ĂŶĚƉƌŽĚƵĐĞƐ
10 | SHARES | 05 October 2017
GREENCORE È BUY
(GNC:AIM) 184.6p
Stop loss: 147.7p
Market value: £1.28bn
products for US convenience
retail and food service leaders.
^ĞŶƟŵĞŶƚƚŽǁĂƌĚƐ'ƌĞĞŶĐŽƌĞ
is poor following the loss of
ŝƚƐ^ƚĂƌďƵĐŬƐĨƌŽnjĞŶƉƌŽĚƵĐƚƐ
ĐŽŶƚƌĂĐƚ͘ƉƌĞĐĂƵƟŽŶĂƌLJ
product recall in the US has also
ǁĞŝŐŚĞĚŽŶƐĞŶƟŵĞŶƚ͘
Margins have been impacted
ďLJŝŶƉƵƚĐŽƐƚĂŶĚǁĂŐĞŝŶŇĂƟŽŶ
ŝŶƚŚĞh<͕ǁŚŝůĞĨƌĞĞĐĂƐŚŇŽǁ
has been hampered by major
capital expenditure projects to
support growth.
ZKsZzd/D ƌĞƐƉĞĐƟǀĞůLJ͘
Why are we bullish on the stock?
tĞůů͕'ƌĞĞŶĐŽƌĞ͛ƐĐŽŵƉĞƟƟǀĞ
ƐƚƌĞŶŐƚŚƐĂŶĚŐƌŽǁƚŚƉŽƚĞŶƟĂů
are currently underappreciated
by the market.
Food-to-go is one of the
fastest growing parts of the UK
food industry, underpinned by
changes in consumer behaviour.
Major projects to support
new wins with key customers
ĂƌĞĞŶƚĞƌŝŶŐƚŚĞĮŶĂůƐƚĂŐĞƐŽĨ
delivery, meaning Greencore’s
ƐƉĞŶĚŝŶŐǁŝůůĨĂůů͕ĨƌĞĞĐĂƐŚŇŽǁ
should rise and debt levels can
be reduced.
&ƌŽnjĞŶďƌĞĂŬĨĂƐƚƐĂŶĚǁŝĐŚĞƐͲ
ƚŽͲĐŚŝůůĞĚŵĞĂůƐŵĂŬĞƌWĞĂĐŽĐŬ
has transformed Greencore’s
business across the pond.
WƌŽǀŝĚŝŶŐĂŐƌŽǁƚŚƉůĂƞŽƌŵ
ŽĨƌĞĂůƐĐĂůĞ͕WĞĂĐŽĐŬ
has strengthened the US
management team and gears
Greencore into a trend towards
outsourced manufacturing
among US consumer packaged
goods giants.
EƵŵŝƐ^ĞĐƵƌŝƟĞƐŚĂƐĂ͚ďƵLJ͛
ƌĂƟŶŐĂŶĚϯϬϬƉƉƌŝĐĞƚĂƌŐĞƚ
ĨŽƌ'ƌĞĞŶĐŽƌĞ͕ĞdžƉĞĐƟŶŐĂŶ
increased focus on margin
ŐƌŽǁƚŚ͕ĐĂƐŚŐĞŶĞƌĂƟŽŶĂŶĚ
improving returns going forward.
For the year to September
2017 – the results are due
next month (28 Nov) – Numis
forecasts improved pre-tax
ƉƌŽĮƚŽĨάϭϭϳ͘ϯŵ;ϮϬϭϲ͗
£85.9m) ahead of £147.4m and
άϭϲϯ͘ϯŵŝŶĮƐĐĂůϮϬϭϴĂŶĚϮϬϭϵ
Based on forecast September
2018 earnings per share of
ϭϳ͘ϱƉ;ϮϬϭϳ͗ϭϱ͘ϵƉͿĂŶĚĂ
ϲ͘ϭϴƉĚŝǀŝĚĞŶĚ;ϮϬϭϳ͗ϱ͘ϱƉͿ͕
Greencore’s growth prospects
are materially undervalued
ŽŶĂWŽĨϭϬ͘ϱƟŵĞƐǁŝƚŚĂ
nourishing yield of 3.3%. (JC)
BROKER SAYS: 10 0 0
GREENCORE GROUP
FTSE ALL SHARE
Source: Thomson Reuters Datastream
300
Rebased to first
280
260
240
220
200
180
2016 2017

Allergy Therapeutics is
really exciting
The allergy specialist has an interesting pipeline and significant catalysts ahead
F or people who love the
warmer months, allergies
can really get you down,
whether it’s the constant
ƐŶĞĞnjŝŶŐ͕ƚŚĞŝƚĐŚLJĞLJĞƐŽƌƚŚĞ
endlessly runny nose while
ƐƉƌŝŶƟŶŐĨŽƌƚŚĞďƵƐ͘
One company trying to
ĞƌĂĚŝĐĂƚĞƚŚĞĨƌƵƐƚƌĂƟŶŐƐŝĚĞͲ
ĞīĞĐƚƐŽĨĂůůĞƌŐŝĞƐŝƐAllergy
dŚĞƌĂƉĞƵƟĐƐ;'z͗/DͿ, a
business which generated
£69.9m in revenue in the 12
months to 30 June 2017.
It sells proprietary and third
party products in nine major
ƵƌŽƉĞĂŶĐŽƵŶƚƌŝĞƐĂŶĚǀŝĂ
ĚŝƐƚƌŝďƵƟŽŶĂŐƌĞĞŵĞŶƚƐŝŶĂŶ
ĂĚĚŝƟŽŶĂůϭϬĐŽƵŶƚƌŝĞƐ͘
Its pipeline of products in
clinical development includes
vaccines for grass, tree and
house dust mite.
WEhd>>Z'zDZ<d
E͚ΨϴEDZ<d
KWWKZdhE/dz͛
Allergies aren’t just associated
ǁŝƚŚƉĞŽƉůĞŐĞƫŶŐĐŽůĚͲůŝŬĞ
symptoms. Some allergic
ƌĞĂĐƟŽŶƐĐĂŶďĞůŝĨĞƚŚƌĞĂƚĞŶŝŶŐ
such as anaphylaxis which can
be triggered by certain foods
such as peanuts.
ůůĞƌŐLJdŚĞƌĂƉĞƵƟĐƐŚĂƐ
developed a vaccine called
WŽůLJǀĂĐǁŚŝĐŚŝƚŚŽƉĞƐǁŝůůĐƵƌĞ
peanut allergies, although it is
ƐƟůůŝŶĞĂƌůLJƐƚĂŐĞƐŽĨƚĞƐƟŶŐ͘
If the company is eventually
successful with the trials, the
allergy specialist could tap
ALLERGY
XXXX È BUY
THERAPEUTICS
(xxx) xxxp
Stop loss: 32.3p
(AGY:AIM) xxp
Stop loss:
Market 25.8p
value: xxx
Market cap: £254.8m
an $8bn worldwide market
opportunity.
/Z,WK>>EdZdDEd
^ddKZ/s^>^/E
hZKW /ĨůůĞƌŐLJdŚĞƌĂƉĞƵƟĐƐŝƐƚŚĞ
One of the key catalysts for the
ĐŽŵƉĂŶLJŝƐWŚĂƐĞ///ƚƌŝĂůƌĞƐƵůƚƐ
ĨŽƌŝƚƐWŽůůŝŶĞdžYƵĂƩƌŽ;WYͿ
Birch immunotherapy to treat
symptoms from birch pollen,
which can cause hay fever.
Approximately one in four
people in the UK are allergic to
pollen from trees, according
GREAT IDEAS
ƚŽƚŚĞE,^͘,ĂLJĨĞǀĞƌƐƵīĞƌĞƌƐ
ƉĂƌƟĐƵůĂƌůLJƐƚƌƵŐŐůĞǁŚĞŶƚƌĞĞ
pollen is at its worst between late
March and mid-May.
WYŝƌĐŚŝƐĂůƌĞĂĚLJďĞŝŶŐƐŽůĚ
ŝŶƵƌŽƉĞŽŶĂƌĞƐƚƌŝĐƚĞĚďĂƐŝƐ
but the company wants approval
ĂĐƌŽƐƐƵƌŽƉĞŝŶϮϬϭϵƚŽĞdžƉĂŶĚ
its scope and boost sales.
ůůĞƌŐLJdŚĞƌĂƉĞƵƟĐƐŝƐ
ĞdžƉĞĐƟŶŐƚŚĞWŚĂƐĞ///ƚƌŝĂůĚĂƚĂ
in the second half of 2018 and
hopes to also use it for approval
in the US.
ĮƌƐƚƚŽůĂƵŶĐŚWYŝƌĐŚŝŶƚŚĞ
h^ďLJϮϬϮϮ͕^ƟĨĞůĂŶĂůLJƐƚ
ŚƌŝƐƟĂŶ'ůĞŶŶŝĞĞƐƟŵĂƚĞƐ
$400m in peak sales with a 20%
to 25% market share.
Another important step for
the company is to complete the
WŚĂƐĞ//ĚŽƐĞͲƌĂŶŐŝŶŐƐƚƵĚLJŽĨ
WY'ƌĂƐƐ͕ĂŶŝŶũĞĐƟŽŶƚŚĂƚĂŝŵƐ
to cure grass pollen-induced
ĂůůĞƌŐŝĐƌŚŝŶŝƟƐ͕ǁŚŝĐŚĐĂƵƐĞƐ
ŝŶŇĂŵŵĂƟŽŶŽĨƚŚĞŝŶƐŝĚĞŽĨ
the nose.
Investors should appreciate
ƚŚĂƚƉŚĂƌŵĂĐĞƵƟĐĂůĐŽŵƉĂŶŝĞƐ
spend a lot of money on product
development, hence why Allergy
dŚĞƌĂƉĞƵƟĐƐŝƐĨŽƌĞĐĂƐƚƚŽŚĂǀĞ
ŶĞŐĂƟǀĞĨƌĞĞĐĂƐŚŇŽǁĨŽƌĂƚ
least the next three years.
You should only invest in the
ƐƚŽĐŬŝĨLJŽƵŚĂǀĞĂŶĂƉƉĞƟƚĞ
for risk and understand that any
gains will come in the form of
a rising share price and that
dividends are unlikely for the
foreseeable future. (LMJ)
05 October 2017 | SHARES | 11
 GREAT IDEAS UPDATES

XP POWER IMPERIAL BRANDS

(XPP) £28.38
Gain to date: 17.7%
Original entry point:
Buy at £24.11, 6 July 2017
d,WKtZ^t/d,/E' tools designer has
ƌĞƚƵƌŶĞĚƚŽƚŚĞĂĐƋƵŝƐŝƟŽŶƚƌĂŝůŶĞĂƌůLJƚǁŽLJĞĂƌƐ
ĂŌĞƌŝƚƐůĂƐƚĨŽƌĂLJ͘dŚĞΨϮϯŵ;άϭϳŵͿƉƵƌĐŚĂƐĞŽĨ
h^ͲďĂƐĞĚƌĂĚŝŽĨƌĞƋƵĞŶĐLJ;Z&ͿƉŽǁĞƌƐƵƉƉůŝĞƐ
ďƵƐŝŶĞƐƐŽŵĚĞůůŽŽŬƐůŝŬĞĂƐĞŶƐŝďůĞŵŽǀĞ͕ŝŶ
ŽƵƌǀŝĞǁ͘
dŚĞĂĐƋƵŝƐŝƟŽŶŽƉĞŶƐƵƉĂŶĞǁŵĂƌŬĞƚƐĞŐŵĞŶƚ
ĨŽƌXP Power (XPP)͕ǁŝƚŚƚLJƉŝĐĂůĂƉƉůŝĐĂƟŽŶƐŝŶ
ƉůĂƐŵĂͲǁĞůĚŝŶŐĂŶĚďŽƚŚĚŝĞůĞĐƚƌŝĐĂŶĚŝŶĚƵĐƟŽŶ
ŚĞĂƟŶŐ͘
ZĞƐĞĂƌĐŚŐƌŽƵƉĚŝƐŽŶƐĂLJƐƚŚĞŽŵĚĞů
ĂĐƋƵŝƐŝƟŽŶǁŝůůŝŶĐƌĞĂƐĞyWWŽǁĞƌ͛ƐĞdžƉŽƐƵƌĞƚŽ
ƚŚĞƐĞŵŝĐŽŶĚƵĐƚŽƌŵĂŶƵĨĂĐƚƵƌŝŶŐŝŶĚƵƐƚƌLJ͘/ƚƐĂLJƐ
ƚŚĞƌĞŝƐƐŽŵĞĐƵƐƚŽŵĞƌŽǀĞƌůĂƉďĞƚǁĞĞŶyWĂŶĚ
ŽŵĚĞůďƵƚŶŽƉƌŽĚƵĐƚŽǀĞƌůĂƉ͘
ŽŵĚĞůǁŝůůĂĚĚĂďŽƵƚϴйƚŽyW͛ƐŐƌŽƵƉ
ƌĞǀĞŶƵĞƐŝŶϮϬϭϴĂŶĚϮϬϭϵ͕ĂĐĐŽƌĚŝŶŐƚŽĨŽƌĞĐĂƐƚƐ
ĨƌŽŵŝŶǀĞƐƚŵĞŶƚďĂŶŬ/ŶǀĞƐƚĞĐ͕ĂŶĚŵŝĚͲƐŝŶŐůĞ
ĚŝŐŝƚƐƚŽĞĂƌŶŝŶŐƐ͘dŚĂƚŝŵƉůŝĞƐĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ
ŽĨϭϰϰ͘ϰƉŶĞdžƚLJĞĂƌƚŽϯϭĞĐĞŵďĞƌϮϬϭϴ͕ƉƵƫŶŐ
ƚŚĞƐŚĂƌĞƐŽŶĂĨŽƌǁĂƌĚƉƌŝĐĞƚŽĞĂƌŶŝŶŐƐŵƵůƟƉůĞ
ŽĨϭϵ͘ϳ͘
^ŚĂƌĞƐŝŶƚŚĞĐŽŵƉĂŶLJŚĂǀĞĞŶũŽLJĞĚĂĮƌŵƌƵŶ
ƐŝŶĐĞŽƵƌŽƌŝŐŝŶĂůĨĞĂƚƵƌĞŝŶĞĂƌůLJ:ƵůLJ͕ĂůƚŚŽƵŐŚǁĞ
ĂůƐŽƌĞŵŝŶĚƌĞĂĚĞƌƐŽĨƚŚĞƐƚŽĐŬ͛ƐĂƩƌĂĐƟǀĞϮ͘ϵй
XP POWER (DI)
LJŝĞůĚŝŶŐĚŝǀŝĚĞŶĚ
FTSE ALL SHARE ;ϮϬϭϴͿ͕ƉĂŝĚ
3000 quarterly.
Source: Thomson Reuters Datastream
(IMB) £31.55
Loss to date: 17.7%
Original entry point:
Buy at £38.33, 27 April 2017
OUR BULLISH CALL on Imperial Brands (IMB) may
ďĞϭϳ͘ϳйŝŶƚŚĞƌĞĚ͕ďƵƚǁĞ͛ƌĞƐƚĂLJŝŶŐƉŽƐŝƟǀĞŽŶ
ƚŚĞƚŽďĂĐĐŽŵƵůƟŶĂƟŽŶĂůĨŽƌŝƚƐƌĞƐŝůŝĞŶƚĞĂƌŶŝŶŐƐ
ĂŶĚƌŽďƵƐƚĐĂƐŚŇŽǁƐ͕ǁŚŝĐŚƐƚĞŵĨƌŽŵƐƚƌŽŶŐ
brands such as ĂǀŝĚŽī, Gauloises Blondes and JPS
ĐŝŐĂƌĞƩĞƐĂŶĚMontecristo cigars.
^ĞŶƟŵĞŶƚƚŽǁĂƌĚƐƚŚĞάϯϬ͘ϮϱďŶĐĂƉŝƐƉƌĞƐĞŶƚůLJ
ƉŽŽƌ͘/ŶǀĞƐƚŽƌƐĂƌĞĨƌĞƫŶŐŽǀĞƌƌĞŐƵůĂƚŽƌLJĐŚĂŶŐĞƐ
ŝŶƚŚĞh^ĂŶĚĂƌĞůĂƟǀĞůĂĐŬŽĨƉƌĞƐĞŶĐĞŝŶĐĞƌƚĂŝŶ
EĞdžƚ'ĞŶĞƌĂƟŽŶWƌŽĚƵĐƚ;E'WͿƐĞŐŵĞŶƚƐ͘
ƵƚŽƵƌĞŶƚŚƵƐŝĂƐŵŚĂƐďĞĞŶƌĞŝŶĨŽƌĐĞĚďLJ
ƌĞƐĞĂƌĐŚĨƌŽŵ/ŶǀĞƐƚĞĐ^ĞĐƵƌŝƟĞƐ͘dŚĞďƌŽŬĞƌ
ŝƐĂďƵLJĞƌǁŝƚŚĂάϰϯ͘ϲϬƉƌŝĐĞƚĂƌŐĞƚǁŚŝĐŚ
ŝŵƉůŝĞƐϯϴ͘ϮйƵƉƐŝĚĞĨŽƌŽŶĞŽĨŝƚƐƚŽƉĐŽŶƐƵŵĞƌ
ƐƚĂƉůĞƐƉŝĐŬƐ͘
/ŵƉĞƌŝĂů͛ƐƉƌĞͲĐůŽƐĞƚƌĂĚŝŶŐƵƉĚĂƚĞ;Ϯϴ^ĞƉͿ
ĐŽŶĮƌŵĞĚƚŚĞƚŽďĂĐĐŽƟƚĂŶŝƐŽŶƚƌĂĐŬƚŽŵĞĞƚĨƵůů
LJĞĂƌĞdžƉĞĐƚĂƟŽŶƐĂŶĚŝƐŐĞĂƌŝŶŐƵƉĨŽƌŶĞǁE'W
ůĂƵŶĐŚĞƐŝŶĨƵůůLJĞĂƌϮϬϭϴ͘
/ŶǀĞƐƚĞĐďĞůŝĞǀĞƐ͚ƚŚĞƐĞǁŝůůƌĞŵĂŝŶĨŽĐƵƐĞĚ
ŽŶĞͲǀĂƉŽƵƌĂŶĚƚŚĞblu brand, but the company
could yet surprise with launches in other areas. We
ƚŚŝŶŬ/ŵƉĞƌŝĂů͕ŝĨŝƚƐŽǁŝƐŚĞĚ͕ĐŽƵůĚůĂƵŶĐŚĂŚĞĂƚͲ
not-burn product within one year and at an easily
manageable cost.’
/ŵƉĞƌŝĂůŝƐƌĞďŽƵŶĚŝŶŐĨƌŽŵƐĞǀĞƌĂůǁĞĂŬĞƌLJĞĂƌƐ
IMPERIAL BRANDS as it migrated
ƐŵŽŬĞƌƐƚŽ

Rebased to first
FTSE ALL SHARE
Source: Thomson Reuters Datastream

2800 4600
2600 4400
Rebased to first
ĨĞǁĞƌ͕ƐƚƌŽŶŐĞƌ
2400 4200
4000
brands.
2200
2000 3800
1800 3600
1600 3400
1400 3200
2016 2017 3000
2016 2017

SHARES SAYS: È SHARES SAYS: È

Investec has again raised its target price which now Stay positive on the mega cap for its defensive
sits at £31.30. We expect more steady progress from characteristics, strong cash generation and
the shares. (SF) growing dividend. (JC)

BROKER SAYS: 3 0 0 BROKER SAYS: 2 0 0

12 | SHARES | 05 October 2017

 We always want
to get closer.
Dunedin Income Growth Investment Trust
ISA and Share Plan
Identifying companies with the potential to deliver both
share price growth and attractive income demands
first-hand knowledge.

At Aberdeen, we insist on meeting every company in which

we invest, before we invest. Because we believe getting close
up to possible investments is the only way to try to unearth
the richest sources of return.
Please remember, the value of shares and the income from
them can go down as well as up and you may get back less
than the amount invested. No recommendation is made,
positive or otherwise, regarding the ISA and Share Plan.
The value of tax benefits depends on individual circumstances
and the favourable tax treatment for ISAs may not be maintained.
We recommend you seek financial advice prior to making
an investment decision.

Request a brochure: 0808 500 4000

dunedinincomegrowth.co.uk

Issued by Aberdeen Asset Managers Limited, 10 Queen’s Terrace, Aberdeen AB10 1YG, which is authorised and
regulated by the Financial Conduct Authority in the UK. Telephone calls may be recorded. aberdeen-asset.co.uk Please quote DIGIT SM 04
 UNDER THE BONNET
Newly-listed retailer
targets five-fold increase
in sales
Fast fashion womenswear seller Quiz has joined the stock market ahead of a
big growth push
G iven a UK consumer
slowdown, the inexorable
ĐŚĂŶŶĞůƐŚŝŌƚŽƚŚĞǁĞď
ĂŶĚĐƵƚͲƚŚƌŽĂƚĐŽŵƉĞƟƟŽŶ
amongst clothing retailers,
ŝŶǀĞƐƟŶŐŝŶĂ͚ĨĂƐƚĨĂƐŚŝŽŶ͛
ǁŽŵĞŶƐǁĞĂƌŽƵƞŝƚĞŶŐĂŐĞĚŝŶ
a physical store roll-out might
not appeal to every investor.
So how has Quiz (QUIZ:AIM)
ŵĂŶĂŐĞĚƚŽĐĂƉƚƵƌĞŝŶǀĞƐƚŽƌƐ͛
ŝŶƚĞƌĞƐƚĂŶĚƐƵĐĐĞƐƐĨƵůůLJũŽŝŶĞĚ
the stock market (July 2017)
ĚĞƐƉŝƚĞƚŚĞĚŝĸĐƵůƚďĂĐŬĚƌŽƉĨŽƌ
the retail sector? To answer this
ƋƵĞƐƟŽŶ͕ůĞƚ͛ƐƚĂŬĞĂĐůŽƐĞƌůŽŽŬ
at the business.
Glasgow-headquartered
Quiz is among a new breed
ŽĨƵůƚƌĂͲĨĂƐƚĨĂƐŚŝŽŶďƌĂŶĚƐ
ĚŝƐƌƵƉƟŶŐƚŚĞƌĞƚĂŝůŵĂƌŬĞƚ
place. Think ASOS (ASC:AIM)
and Boohoo.com (BOO:AIM)
rather than Marks & Spencer
(MKS) or Bonmarche (BON).
&ĂƐƚĨĂƐŚŝŽŶŝƐĞƐƐĞŶƟĂůůLJ
retailers constantly producing
ŶĞǁĚĞƐŝŐŶƐƚŽĨĞĞĚĂŚƵŶŐƌLJ
ŵĂƌŬĞƚĨŽƌǁŽŵĞŶƐǁĞĂƌ͘/ƚ
ŝŶǀŽůǀĞƐĂŐƌĞĂƚĞƌŶƵŵďĞƌŽĨ
orders being placed at the
last minute, typically taking
ŝŶƐƉŝƌĂƟŽŶĨƌŽŵǁŚĂƚĐĞůĞďƌŝƟĞƐ
have been wearing.
Quiz specialises in occasion
wear and dressy casual wear
ƚŚĂƚŚĞůƉƐĨĞŵĂůĞƐ͕ŵĂŝŶůLJŝŶ
the 16-35 year old age bracket,
14 | SHARES | 05 October 2017
We explain what this company does
ƐƚĂŶĚŽƵƚĨƌŽŵƚŚĞĐƌŽǁĚ͘ ŽĸĐĞƌ^ŚĞƌĂnjZĂŵnjĂŶ͘
ŝƐƟŶĐƟǀĞ͕ŐůĂŵŽƌŽƵƐŽǁŶͲ ͚tĞƟĐŬĂůůƚŚĞďŽdžĞƐŽĨƐŽĐŝĂů
brand lines are growing rapidly. ŵĞĚŝĂ͕ĨĂƐƚĨĂƐŚŝŽŶĂŶĚǀĂůƵĞ͘
ŶĚũƵƐƚůŝŬĞĨĂƐƚͲĨĂƐŚŝŽŶ tĞŚĂǀĞĂǀĞƌLJƐƚƌŽŶŐŽĐĐĂƐŝŽŶ
ǁŝŶŶĞƌƐ^K^ĂŶĚŽŽŚŽŽ͕ ǁĞĂƌŽīĞƌʹƉƌŽŵƐ͕ǁĞĚĚŝŶŐƐ
Quiz boasts a burgeoning ĂŶĚŶŝŐŚƚƐŽƵƚʹĂŶĚĂƐƚƌŽŶŐ
ƐŽĐŝĂůŵĞĚŝĂĨŽůůŽǁŝŶŐĂŶĚŝƐ ĐĂƐƵĂůĚƌĞƐƐŽīĞƌ͘ŶĚƚŚĞYƵŝnj
ƐƵĐĐĞƐƐĨƵůůLJůĞǀĞƌĂŐŝŶŐĐĞůĞďƌŝƚLJbrand has got wide appeal. Go
ĂŶĚďůŽŐŐĞƌĐŽůůĂďŽƌĂƟŽŶƐƚŽ ŝŶƚŽŽƵƌƐƚŽƌĞƐĂŶĚLJŽƵ͛ůůƐĞĞ
raise brand awareness and ƚŚƌĞĞŐĞŶĞƌĂƟŽŶƐŽĨǁŽŵĞŶ
boost sales. ƐŚŽƉƉŝŶŐǁŝƚŚƵƐ͛͘
Quiz constantly develops its
PREVIOUS STRUGGLES own product lines, ensuring
The business went into the latest glamorous looks are
ĂĚŵŝŶŝƐƚƌĂƟŽŶŝŶϮϬϬϵĂŌĞƌ available at value prices. Today,
struggling with high rental costs Quiz trades in 300-plus outlets
ĂŶĚĚŝĸĐƵůƚƚƌĂĚŝŶŐĐŽŶĚŝƟŽŶƐ͘ ŐůŽďĂůůLJʹŝŶĐůƵĚŝŶŐƐƚĂŶĚĂůŽŶĞ
dŚĞZĂŵnjĂŶĨĂŵŝůLJ;ǁŚŝĐŚ stores, concessions with the
ŝŶĐůƵĚĞƐƚŚĞĨŽƵŶĚĞƌĂŶĚ ůŝŬĞƐŽĨDebenhams (DEB)
various directors) immediately ĂŶĚ,ŽƵƐĞŽĨ&ƌĂƐĞƌ͕ĨƌĂŶĐŚŝƐĞ
ďŽƵŐŚƚďĂĐŬƚŚĞŵĂũŽƌŝƚLJŽĨƚŚĞ stores, wholesale partners and
business. Eight years later Quiz ŝŶƚĞƌŶĂƟŽŶĂůŽŶůŝŶĞƉĂƌƚŶĞƌƐ
is in good health. including Zalando.
͚tĞƐĞĞŽƵƌƐĞůǀĞƐĂƐĂŶ KŶůŝŶĞŽŶůLJĂĐĐŽƵŶƚĞĚĨŽƌ
ŽŵŶŝͲĐŚĂŶŶĞůǀĞƌƐŝŽŶŽĨƚŚĞ ϭϯйŽĨůĂƐƚĮŶĂŶĐŝĂůLJĞĂƌ͛ƐƐĂůĞƐ
online pure plays that are out but there is rapid growth in this
ƚŚĞƌĞ͕͛ƐĂLJƐĐŚŝĞĨĐŽŵŵĞƌĐŝĂů channel.

QUIZ’s product development cycle and fast-fashion supply chain model
Styles & trends
Fabric sourcing &
ŝŶĚĞŶƟĮĞĚΘ
sampling process
developed
Source: Panmure Gordon/QUIZ
SPENDING MORE MONEY
ON MARKETING
:ƵůLJ͛ƐƐƚŽĐŬŵĂƌŬĞƚůŝƐƟŶŐ
ƌĂŬĞĚŝŶάϵ͘ϰŵŽĨŶĞǁŵŽŶĞLJ
ĂŌĞƌĨĞĞƐǁŚŝĐŚǁŝůůŚĞůƉYƵŝnj
ŐƌŽǁŝƚƐŵĂƌŬĞƚƉŽƐŝƟŽŶĂƚ
ŚŽŵĞĂŶĚŽǀĞƌƐĞĂƐ͘/ƚƉůĂŶƐƚŽ
ƐŝŐŶŝĮĐĂŶƚůLJŝŶĐƌĞĂƐĞŵĂƌŬĞƟŶŐ
spend to help accelerate
sales growth.
dŚĞŐƌŽǁƚŚƉŽƚĞŶƟĂůŝƐ
ĂƌŐƵĂďůLJŚƵŐĞĂƐYƵŝnj͛ƐƐŚĂƌĞ
ŽĨƚŚĞάϳ͘ϯďŶh<ǁŽŵĞŶƐǁĞĂƌ
value clothing sector alone is
ƐƟůůƟŶLJ͘
dŚĞάϮϮϬŵĐĂƉŚĂƐƐŝŐŶŝĮĐĂŶƚ
ŽŶůŝŶĞƉŽƚĞŶƟĂů͕ƌŝƐŝŶŐďƌĂŶĚ
awareness, helped by the UK
store presence and increasing
ŽŶůŝŶĞĂĐƟǀŝƚLJ͕ĂƐǁĞůůĂƐƚŚĞ
ǁĞůůͲŝŶǀĞƐƚĞĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞƚŽ
support planned growth.
Physical stores are important
ƚŽYƵŝnj͛ƐŽŵŶŝͲĐŚĂŶŶĞůŵŽĚĞů͖
ŝƚĐƵƌƌĞŶƚůLJƚƌĂĚĞƐĨƌŽŵϲϳ
standalone UK stores and
ƚŚĞƌĞ͛ƐůŽŶŐƚĞƌŵƉŽƚĞŶƟĂůĨŽƌ
a disciplined rollout to 110-120
ůŽĐĂƟŽŶƐ͘
Furthermore, it now has a
ŇĞdžŝďůĞƐƚŽƌĞĞƐƚĂƚĞĐĞŶƚƌĞĚ
on short leases, which limits
exposure to costly upward
rent reviews.
^ŚĞƌĂnjZĂŵnjĂŶƐĂLJƐ͚͗dŚĞ
ƐƚŽƌĞƐĂƌĞĂŶŝŵƉŽƌƚĂŶƚƉĂƌƚŽĨ
the strategy but the main drivers
ĂƌĞŽŶůŝŶĞĂŶĚŝŶƚĞƌŶĂƟŽŶĂů͛͘
dŚĞůĂƩĞƌĐŚĂŶŶĞůƐĂƌĞ
ƉƌĞƐĞŶƚůLJŐĞŶĞƌĂƟŶŐĐŽŵƉŽƵŶĚ
annual growth rates north
ŽĨϰϬй͘
Product Transport product
manufacturing
TEST AND REPEAT MODEL
YƵŝnjŚĂƐĂĚƵƌĂďůĞĐŽŵƉĞƟƟǀĞ
ĂĚǀĂŶƚĂŐĞŽǀĞƌŵĂŶLJŽĨŝƚƐƉĞĞƌƐ
thanks to the rapid speed by
which it can produce items to
ŵĞĞƚƚŚĞůĂƚĞƐƚĨĂƐŚŝŽŶƚƌĞŶĚƐ͘
/ƚƐƚĞƐƚĂŶĚƌĞƉĞĂƚŵŽĚĞůŝƐ
ƐŝŵŝůĂƌƚŽŽŽ,ŽŽ͛ƐŝŶƚŚĂƚďŽƚŚ
companies do a small amount
ŽĨŽƌĚĞƌƐƚŽŐĂƵŐĞĐƵƐƚŽŵĞƌ
demand and they only proceed
ǁŝƚŚůĂƌŐĞŽƌĚĞƌƐĨŽƌƚŚĞŵŽƐƚ
ƐƵĐĐĞƐƐĨƵůŝƚĞŵƐ͘
dŚŝƐŚĞůƉƐƚŽůŝŵŝƚƚŚĞƌŝƐŬŽĨ
having goods that are suddenly
ŽƵƚŽĨĨĂƐŚŝŽŶĂŶĚĂǀŽŝĚŚĂǀŝŶŐ
ůŽƚƐŽĨƵŶǁĂŶƚĞĚƐƚŽĐŬƚŚĂƚŚĂƐ
to be sold at a discount, thus
ŚƵƌƟŶŐƉƌŽĮƚŵĂƌŐŝŶƐ͘
Quiz achieves 62.7% gross
ŵĂƌŐŝŶĂŶĚϵ͘ϭй/d;ĞĂƌŶŝŶŐƐ
ďĞĨŽƌĞŝŶƚĞƌĞƐƚĂŶĚƚĂdžͿŵĂƌŐŝŶ͕
according to stockbroker
Panmure which has analysed a
ƌĂŶŐĞŽĨƌĞƚĂŝůĞƌƐ͛ůĂƚĞƐƚƌĞƉŽƌƚĞĚ
ĮŶĂŶĐŝĂůƌĞƐƵůƚƐ͘
/ŶĐŽŵƉĂƌŝƐŽŶ͕ŽŶůŝŶĞƌŝǀĂů
^K^ŚĂƐϱϬйŐƌŽƐƐŵĂƌŐŝŶĂŶĚ
ϰ͘ϰй/dŵĂƌŐŝŶ͖ĂŶĚƉŚLJƐŝĐĂů
store rival New Look has 51.3%
ŐƌŽƐƐŵĂƌŐŝŶĂŶĚϱ͘ϯй/d
margin.
FUTURE DIVIDEND PAYER
YƵŝnjŝƐĐĂƐŚŐĞŶĞƌĂƟǀĞǁŝƚŚ
an ungeared balance sheet
which not only supports growth
ĂŵďŝƟŽŶƐďƵƚĂůƐŽƉƌŽǀŝĚĞƐ
ƉƌŽƚĞĐƟŽŶƐŚŽƵůĚƚƌĂĚŝŶŐ
become tougher.
dŚĞĐŽŵƉĂŶLJ͛ƐƐŚĂƌĞƐŵĂLJ
interest income and growth
UNDER THE BONNET
Products allocated to
to QUIZ stores & online
investors alike as progressive
dividends are on the horizon.
͚tĞ͛ǀĞĂůǁĂLJƐďĞĞŶĚĞďƚ
ĂǀĞƌƐĞŽǀĞƌƚŚĞLJĞĂƌƐ͕͛ƐĂLJƐ
^ŚĞƌĂnjZĂŵnjĂŶ͚͘tĞ͛ǀĞĂůǁĂLJƐ
ǁĂŶƚĞĚƚŽďĞĂůĞĂŶ͕ĨĂƐƚͲŵŽǀŝŶŐ
ĐŽŵƉĂŶLJƚŚĂƚŝƐŇĞdžŝďůĞŝŶ
ĞǀĞƌLJĂƌĞĂ͛͘
dZ'd/E'&/sͳ&K>
INCREASE IN SALES
The company has outlined an
ŝŶŝƟĂůĂŵďŝƟŽŶƚŽďƵŝůĚĂάϱϬϬŵн
revenue brand in the medium
term and a global omni-channel
presence. To put that in context,
YƵŝnjŐĞŶĞƌĂƚĞĚάϴϵ͘ϴŵƐĂůĞƐŝŶ
the year to 31 March 2017.
Panmure Gordon analyst Peter
^ŵĞĚůĞLJĨŽƌĞĐĂƐƚƐƐĂůĞƐƚŽŚŝƚ
άϭϭϲ͘ϰŵŝŶƚŚĞLJĞĂƌƚŽDĂƌĐŚ
2018 and £150.5m in the year
ĂŌĞƌ͘dŚĂƚƚƌĂŶƐůĂƚĞƐŝŶƚŽƉƌĞͲ
ƚĂdžƉƌŽĮƚŽĨάϭϬ͘ϯŵŝŶϮϬϭϴĂŶĚ
άϭϮ͘ϲŵŝŶϮϬϭϵ͘
The shares at 178p currently
ƚƌĂĚĞŽŶϮϳ͘ϴƟŵĞƐĨŽƌĞĐĂƐƚ
ĞĂƌŶŝŶŐƐĨŽƌƚŚĞĐƵƌƌĞŶƚĮŶĂŶĐŝĂů
LJĞĂƌ͘dŚĂƚ͛ƐĂŚŝŐŚƌĂƟŶŐƚŽƌĞŇĞĐƚ
ŝƚƐĨĂƐƚŐƌŽǁƚŚƉŽƚĞŶƟĂůďƵƚ
nowhere near the 70.5 PE (price
ƚŽĞĂƌŶŝŶŐƐͿƌĂƟŽĨŽƌŽŽ,ŽŽĂŶĚ
ϳϴ͘ϲWƌĂƟŽĨŽƌ^K^͘
SHARES SAYS:
We acknowledge that retailers
are very much out of favour with
investors at present. That could
weigh on Quiz’s share price near
term. However, longer term this
certainly looks like an interesting
investment. (JC)
05 October 2017 | SHARES | 15
ŝŵƉŽƌƚĂŶƚĂŶĚƐŽŵĞƚŚŝŶŐƚŚĂƚŝƐŵŝƐƵŶĚĞƌƐƚŽŽĚ
ďLJŵĂŶLJŝŶǀĞƐƚŽƌƐ͘
ƐĂŶĞdžĂŵƉůĞ͕ůĞƚ͛ƐƐĂLJLJŽƵďƵLJĂƐƚŽĐŬĂƚϭϱϬƉ
ĂŶĚLJŽƵǁŽƵůĚůŝŬĞƚŽƐĞůůŝƚŝĨƚŚĞƉƌŝĐĞĚƌŽƉƐďLJ
ϭϬйĨƌŽŵƚŚĞƉŽŝŶƚŽĨƉƵƌĐŚĂƐĞ͘
zŽƵŝƐƐƵĞĂƐƚŽƉůŽƐƐŽƌĚĞƌĂƚϭϱϬƉŵŝŶƵƐϭϬй͕
ŽƌϭϯϱƉ͘/ĨƚŚĞƐŚĂƌĞƉƌŝĐĞƌĞĂĐŚĞƐϭϯϱƉ͕ƚŚĞƐƚŽƉ
loss triggers a market order to sell the shares at the
ŶĞdžƚĂǀĂŝůĂďůĞƉƌŝĐĞ͘
DŽƐƚŵŝĚĂŶĚůĂƌŐĞƐƚŽĐŬƐĂƌĞůŝƋƵŝĚĞŶŽƵŐŚ
ƚŽĂǀŽŝĚĚĞůĂLJƐŝŶĮŶĚŝŶŐĂďƵLJĞƌĨŽƌLJŽƵƌ
ŝŶǀĞƐƚŵĞŶƚ͘DŽƐƚŽĨƚŚĞƟŵĞ͕ƚŚĞƚƌĂĚĞƐŚŽƵůĚďĞ
ŝŶƐƚĂŶƚĂŶĞŽƵƐ͘^ŵĂůůĞƌĐŽŵƉĂŶŝĞƐĐĂŶďĞŵŽƌĞ
ŝůůŝƋƵŝĚƐŽLJŽƵŵĂLJĞŶĐŽƵŶƚĞƌƉĞƌŝŽĚƐǁŚĞŶLJŽƵ
ĐĂŶ͛ƚĞdžĞĐƵƚĞĂƐĞůůƚƌĂĚĞŽƌLJŽƵƌďƌŽŬĞƌĞŶĚƐƵƉ
ƐĞůůŝŶŐƚŚĞƐƚŽĐŬĂƚĂůŽǁĞƌƚŚĂŶĚĞƐŝƌĞĚƉƌŝĐĞ͘
THE PERILS OF PROFIT WARNINGS
dŚĞŽƚŚĞƌŝƐƐƵĞƚŽĐŽŶƐŝĚĞƌŝƐƚŚĂƚLJŽƵƌƐƚŽƉůŽƐƐ
ŵŝŐŚƚďĞƐĞƚĨĂƌŚŝŐŚĞƌƚŚĂŶƚŚĞƉƌŝĐĞĂƚǁŚŝĐŚĂ
ĐŽŵƉĂŶLJƐƚĂƌƚƐƚƌĂĚŝŶŐŽŶĂĚĂLJǁŚĞŶŝƚŝƐƐƵĞƐ
ǀĞƌLJďĂĚŶĞǁƐ͘
&ŽƌĞdžĂŵƉůĞ͕ƚŚĞĐŽŵƉĂŶLJŝŶŽƵƌƉƌĞǀŝŽƵƐ
ĞdžĂŵƉůĞŝƐƐƵĞƐĂƉƌŽĮƚǁĂƌŶŝŶŐĂŶĚŝƚƐƐŚĂƌĞƐ
ƉůƵŶŐĞϯϬйĂƚƚŚĞŵĂƌŬĞƚŽƉĞŶƚŽϭϬϱƉ͘zŽƵƌƐƚŽƉ
ůŽƐƐǁĂƐƐĞƚĂƚϭϯϱƉ͘
dŚĞĮƌƐƚŽƉƉŽƌƚƵŶŝƚLJLJŽƵƌďƌŽŬĞƌŚĂƐƚŽƐĞůůLJŽƵƌ
ƐŚĂƌĞƐŝƐϭϬϱƉ͖ŚĞŶĐĞLJŽƵǁŝůůĞdžŝƚƚŚĞƚƌĂĚĞĂƚĂ
ůŽǁĞƌƚŚĂŶĚĞƐŝƌĞĚůĞǀĞů͘
1100 FDM GROUP
1000 FTSE ALL SHARE
900
800
700 Shares says to buy at 539.5p
600
500
400
2015 2016
IS THERE SUCH A THING AS A GUARANTEED
STOP LOSS?
KŶĞƐŽůƵƟŽŶƚŽƚŚŝƐƉƌŽďůĞŵŝƐƚŽƵƐĞĂ
͚ŐƵĂƌĂŶƚĞĞĚƐƚŽƉůŽƐƐ͛ǁŚŝĐŚŐĞƚƐLJŽƵŽƵƚŽĨƚŚĞ
ƚƌĂĚĞĂƚƚŚĞĚĞƐŝƌĞĚƉƌŝĐĞ͘
dŚŝƐĨĂĐŝůŝƚLJŝƐŽŶůLJĂǀĂŝůĂďůĞƚŽƉĞŽƉůĞƚƌĂĚŝŶŐ
ƚŚĞŵĂƌŬĞƚƐǀŝĂĐŽŶƚƌĂĐƚƐĨŽƌĚŝīĞƌĞŶĐĞŽƌƐƉƌĞĂĚ
ďĞƫŶŐ͕ǁŚŝĐŚĂƌĞǀĞƌLJŚŝŐŚƌŝƐŬĂĐƟǀŝƟĞƐ͘dŽŐŝǀĞ
LJŽƵĂŶĞdžĂŵƉůĞŽĨƚŚĞĂƐƐŽĐŝĂƚĞĚĐŽƐƚƐ͕ƚƌĂĚŝŶŐ
ƉůĂƞŽƌŵƉƌŽǀŝĚĞƌ/'ƐĂLJƐŝƚĐŚĂƌŐĞƐϬ͘ϯйŽĨƚŚĞ
ƵŶĚĞƌůLJŝŶŐƚƌĂŶƐĂĐƟŽŶǀĂůƵĞŝŶŽƌĚĞƌƚŽŚĂǀĞĂ
ŐƵĂƌĂŶƚĞĞĚƐƚŽƉůŽƐƐ͘
ŶŽƚŚĞƌŝƐƐƵĞŵĂLJďĞĂƐŚŽƌƚͲƚĞƌŵŵĂƌŬĞƚ
ƐŚĂŬĞͲŽƵƚƚƌŝŐŐĞƌŝŶŐLJŽƵƌƐƚŽƉůŽƐƐ͕ŽŶůLJĨŽƌƚŚĞ
ƐŚĂƌĞƐƚŽƌĞĐŽǀĞƌLJŝŶƚŚĞƐƵďƐĞƋƵĞŶƚĚĂLJƐĂŶĚ
ǁĞĞŬƐ͘dŚĂƚůŽĐŬƐŝŶĂůŽƐƐƚŚĂƚŵŝŐŚƚŚĂǀĞďĞĞŶ
ƌŝĚĚĞŶŽƵƚŝŶƟŵĞ͘
/dĐŽŶƐƵůƚĂŶĐLJFDM (FDM)ŝƐĂĐůĂƐƐŝĐĞdžĂŵƉůĞ͘
/ŶDĂƌĐŚϮϬϭϲ͕ǁĞŇĂŐŐĞĚƚŚĞƐŚĂƌĞƐĂƚ
ϱϯϵ͘ϱƉ͘/Ŷ:ƵŶĞϮϬϭϲƚŚĞƌĞdžŝƚƌĞƐƵůƚƐƉĂƌŬĞĚ
ĂŵĂƐƐŝǀĞƐĞůůͲŽīŝŶƚŚĞƐŚĂƌĞƉƌŝĐĞ͕ĨĂůůŝŶŐ
ƚŽϰϯϮƉ͘
ŶLJŽŶĞǁŚŽďŽƵŐŚƚ&DĂƚϱϯϵ͘ϱƉĂŶĚŚĂĚ
ĂϭϬйƐƚŽƉůŽƐƐǁŽƵůĚŚĂǀĞŚĂĚĂƐĞůůŽƌĚĞƌ
ƚƌŝŐŐĞƌĞĚĂƚϰϴϱ͘ϱϱƉĂŶĚŵŝƐƐĞĚŽƵƚŽŶĂŶ
ŝŵƉƌĞƐƐŝǀĞĂŶĚƌĂƉŝĚƌĞĐŽǀĞƌLJ͘zĞƚŚĂůĨLJĞĂƌ
ƌĞƐƵůƚƐŝŶ:ƵůLJďŽůƐƚĞƌĞĚĐŽŶĮĚĞŶĐĞĂŶĚƚŚĞ
ƌĞĐŽǀĞƌLJĂĐĐĞůĞƌĂƚĞĚ͕ƚŚĞƐƚŽĐŬŚŝƫŶŐϲϱϰƉďLJ
ĞĂƌůLJƵŐƵƐƚ͘&DŚĂƐƐƵďƐĞƋƵĞŶƚůLJƌŝƐĞŶĨƵƌƚŚĞƌ͘
Recovery rally is sharp and fast
Brexit sparks plunge
2017
05 October 2017 | SHARES | 17
 Approximately 6,600 votes were cast by investors and financial
advisers for the best fund and investment trusts in a new set of
awards run by AJ Bell. We’re pleased to announce the winners.

“The AJ Bell Fund and Investment Trust (FIT) awards were born out of
an observation that there are an increasing number of people looking for
help and guidance when it comes to fund selection,’ says Andy Bell, chief
executive of AJ Bell.

‘Although past performance was not the primary focus, it is telling that the
portfolio of winners has doubled its money over the past five years. We
hope the winners list will be able to help people with their research and
encourage more people to engage in fund investing.’

CATEGORIES WINNERS 3 year 5 year Value of £1,000

annualised annualised invested 5 years
return return ago
UK Equity Liontrust Special Situations 12.55% 13.30% £1,867
Fund
European Equity Jupiter European Fund 19.51% 18.11% £2,298

North American Equity Schroder US Mid Cap Fund 19.34% 19.21% £2,407

Asian Equity Stewart Investors Asia Pacific 12.02% 12.12% £1,772

Leaders Fund
Japan Equity Baillie Gifford Shin Nippon PLC 32.62% 31.85% £3,984

Emerging Markets Equity JP Morgan Emerging Markets 14.77% 11.17% £1,698

Global Equity Fundsmith Equity Fund 25.20% 22.23% £2,782

UK Smaller Companies Standard Life UK Smaller 17.69% 17.60% £2,249

Companies Trust PLC
Commodoties/Resources BlackRock Gold and General 8.51% -3.37% £843
Fund
Technology/Biotech Polar Capital Global 28.27% 23.52% £2,875
Technology Fund
Property F&C Commercial Property 10.62% 12.95% £1,838
Trust
Bonds M&G Emerging Markets Bond 14.04% 9.78% £1,595
Fund
Income City of London Investment 8.33% 11.42% £1,717
Trust PLC
Ethical Kames Ethical Cautious 6.15% 9.09% £1,545
Managed Fund

Specialist First State Global Listed 17.79% 16.62% £2,158

Infrastructure Fund

Total return on £15,000 split equally across all funds: £31,628

 HOW TO INVEST IN THE ELECTRIC VEHICLE
REVOLUT ON
T
ŚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞ;sͿƌĞǀŽůƵƟŽŶŚĂƐŵŽǀĞĚ
ƵƉĂŐĞĂƌŽǀĞƌƚŚĞƉĂƐƚĨĞǁŵŽŶƚŚƐĂƐƌŝƚĂŝŶ
ĂŶĚ&ƌĂŶĐĞĐŽŶĮƌŵƉůĂŶƐƚŽƉŚĂƐĞŽƵƚƚŚĞ
ƐĂůĞŽĨĚŝĞƐĞůĂŶĚƉĞƚƌŽůĐĂƌƐďLJϮϬϰϬ͘
ĂƌŵĂŶƵĨĂĐƚƵƌĞƌƐƐƵĐŚĂƐsŽůǀŽĂŶĚ:ĂŐƵĂƌ
>ĂŶĚZŽǀĞƌĂƌĞĚĞǀĞůŽƉŝŶŐĞůĞĐƚƌŝĐŽƌŚLJďƌŝĚ
ǀĞŚŝĐůĞƐĂƐĨĂƐƚĂƐƚŚĞLJĐĂŶ͖ĂŶĚĞǀĞŶŶŽŶͲĐĂƌ
ĐŽŵƉĂŶŝĞƐŝŶĐůƵĚŝŶŐǀĂĐƵƵŵĐůĞĂŶĞƌƐƉĞĐŝĂůŝƐƚ
LJƐŽŶĂƌĞŵŽǀŝŶŐŝŶƚŽƚŚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐƉĂĐĞ͘
&ƵƌƚŚĞƌŵŽƌĞ͕ĂŝƌůŝŶĞEasyJet (EZJ)ŶŽǁƐĂLJƐŝƚĐŽƵůĚ
ďĞŇLJŝŶŐĞůĞĐƚƌŝĐƉůĂŶĞƐǁŝƚŚŝŶĂĚĞĐĂĚĞ͘
dŚŝƐƌĂƉŝĚĂĐĐĞůĞƌĂƟŽŶŽĨĂĐƟǀŝƚLJƉƌĞƐĞŶƚƐ
ĂŶŽƉƉŽƌƚƵŶŝƚLJĨŽƌŝŶǀĞƐƚŽƌƐƚŽŚŝƚĐŚĂƌŝĚĞŽŶ
ŽŶĞŽĨƚŚĞďŝŐŐĞƐƚŝŶĚƵƐƚƌŝĂůĂŶĚƚĞĐŚŶŽůŽŐŝĐĂů
20 | SHARES | 05 October 2017
ĚĞǀĞůŽƉŵĞŶƚƐŝŶƚŚĞǁŽƌůĚĨŽƌĂůŽŶŐƟŵĞ͘
/ŶƚŚŝƐĂƌƟĐůĞǁĞĚŝƐĐƵƐƐƚŚĞůŝŬĞůLJǁŝŶŶĞƌƐĂŶĚ
ůŽƐĞƌƐŽŶƚŚĞh<ƐƚŽĐŬŵĂƌŬĞƚĨƌŽŵƚŚĞĞůĞĐƚƌŝĐ
ǀĞŚŝĐůĞƌĞǀŽůƵƟŽŶ͕ĂƐǁĞůůĂƐůŽŽŬŝŶŐĂƚǁĂLJƐƚŽƉůĂLJ
ƚŚĞƐƉĂĐĞƚŚƌŽƵŐŚŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ͘
tĞǁŝůůůŽŽŬĂƚĂǁŝĚĞƌĂŶŐĞŽĨŝŶĚƵƐƚƌŝĞƐ͕ĨƌŽŵ
ĐĂƌƉĂƌƚƐƵƉƉůŝĞƌƐĂŶĚƐĞƌǀŝĐĞĐŽŵƉĂŶŝĞƐƚŽŵŝŶĞƌƐ
ŚŽƉŝŶŐƚŽĚŝŐƵƉƚŚĞƌĂǁŵĂƚĞƌŝĂůƐŶĞĞĚĞĚƚŽ
ƉŽǁĞƌĞůĞĐƚƌŝĐǀĞŚŝĐůĞďĂƩĞƌŝĞƐ͘
WHY IS THE WORLD MOVING
TO ELECTRIC VEHICLES?
dŚĞƌĞĂƌĞƐĞǀĞƌĂůƌĞĂƐŽŶƐǁŚLJƚŚĞǁŽƌůĚŝƐƐŚŝŌŝŶŐ
ĨƌŽŵĐŽŵďƵƐƟŽŶĞŶŐŝŶĞƐƚŽĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ͘
&ŝƌƐƚ͕ŝƚŚĂƐďĞĞŶƉƌŽǀĞŶƚŚĂƚĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐĐĂŶ
ƉĞƌĨŽƌŵĂƐǁĞůůĂƐƚŚĞŝƌƉĞƚƌŽůĞƋƵŝǀĂůĞŶƚƐ͘>ŝƚŚŝƵŵͲ
ŝŽŶďĂƩĞƌLJĐŽƐƚƐĂƌĞĨĂůůŝŶŐ͕ĂŶĚƚŚŝƐŚĂƐƉƌŽŵƉƚĞĚ
ƚŚĞĐĂƌŝŶĚƵƐƚƌLJƚŽďĞůŝĞǀĞƚŚĂƚĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐĐĂŶ
ĞǀĞŶƚƵĂůůLJďĞĐŽŵĞĂīŽƌĚĂďůĞƚŽƚŚĞŵĂƐƐŵĂƌŬĞƚ͘
 ^ĞĐŽŶĚ͕ĂŶƟͲƉŽůůƵƟŽŶůĞŐŝƐůĂƟŽŶŝŶŵĂŶLJƉĂƌƚƐ
ŽĨƚŚĞǁŽƌůĚŝƐĨŽƌĐŝŶŐƚŚĞĂƵƚŽŵŽƟǀĞŝŶĚƵƐƚƌLJ
ƚŽĐŚĂŶŐĞ͘ƵƌŽƉĞŝƐŝŶƚƌŽĚƵĐŝŶŐƐƚƌŝĐƚĞƌůŝŵŝƚƐŽŶ
ĐĂƌďŽŶĚŝŽdžŝĚĞĞŵŝƐƐŝŽŶƐĨƌŽŵϮϬϮϭ͕ĨŽƌĞdžĂŵƉůĞ͘
͚ŝƌƋƵĂůŝƚLJĐŽŶĐĞƌŶƐŚĂǀĞďĞĞŶĂďŝŐĚƌŝǀĞƌĨƌŽŵ
ĂůĞŐŝƐůĂƟǀĞƉŽŝŶƚŽĨǀŝĞǁ͕͛ƐĂLJƐDĂƌĐƵƐ^ƚĞǁĂƌƚ͕
ŚĞĂĚŽĨĞŶĞƌŐLJŝŶƐŝŐŚƚƐĂƚEĂƟŽŶĂů'ƌŝĚ;E'͘Ϳ͘
͚'ŽǀĞƌŶŵĞŶƚƐŚĂǀĞũƵŵƉĞĚŽŶƚŚĞďĂŶĚǁĂŐŽŶ͘
dĞĐŚŶŽůŽŐLJǁĂƐƚĂŬŝŶŐƵƐƚŚĞƌĞĂŶLJǁĂLJ͛͘
>ŝŬĞĂŶLJƐŝŐŶŝĮĐĂŶƚĚĞǀĞůŽƉŵĞŶƚ͕ƚŚĞƌĞĂƌĞĂ
ĨĞǁŶĞŐĂƟǀĞŝƐƐƵĞƐƚŽŽǀĞƌĐŽŵĞ͘zŽƵŚĂǀĞƚŽ
ƚŚŝŶŬĂďŽƵƚŚŽǁĞůĞĐƚƌŝĐŝƚLJŝƐŐĞŶĞƌĂƚĞĚŝŶŽƌĚĞƌ
ƚŽƉŽǁĞƌĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ͘WĂƌƚƐŽĨƚŚĞǁŽƌůĚĂƌĞ
ŚĞĂǀŝůLJƌĞůŝĂŶƚŽŶĐŽĂůͲĮƌĞĚƉŽǁĞƌƐƚĂƟŽŶƐƚŽ
ƉƌŽĚƵĐĞĞůĞĐƚƌŝĐŝƚLJ͕ƐŽƵƐŝŶŐƚŚĂƚƐŽƵƌĐĞƚŽƉŽǁĞƌ
ĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐŝƐĐůĞĂƌůLJĐŽƵŶƚĞƌŝŶƚƵŝƟǀĞĨƌŽŵĂŶ
ĞŶǀŝƌŽŶŵĞŶƚĂůƉĞƌƐƉĞĐƟǀĞ͘
zŽƵƚŚĞŶŚĂǀĞƚŽƚŚŝŶŬĂďŽƵƚŚŽǁǀĞŚŝĐůĞƐǁŝůů
ďĞĐŚĂƌŐĞĚ͘ƚƉƌĞƐĞŶƚƚŚĞƌĞĂƌĞǀĞƌLJĨĞǁĐŚĂƌŐŝŶŐ
ƐƚĂƟŽŶƐĨŽƌĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐŝŶŵĂũŽƌĐŝƟĞƐ͕ůĞƚ
ĂůŽŶĞƌƵƌĂůĂƌĞĂƐ͘&ŽƌĞdžĂŵƉůĞ͕ŚŝŶĂŚĂƐƐŽŵĞ
ĐŚĂƌŐŝŶŐƐƚĂƟŽŶƐŝŶĐĂƌƉĂƌŬƐďƵƚŽŶůLJŝŶĂƐŵĂůů
ĨƌĂĐƟŽŶŽĨŝƚƐŽǀĞƌĂůůƉĂƌŬŝŶŐĨĂĐŝůŝƟĞƐ͘
/ŶƚŚĞh<LJŽƵ͛ƌĞŵŽƌĞůŝŬĞůLJƚŽƐĞĞĐŚĂƌŐŝŶŐ
ƉŽŝŶƚƐŽŶƐŽŵĞŽŶĞ͛ƐŚŽƵƐĞƚŚĂŶŝŶĐŝƚLJĐĞŶƚƌĞƐ͘
DŽƌĞŽŶƚŚĞĐŚĂƌŐŝŶŐĚĞďĂƚĞůĂƚĞƌŝŶƚŚŝƐĂƌƟĐůĞ͘
&ŽƌŶŽǁ͕ůĞƚ͛ƐĚŝƐĐƵƐƐŚŽǁĐŽŵƉĂŶŝĞƐŽŶƚŚĞh<
ƐƚŽĐŬŵĂƌŬĞƚĮƚŝŶƚŽƚŚĞĞƋƵĂƟŽŶ͘

OUR TOP BUYS TO PLAY THE ELECTRIC

VEHICLE THEME
UK-LISTED STOCKS AND INVESTMENT TRUSTS SWITCHING FROM ANŝŶƚĞƌŶĂůĐŽŵďƵƐƟŽŶ
ĞŶŐŝŶĞǀĞŚŝĐůĞƚŽĂŶĞůĞĐƚƌŝĐǀĞŚŝĐůĞƌĞĚƵĐĞƐ
AB Dynamics Testing systems for motor industry
ƚŚĞĐŽƐƚƉĞƌŵŝůĞďLJϱϱйĨƌŽŵΨϬ͘ϴϴƉĞƌŵŝůĞ
Bacanora Minerals Near-term lithium producer
ƚŽΨϬ͘ϰϬƉĞƌŵŝůĞĨŽƌƚŚĞŽǁŶĞƌŽĨƚŚĞǀĞŚŝĐůĞ͕
Glencore Aluminium, cobalt and nickel producer ĂĐĐŽƌĚŝŶŐƚŽƌĞƐĞĂƌĐŚŐƌŽƵƉĚŝƐŽŶ͘
Johnson Matthey Battery technology developer ͚'ŝǀĞŶƚŚĂƚĂůŵŽƐƚĂůůŽĨƚŚĞĚƌŝǀĞƐŵĂĚĞ
Scottish Mortgage Its second largest holding is electric ĂƌĞĚŽŶĞƐŽĨŽƌĂƉƵƌƉŽƐĞ͕ǁĞƚŚŝŶŬƚŚĂƚƚŚĞ
Investment Trust vehicle pioneer Tesla ĞĐŽŶŽŵŝĐƐŽĨsƐĂƌĞůŝŬĞůLJƚŽǀĂƐƚůLJŽƵƚǁĞŝŐŚ
ĂŶLJůŝŶŐĞƌŝŶŐƉƌĞĨĞƌĞŶĐĞƐĨŽƌƚŚĞŽůĚƐƚLJůĞ
ŽĨǀĞŚŝĐůĞƐƌĞƐƵůƟŶŐŝŶĂŶĂůŵŽƐƚĐŽŵƉůĞƚĞ
OVERSEAS-LISTED STOCKS ĐŽŶǀĞƌƐŝŽŶŽĨƚŚĞŵĂƌŬĞƚŽŶĐĞsƐŚŝƚ
Infineon Large cap semiconductor manufacturer ĞĐŽŶŽŵŝĐƐĐĂůĞĂŶĚƚŚĞƌŝŐŚƚŝŶĨƌĂƐƚƌƵĐƚƵƌĞ
Technologies listed in Germany ŝƐŝŶƉůĂĐĞ͕͛ŝƚĂĚĚƐ͘
Albemarle Battery-grade lithium supplier listed
in the US

DO YOU THINK OF SLOW

MOVING MILK FLOATS THINK AGAIN.
AND GOLF BUGGIES WHEN TESLA’S MODEL S ELECTRIC
SOMEONE SAYS THE TERM VEHICLE CAN DO
‘ELECTRIC VEHICLE’? 0 TO 60 MILES PER HOUR
IN JUST
2.28 SECONDS

05 October 2017 | SHARES | 21

 VEHICLE MANUFACTURERS
dŚĞƌĞĂƌĞŶŽǀĞŚŝĐůĞŵĂŶƵĨĂĐƚƵƌĞƌƐŽŶƚŚĞh<
ƐƚŽĐŬŵĂƌŬĞƚ͘h<ŝŶǀĞƐƚŽƌƐǁŝůůŶĞĞĚƚŽďƵLJƐŚĂƌĞƐ
ŝŶŽǀĞƌƐĞĂƐͲůŝƐƚĞĚƐƚŽĐŬƐŝŶŽƌĚĞƌƚŽŚĂǀĞĞůĞĐƚƌŝĐ
ǀĞŚŝĐůĞŵĂŶƵĨĂĐƚƵƌĞƌƐŝŶƚŚĞŝƌƉŽƌƞŽůŝŽ͘dŚĞ
ĂůƚĞƌŶĂƟǀĞŝƐƚŽďƵLJĂŶŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚŽƌĨƵŶĚ
ǁŚŝĐŚŚĂƐƐƚĂŬĞƐŝŶƐŽŵĞŽĨƚŚĞƉůĂLJĞƌƐ͕ĂůƚŚŽƵŐŚ
LJŽƵǁŽƵůĚŚĂǀĞƚŽĐŽŶƐŝĚĞƌƚŚĞŵĂŶƵĨĂĐƚƵƌĞƌ;ƐͿ
ŵĂLJŽŶůLJďĞĂƐŵĂůůƉƌŽƉŽƌƟŽŶŽĨƚŚĞĨƵŶĚ͘
KƵƌƚŽƉƉŝĐŬŝŶƚŚŝƐƐŝƚƵĂƟŽŶŝƐƚŽďƵLJ^ĐŽƫƐŚ
DŽƌƚŐĂŐĞ/ŶǀĞƐƚŵĞŶƚdƌƵƐƚ;^DdͿ͘/ƚƐƐĞĐŽŶĚ
ůĂƌŐĞƐƚŚŽůĚŝŶŐŝƐdĞƐůĂ͕ƚŚĞŵĞƌŝĐĂŶĐŽŵƉĂŶLJ
ǁŚŝĐŚŝƐĐŽŶƐŝĚĞƌĞĚƚŽďĞŽŶĞŽĨƚŚĞƉŝŽŶĞĞƌƐŽĨ
ƚŚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞŝŶĚƵƐƚƌLJ͘
dĞƐůĂŚŽƉĞƐŝƚƐDŽĚĞůϯĐĂƌǁŝůůƉƵƐŚsƐŝŶƚŽ
ƚŚĞŵĂŝŶƐƚƌĞĂŵ͘DŽĚĞůϯŝƐĂůƌĞĂĚLJŽƵƚŝŶƚŚĞh^
;ŽŶĂƐŵĂůůƐĐĂůĞͿĂŶĚŝƐĞdžƉĞĐƚĞĚƚŽďĞƐŽůĚŝŶƚŚĞ
h<ĨƌŽŵϮϬϭϵ͘>ĂƚĞƌƚŚŝƐŵŽŶƚŚdĞƐůĂǁŝůůƵŶǀĞŝůĂŶ
ĞůĞĐƚƌŝĐŚĞĂǀLJͲĚƵƚLJŚĂƵůĂŐĞƚƌƵĐŬĐĂůůĞĚ^Ğŵŝ͘
VEHICLE PARTS AND
ASSOCIATED SERVICES
ůĞĐƚƌŝĐǀĞŚŝĐůĞƐĂƌĞĨĂƌůĞƐƐĐŽŵƉůĞdžŵĞĐŚĂŶŝĐĂůůLJ
ƚŚĂŶĐŽŵďƵƐƟŽŶĞŶŐŝŶĞǀĞŚŝĐůĞƐ͕ĂůƚŚŽƵŐŚ
ĞůĞĐƚƌŽŶŝĐĐŽŵƉůĞdžŝƚLJŝƐŚŝŐŚĞƌ͘/ŶĂŶƵƚƐŚĞůů͕ƚŚĞƌĞ
ĂƌĞĨĂƌĨĞǁĞƌďŝƚƐƚŽĚƌŝǀĞĂŶĞůĞĐƚƌŝĐǀĞŚŝĐůĞ͘&Žƌ
ĞdžĂŵƉůĞ͕ŝŶǀĞƐƚŵĞŶƚďĂŶŬh^ĐůĂŝŵƐƚŚĞƌĞĂƌĞ
ϮϰŵŽǀŝŶŐƉĂƌƚƐŝŶĞůĞĐƚƌŝĐǀĞŚŝĐůĞŚĞǀLJŽůƚ͛Ɛ
ƉŽǁĞƌƚƌĂŝŶǀĞƌƐƵƐϭϰϵŝŶƚŚĞst'ŽůĨ͘
h^ĂůƐŽďĞůŝĞǀĞƐĂŶĞůĞĐƚƌŝĐǀĞŚŝĐůĞůŝŬĞƚŚĞ
ŚĞǀLJŽůƚĐŽƵůĚĂůŵŽƐƚďĞŵĂŝŶƚĞŶĂŶĐĞͲĨƌĞĞ͚͘EŽƚ
ŽŶůLJĚŽĨĞǁĞƌƉĂƌƚƐŶĞĞĚƚŽďĞƌĞƉůĂĐĞĚŽǀĞƌƚŚĞ
ĐĂƌ͛ƐůŝĨĞ͕ŝƚĂůƐŽĚŽĞƐŶŽƚƌĞƋƵŝƌĞĂƌĞŐƵůĂƌĐŚĂŶŐĞ
ŽĨŇƵŝĚƐ͕ƐƵĐŚĂƐĞŶŐŝŶĞŽŝů͛͘
dŚĂƚ͛ƐǀĞƌLJŝŵƉŽƌƚĂŶƚ͘/ƚŝŵƉůŝĞƐĂƐŝŐŶŝĮĐĂŶƚ
ƌĞĚƵĐƟŽŶŝŶƌĞǀĞŶƵĞĨŽƌĐŽŵƉĂŶŝĞƐǁŚŝĐŚƉƌŽǀŝĚĞ
ƐƉĂƌĞƉĂƌƚƐŽƌŵĂŝŶƚĞŶĂŶĐĞƐĞƌǀŝĐĞƐ͘&ŽƌĞdžĂŵƉůĞ͕
ĐĂƌĚĞĂůĞƌƐŚŝƉƐƚLJƉŝĐĂůůLJŐĞŶĞƌĂƚĞŵŽƌĞƚŚĂŶϰϬй
“
INVESTMENT BANK UBS BELIEVES AN
ELECTRIC VEHICLE COULD ALMOST BE
MAINTENANCE-FREE. NOT ONLY DO FEWER
PARTS NEED TO BE REPLACED OVER THE CAR’S
LIFE, IT ALSO DOES NOT REQUIRE A REGULAR
CHANGE OF FLUIDS, SUCH AS ENGINE OIL
22 | SHARES | 05 October 2017
ŽĨƚŚĞŝƌŐƌŽƐƐƉƌŽĮƚŝŶƐĞƌǀŝĐĞĂŶĚŵĂŝŶƚĞŶĂŶĐĞ͘
ůĞĂƌůLJƐƵĐŚĂŶŝŵƉĂĐƚŝƐŶŽƚŐŽŝŶŐƚŽďĞĨĞůƚŝŶ
ƚŚĞŶĞdžƚĨĞǁLJĞĂƌƐ͕ďƵƚǁĞďĞůŝĞǀĞƚŚĞŵĂƌŬĞƚǁŝůů
ĞǀĞŶƚƵĂůůLJƐƚĂƌƚƚŽƉƌŝĐĞŝŶĂƚŽƵŐŚĞƌĨƵƚƵƌĞĨŽƌŶŽŶͲ
ǀĞŚŝĐůĞƐĂůĞƐŝŶĐŽŵĞĨŽƌĐĂƌĚĞĂůĞƌƐŚŝƉƐ͘
THE ENGINEERS
dǁŽƐƚŽĐŬƐĂůƌĞĂĚLJďĞŝŶŐƐĐƌƵƟŶŝƐĞĚďLJŝŶǀĞƐƚŽƌƐ
ĨŽƌŚŽǁƚŚĞLJǁŝůůĂĚĂƉƚŝŶĂŶsǁŽƌůĚĂƌĞ
ĂƵƚŽŵŽďŝůĞĞŶŐŝŶĞĞƌƐGKN (GKN) ĂŶĚZŝĐĂƌĚŽ
(RCDO)͘dŚĞĨŽƌŵĞƌƐƵƉƉůŝĞƐĚƌŝǀĞůŝŶĞƐƚŽĐĂƌ
ŵĂŶƵĨĂĐƚƵƌĞƌƐ͕ĞŶĂďůŝŶŐƉŽǁĞƌƚŽďĞĚĞůŝǀĞƌĞĚ
ĨƌŽŵƚŚĞĞŶŐŝŶĞƚŽƚŚĞǁŚĞĞůƐ͘ZŝĐĂƌĚŽƵŶĚĞƌƚĂŬĞƐ
ĂǁŝĚĞƌĂŶŐĞŽĨǁŽƌŬŝŶĐůƵĚŝŶŐĞŵŝƐƐŝŽŶƐƚĞƐƟŶŐ
ĨŽƌĐĂƌƐĂŶĚĞŶŐŝŶĞĚĞƐŝŐŶĂŶĚƚĞƐƟŶŐ͕ĂƐǁĞůůĂƐ
ǁŽƌŬŝŶƚŚĞƌĂŝůĂŶĚǁĂƚĞƌƐĞĐƚŽƌƐ͘
^ŚĂƌĞƐŝŶZŝĐĂƌĚŽǁĞŶƚƚŚƌŽƵŐŚĂůĞŶŐƚŚLJǁĞĂŬ
ƉĞƌŝŽĚĞĂƌůŝĞƌƚŚŝƐLJĞĂƌĂƐŝŶǀĞƐƚŽƌƐƐƚĂƌƚĞĚƚŽ
ƋƵĞƐƟŽŶŝĨsƉŽƐĞĚĂůŽŶŐĞƌͲƚĞƌŵƐƚƌƵĐƚƵƌĂů
ƚŚƌĞĂƚƚŽŝƚƐďƵƐŝŶĞƐƐ͕ŐŝǀĞŶŚĞĂǀLJĞdžƉŽƐƵƌĞƚŽƚŚĞ
ĐŽŵďƵƐƟŽŶĞŶŐŝŶĞ͘
ZŝĐĂƌĚŽďĞůŝĞǀĞƐƚŚĂƚĨƵůůƐĐĂůĞĞůĞĐƚƌŝĮĐĂƟŽŶǁŝůů
ŶŽƚŚĂƉƉĞŶďƵƚŝƚŝƐŶ͛ƚƐŝƫŶŐŽŶŝƚƐŚĂŶĚƐ͚͘dŚĞƌĞ
ŝƐĂůŽƚŽĨŝŶǀĞƐƚĞĚĐĂƉŝƚĂůŝŶĞŶŐŝŶĞƐĂƌŽƵŶĚƚŚĞ
ǁŽƌůĚ͕͛ƐĂLJƐZŝĐĂƌĚŽ͚͘ĂƌŵĂŶƵĨĂĐƚƵƌĞƌƐƐƟůůŶĞĞĚ
ƚŽƉƌŽĚƵĐĞĞdžĐĞůůĞŶƚĞŶŐŝŶĞƐǁŝƚŚůŽǁĞŵŝƐƐŝŽŶƐ͘
ƵƚŝŶĂǁŽƌƐƚĐĂƐĞƐĐĞŶĂƌŝŽǁĞǁŽƵůĚũƵƐƚĚŽs
ĂŶĚŚLJďƌŝĚǁŽƌŬǁŚŝĐŚƌĞƉƌĞƐĞŶƚĞĚϭϳйŽĨŽƵƌ
ŽƌĚĞƌŝŶƚĂŬĞŝŶƚŚĞůĂƐƚĮŶĂŶĐŝĂůLJĞĂƌ͘
͚tĞ͛ǀĞĚŽŶĞsǁŽƌŬƐŝŶĐĞϮϬϬϬĂŶĚŚĂǀĞ
ŐƌŽǁŝŶŐĞdžƉĞƌƟƐĞ͕͛ĂĚĚƐƚŚĞĐŽŵƉĂŶLJ͚͘KŶƚŚĞ
ŚLJĚƌŽŐĞŶƐŝĚĞ͕ǁĞĂƌĞǁŽƌŬŝŶŐǁŝƚŚdŽLJŽƚĂŽŶĂ
ŚLJĚƌŽŐĞŶƚƌƵĐŬĂŶĚǁĞĂůƐŽĚĞƐŝŐŶďĂƩĞƌLJƉĂĐŬƐ͛͘
ZŝĐĂƌĚŽƐĂLJƐŝƚŚĂƐďĞĞŶƚĂůŬŝŶŐƚŽƵŶŶĂŵĞĚ
ƉĂƌƟĞƐĂďŽƵƚƉŽƚĞŶƟĂůůLJďĞĐŽŵŝŶŐĂŶĞůĞĐƚƌŝĐ
ǀĞŚŝĐůĞďĂƩĞƌLJŵĂŶƵĨĂĐƚƵƌĞƌ͘
SHOULD YOU BUY SHARES IN RICARDO?
/ŶǀĞƐƚŵĞŶƚďĂŶŬĞƌĞŶďĞƌŐƌĂƚĞƐZŝĐĂƌĚŽĂƐ
Ă͚ƐĞůů͛ĂŶĚƐĂLJƐƚŚĞƌĞŝƐĂůŽƚǁƌŽŶŐǁŝƚŚƚŚĞ
ďƵƐŝŶĞƐƐďĞLJŽŶĚƚŚĞsŵĂƌŬĞƚƚŚƌĞĂƚŝŶĐůƵĚŝŶŐ
ĚĞƚĞƌŝŽƌĂƟŶŐĐĂƐŚŐĞŶĞƌĂƟŽŶ͘/ŶĐŽŶƚƌĂƐƚ͕
ŝŶǀĞƐƚŵĞŶƚďĂŶŬ>ŝďĞƌƵŵƚĂŬĞƐĂĚŝīĞƌĞŶƚ
ǀŝĞǁ͕ƐĂLJŝŶŐ͚ĂƵƚŽĞǀŽůƵƟŽŶŝƐŵŽƌĞŽƉƉŽƌƚƵŶŝƚLJ
ƚŚĂŶƚŚƌĞĂƚ͛ĨŽƌZŝĐĂƌĚŽĂŶĚƚŚĂƚŝƚƐƐŚĂƌĞƐĂƌĞ
ǁŽƌƚŚďƵLJŝŶŐ͘
͚WƌŽũĞĐƟŽŶƐƐƵŐŐĞƐƚƚŚĂƚϯϬйŽĨĂůůŶĞǁƉĂƐƐĞŶŐĞƌ
ĐĂƌƐǁŝůůŚĂǀĞĞůĞĐƚƌŝĐƉŽǁĞƌƚƌĂŝŶƐďLJϮϬϮϱ;ŚLJďƌŝĚƐ
ĂŶĚsƐͿ͕͛ƐĂLJƐ>ŝďĞƌƵŵĂŶĂůLJƐƚĞŶŽƵƌŶĞ͚͘ZŝĐĂƌĚŽ
ŚĂƐƐĞĐƵƌĞĚĂĚŝǀĞƌƐŝĮĞĚƌĂŶŐĞŽĨƉƌŽŐƌĂŵŵĞƐ
ŝŶǀĞŚŝĐůĞƐLJƐƚĞŵƐ͕ŚLJďƌŝĚĂŶĚĞůĞĐƚƌŝĐƐLJƐƚĞŵƐ͕
ĂĚǀĂŶĐĞĚĚƌŝǀĞůŝŶĞ͕ĂŶĚŝŶƚŚĞĐŽƌĞƉŽǁĞƌƚƌĂŝŶ
ĂƌĞĂƐ͕ĨŽĐƵƐĞĚŽŶďŽƚŚŶĞǁĂŶĚĞdžŝƐƟŶŐƉƌŽĚƵĐƚ
ƵƉŐƌĂĚĞƐƚŽŚĞůƉůŽǁĞƌKϮĂŶĚEKϮĞŵŝƐƐŝŽŶƐ͛͘
ƐĨŽƌ'<E͕h^ĞƐƟŵĂƚĞƐƚŚĂƚϭϱйƚŽϮϬйŽĨŝƚƐ
ƉƌŽĮƚƐƚŽĚĂLJĐŽƵůĚďĞĂƚƌŝƐŬŝŶĂŶĂůůͲŚLJďƌŝĚͬĞůĞĐƚƌŝĐ
ǁŽƌůĚ͘'<EŝƐĂĚĂƉƟŶŐ͕ŶŽŶĞƚŚĞůĞƐƐ͕ŝŶĐůƵĚŝŶŐƚŚĞ
ƌĞĐĞŶƚůĂƵŶĐŚŽĨĂŶĂĚǀĂŶĐĞĚĞůĞĐƚƌŝĐĚƌŝǀĞůŝŶĞ
ǁŚŝĐŚŝƚĐůĂŝŵƐǁŝůůĚĞůŝǀĞƌ͚ƵŶƌŝǀĂůůĞĚĐĂƉĂďŝůŝƟĞƐ͛
ĨŽƌƚŚĞŶĞdžƚŐĞŶĞƌĂƟŽŶŽĨĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ͘
GOOD NEWS FOR AB DYNAMICS
KŶĞůĞƐƐĞƌŬŶŽǁŶĞŶŐŝŶĞĞƌĂůƌĞĂĚLJďĞŶĞĮƟŶŐ
ĨƌŽŵƚŚĞĂĚǀĞŶƚŽĨĞůĞĐƚƌŝĐǀĞŚŝĐůĞĚĞǀĞůŽƉŵĞŶƚŝƐ
LJŶĂŵŝĐƐ;W͗/DͿǁŚŝĐŚƵŶĚĞƌƚĂŬĞƐƚƌĂĐŬ
ƚƌŝĂůƐĨŽƌǀĞŚŝĐůĞƐƚĞĞƌŝŶŐĂŶĚƐƵƐƉĞŶƐŝŽŶ͕ĂƐǁĞůů
ĂƐƉƌŽǀŝĚŝŶŐĚƌŝǀŝŶŐƌŽďŽƚƐLJƐƚĞŵƐƚŽƚĞƐƚǀĞŚŝĐůĞƐ
ŝŶĐƌĂƐŚƐĐĞŶĂƌŝŽƐ͘^ǁŝƚĐŚŝŶŐƚŽĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ
RICARDO HAS SECURED A DIVERSIFIED RANGE OF
PROGRAMMES IN VEHICLE SYSTEMS, HYBRID AND
ELECTRIC SYSTEMS, ADVANCED DRIVELINE, AND IN
THE CORE POWERTRAIN AREAS, FOCUSED ON BOTH
NEW AND EXISTING PRODUCT UPGRADES TO HELP
LOWER CO2 AND NO2 EMISSIONS.
WHAT ABOUT HYDROGEN POWER?
ŽŶ͛ƚǁƌŝƚĞŽīŚLJĚƌŽŐĞŶƉŽǁĞƌĂƐĂŶĂůƚĞƌŶĂƟǀĞ
ƉŽǁĞƌƐŽƵƌĐĞ͘tŚŝůĞŝƚŵĂLJďĞŐĞƫŶŐƐŝĚĞůŝŶĞĚ
ŝŶƚĞƌŵƐŽĨƉƵďůŝĐŝƚLJǀĞƌƐƵƐĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ͕
ĚĞǀĞůŽƉŵĞŶƚƐĂƌĞƐƟůůŽŶŐŽŝŶŐƐƵĐŚĂƐŝŶƚŚĞďƵƐ
ŝŶĚƵƐƚƌLJ͘/dDWŽǁĞƌ;/dD͗/DͿŝƐƚŚĞǁĂLJĨŽƌh<
ŝŶǀĞƐƚŽƌƐƚŽƉůĂLJƚŚĞŚLJĚƌŽŐĞŶƉŽǁĞƌƐĞĐƚŽƌ͘
ĚŽĞƐŶ͛ƚĐŚĂŶŐĞŚŽǁŝƚƐƌŽďŽƚƐǁŽƌŬĂƐƚŚĞLJƐŝƚŽŶ
ƚŚĞƐƚĞĞƌŝŶŐǁŚĞĞů͕ŶŽƚƚŚĞĞŶŐŝŶĞ͘
͚ůŽƚŽĨĐĂƌĐŽŵƉĂŶŝĞƐĂƌĞƚƌLJŝŶŐƚŽĂĚĂƉƚ
ƚŚĞŝƌĂƌĐŚŝƚĞĐƚƵƌĞƚŽĂĐĐĞůĞƌĂƚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞ
ĚĞǀĞůŽƉŵĞŶƚ͕͛ƐĂLJƐĐŚŝĞĨĞdžĞĐƵƟǀĞdŝŵZŽŐĞƌƐ͘
͚dŚĞLJĂƌĞĚŽŝŶŐĂůŽƚŽĨĐŚĂƐƐŝƐĚĞǀĞůŽƉŵĞŶƚǁŚŝĐŚ
ĚƌŝǀĞƐŝŶƉĂƌƚǁŚĂƚǁĞĚŽ͘
͚tĞĂƌĞƐĞĞŝŶŐŵŽƌĞǀŝƌƚƵĂůƐŝŵƵůĂƚĞĚ
ĚĞǀĞůŽƉŵĞŶƚĂŶĚůĞƐƐƉƌŽƚŽƚLJƉŝŶŐ͕͛ĂĚĚƐZŽŐĞƌƐ͘
dŚĂƚƐŚŽƵůĚŶ͛ƚďĞĂƉƌŽďůĞŵĨŽƌLJŶĂŵŝĐƐ
ďĞĐĂƵƐĞŝƚŚĂƐƌĞĐĞŶƚůLJĚĞǀĞůŽƉĞĚĂĚǀĂŶĐĞĚ
ĚƌŝǀŝŶŐƐŝŵƵůĂƚŽƌƐƉƌŽĚƵĐĞĚŝŶƉĂƌƚŶĞƌƐŚŝƉǁŝƚŚ
tŝůůŝĂŵƐ&ϭ͘dŚĞƐĞĞŶĂďůĞĂƵƚŽŵŽƟǀĞĐƵƐƚŽŵĞƌƐ
ƚŽƵŶĚĞƌƚĂŬĞǀĞŚŝĐůĞĚLJŶĂŵŝĐƐŵŽĚĞůůŝŶŐĂŶĚ
ĞǀĂůƵĂƟŽŶŽĨ^;ĚƌŝǀĞƌĂƐƐŝƐƚĂŶĐĞͿƚĞĐŚŶŽůŽŐLJ͘
ŽƚŚLJŶĂŵŝĐƐĂŶĚZŝĐĂƌĚŽŵĂŬĞƚŚĞƉŽŝŶƚ
ƚŚĂƚĐĂƌŵĂŶƵĨĂĐƚƵƌĞƌƐĂƌĞƐƟůůƐƉĞŶĚŝŶŐĂůŽƚŽĨ
ŵŽŶĞLJŽŶĐŽŵďƵƐƟŽŶĞŶŐŝŶĞǀĞŚŝĐůĞƐĂŶĚƚŚĂƚ
ƉĂƌƚŽĨƚŚĞŝŶĚƵƐƚƌLJŝƐŶŽƚŐŽŝŶŐƚŽĚŝƐĂƉƉĞĂƌ
ŽǀĞƌŶŝŐŚƚ͘
05 October 2017 | SHARES | 23
 THE CHEMICAL COMPANY
&d^ϭϬϬĐŚĞŵŝĐĂůƐŐŝĂŶƚ:ŽŚŶƐŽŶDĂƩŚĞLJ
(JMAT) ƐĂǁŝƚƐƐŚĂƌĞƉƌŝĐĞũƵŵƉďĂĐŬƚŽůŝĨĞůĂƐƚ
ŵŽŶƚŚĂŌĞƌĞdžƉůĂŝŶŝŶŐŚŽǁŝƚŚŽƉĞƐƚŽĐƌĂĐŬƚŚĞ
sŵĂƌŬĞƚ͘tĞƚŚŝŶŬŝƚŝƐĂŶĞƐƐĞŶƟĂůƐƚŽĐŬƚŽ
ŽǁŶĨŽƌƚŚĞsƌĞǀŽůƵƟŽŶ͘
/ŶǀĞƐƚŽƌƐŚĂĚƉƌĞǀŝŽƵƐůLJǁŽƌƌŝĞĚĂďŽƵƚƚŚĞ
ĐŽŵƉĂŶLJ͛ƐƉŽƐŝƟŽŶŐŝǀĞŶŝƚŚĂƐŚŝƐƚŽƌŝĐĂůůLJŐĞŶĞƌĂƚĞĚ
ĂůŽƚŽĨŵŽŶĞLJĨƌŽŵŵĂŬŝŶŐĐĂƚĂůLJƟĐĐŽŶǀĞƌƚĞƌƐ
ƚŽĐŽŶƚƌŽůŚĂƌŵĨƵůƉŽůůƵƚĂŶƚĞŵŝƐƐŝŽŶƐĨƌŽŵĚŝĞƐĞů
ǀĞŚŝĐůĞƐǁŚŝĐŚŝƐŶŽǁĂŵĂƌŬĞƚƵŶĚĞƌƚŚƌĞĂƚ͘
dŚĂƚ͛ƐǁŚLJƚŚĞĐŽŵƉĂŶLJŚĂƐďĞĞŶƚƌLJŝŶŐƚŽ
ĞdžƉĂŶĚŝŶƚŽďĂƩĞƌLJƚĞĐŚŶŽůŽŐLJ͘:ŽŚŶƐŽŶDĂƩŚĞLJ
ŚĂƐŶŽǁƵŶǀĞŝůĞĚŝƚƐĞ>EK;ĞŶŚĂŶĐĞĚůŝƚŚŝƵŵŶŝĐŬĞů
ŽdžŝĚĞͿĐĂƚŚŽĚĞŵĂƚĞƌŝĂůǁŚŝĐŚŝƚĐůĂŝŵƐƚŽŽīĞƌ
ŚŝŐŚĞƌĞŶĞƌŐLJĚĞŶƐŝƚLJĂŶĚƌĞƋƵŝƌĞůĞƐƐĐŽďĂůƚƌĞůĂƟǀĞ
ƚŽĐƵƌƌĞŶƚŵĂƌŬĞƚůĞĂĚŝŶŐĐĂƚŚŽĚĞŵĂƚĞƌŝĂůƐ͘
dŚĞƌĞĚƵĐƟŽŶŝŶĐŽďĂůƚĐŽƵůĚďĞŽŶĞŽĨƚŚĞŵŽƐƚ
ŝŵƉŽƌƚĂŶƚĨĂĐƚŽƌƐ͘ƐǁĞĚŝƐĐƵƐƐůĂƚĞƌŝŶƚŚŝƐĂƌƟĐůĞ͕
ĐŽďĂůƚŝƐŽŶĞŽĨƚŚĞĐŽŵŵŽĚŝƟĞƐĞdžƉĞĐƚĞĚƚŽƐŚŽŽƚ
ƵƉŝŶƉƌŝĐĞĂƐĚĞŵĂŶĚŝƐĞdžƉĞĐƚĞĚƚŽƐŝŐŶŝĮĐĂŶƚůLJ
ŽƵƚǁĞŝŐŚƐƵƉƉůLJ͘^ŽďĂƩĞƌLJƚĞĐŚŶŽůŽŐLJƚŚĂƚ
ƌĞƋƵŝƌĞƐůĞƐƐĐŽďĂůƚŝƐĂƉůƵƐĨĂĐƚŽƌĨŽƌĐĂƌ
ĐŽŵƉĂŶŝĞƐ͘
͚tĞĞdžƉĞĐƚƚŚĂƚŶĞĂƌƚĞƌŵ͕ŝŶǀĞƐƚŽƌƐǁŝůůďĞ
ĨŽĐƵƐĞĚŽŶƚŚĞŵĞƌŝƚƐŽĨ:D͛ƐŶĞǁĐĂƚŚŽĚĞ
ŵĂƚĞƌŝĂůŝŶƚĞƌŵƐŽĨ;ϭͿǁŚĂƚǀĂůƵĞƐŚŽƵůĚďĞ
ĂƐĐƌŝďĞĚ͕ĂŶĚ;ϮͿŚŽǁůĂƌŐĞƚŚĞŵĂƌŬĞƚŽƉƉŽƌƚƵŶŝƚLJ
ĐŽƵůĚďĞƐŚŽƵůĚƚŚŝƐŶĞǁƚĞĐŚŶŽůŽŐLJƉƌŽǀĞƚŽ
ĚĞůŝǀĞƌĂƐƚĞƉĐŚĂŶŐĞ͕͛ƐĂLJƐŝŶǀĞƐƚŵĞŶƚďĂŶŬ
DŽƌŐĂŶ^ƚĂŶůĞLJ͘
͚,ŽǁĞǀĞƌ͕ŝƚŝƐŝŵƉŽƌƚĂŶƚƚŽĂĐŬŶŽǁůĞĚŐĞ
ƚŚĞƌĞŝƐƐƟůůĨƵƌƚŚĞƌƉƌŽŐƌĞƐƐƚŽďĞŵĂĚĞƚŽ
ƐĞĐƵƌĞĐƵƐƚŽŵĞƌĐŽŶƚƌĂĐƚƐ͕ĂŶĚƚŚĞŶƐĐĂůĞƵƉƚŚĞ
ŶĞĐĞƐƐĂƌLJĐĂƉĂĐŝƚLJ͘KŶĞƚŚŝŶŐŝƐĐůĞĂƌ͕ƉĞƌĐĞƉƟŽŶ
ŝƐĐŚĂŶŐŝŶŐŝŶƌĞŐĂƌĚƐƚŽ:D͛ƐĂďŝůŝƚLJƚŽĐĂƌǀĞŽƵƚĂ
ŵĂƌŬĞƚƉŽƐŝƟŽŶŝŶƚŚĞŚŝŐŚŐƌŽǁƚŚsƐƵƉƉůLJĐŚĂŝŶ
ĂƐƚŚĞƉŽǁĞƌƚƌĂŝŶĞǀŽůǀĞƐ͛͘
Barriers to EV Range
Charging
Cost
24 | SHARES | 05 October 2017
POWER TRANSMISSION
AND CHARGING
KŶĞŽĨƚŚĞŬĞLJĐŚĂůůĞŶŐĞƐƚŽŝŶĐƌĞĂƐŝŶŐ
ĞůĞĐƚƌŝĐǀĞŚŝĐůĞĂĚŽƉƟŽŶŝƐŚĂǀŝŶŐĂĚĞƋƵĂƚĞ
ĐŚĂƌŐŝŶŐŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ŽŶǀĞƌƟŶŐƉĞƚƌŽůƐƚĂƟŽŶƐ
ŵĂLJŶŽƚďĞƚŚĞƐŽůƵƟŽŶĂƐLJŽƵĐĂŶ͛ƚĐŚĂƌŐĞĂĐĂƌĂƚ
ƚŚĞƐĂŵĞƐƉĞĞĚŝŶǁŚŝĐŚLJŽƵĮůůƵƉƚŚĞƉĞƚƌŽůƚĂŶŬ͘
While ZŽLJĂůƵƚĐŚ^ŚĞůů;Z^ͿŝƐǁŽƌŬŝŶŐŽŶ
ƐLJƐƚĞŵƐƚŽƉƌŽǀŝĚĞĨĂƐƚͲĐŚĂƌŐŝŶŐĨŽƌsƐĂƚŝƚƐƉĞƚƌŽů
ƐƚĂƟŽŶƐ͕ǁĞĚŽƵďƚŝƚǁŽƵůĚďĞĂďůĞƚŽĐŚĂƌŐĞĂŶ
ĞůĞĐƚƌŝĐǀĞŚŝĐůĞŝŶƚǁŽŵŝŶƵƚĞƐ͘
^ƉĞĂŬŝŶŐĂƚĂƌĞĐĞŶƚĐŽŶĨĞƌĞŶĐĞŚĞůĚďLJƚŚĞ
EĂƚƵƌĂůZĞƐŽƵƌĐĞƐ&ŽƌƵŵ͕ĐŚŝĞĨĞdžĞĐƵƟǀĞƌŝŬ
&ĂŝƌďĂŝƌŶŽĨĞůĞĐƚƌŝĐĐŚĂƌŐĞƉŽŝŶƚƐƵƉƉůŝĞƌWKWŽŝŶƚ
ƉƌĞĚŝĐƚĞĚƚŚĞĨƵƚƵƌĞǁŽƵůĚďĞϲϬйŽĨĐŚĂƌŐŝŶŐ
ĚŽŶĞĂƚŚŽŵĞ͕ϯϬйĂƚǁŽƌŬ͕ϳйĂƚĚĞƐƟŶĂƟŽŶĂŶĚ
ϯйĞŶͲƌŽƵƚĞ͘
EĂƟŽŶĂů'ƌŝĚ͛ƐDĂƌĐƵƐ^ƚĞǁĂƌƚƐĂLJƐĂŶĞůĞĐƚƌŝĐ
ǀĞŚŝĐůĞŝƐũƵƐƚĂ͚ďĂƩĞƌLJŽŶǁŚĞĞůƐ͛͘ƐƐƵĐŚ͕ŝƚĐŽƵůĚ
ďĞƵƐĞĚƚŽƉƌŽǀŝĚĞĞŶĞƌŐLJĂƐǁĞůůĂƐĐŽŶƐƵŵĞŝƚ͘
͚tĞĂƌĞƚĂŬŝŶŐƚŽŵĂŶƵĨĂĐƚƵƌĞƌƐ͕ůŽŽŬŝŶŐĂƚŚŽǁ
LJŽƵƌĐĂƌĐŽƵůĚƉƌŽǀŝĚĞĞŶĞƌŐLJďĂĐŬƚŽƚŚĞŐƌŝĚ͕ƐƵĐŚ
ĂƐǁŚĞŶLJŽƵĂƌĞŶ͛ƚƵƐŝŶŐŝƚ͛͘
/ŶǀĞƐƟŶŐŝŶĂĐŽŵƉĂŶLJŝŶǀŽůǀĞĚŝŶƐĞƫŶŐƵƉ
ƚŚĞĐŚĂƌŐŝŶŐŝŶĨƌĂƐƚƌƵĐƚƵƌĞǁŽƵůĚďĞĂŶŽďǀŝŽƵƐ
ǁĂLJƚŽƉůĂLJƚŚĞĞůĞĐƚƌŝĐĐĂƌƚŚĞŵĞ͘tĞĐĂŶ͛ƚƐĞĞ
ĂŶLJŽďǀŝŽƵƐĐŽŶƚĞŶĚĞƌƐŽŶƚŚĞh<ŵĂƌŬĞƚĂƚƚŚĞ
ŵŽŵĞŶƚ͕ĂůƚŚŽƵŐŚƚŚĞƌĞĂƌĞƚǁŽƐƚŽĐŬƐǁŚŝĐŚŚĂǀĞ
ƌĞůĞǀĂŶƚŝŶƚĞƌĞƐƚƐŽŶĂƐŵĂůůƐĐĂůĞ͘
“ ”
AN ELECTRIC VEHICLE IS A JUST
A ‘BATTERY ON WHEELS’
Performance
Choice ^ŽƵƌĐĞ͗WKWŽŝŶƚ
 ŶŐŝŶĞĞƌŝŶŐƐĞƌǀŝĐĞƐŐƌŽƵƉEĞdžƵƐ/ŶĨƌĂƐƚƌƵĐƚƵƌĞ
;Ey^͗/DͿŵĂŬĞƐŵŽƐƚŽĨŝƚƐŵŽŶĞLJĨƌŽŵ
ŚŽŽŬŝŶŐƵƉŶĞǁͲďƵŝůĚƉƌŽƉĞƌƟĞƐƚŽĞůĞĐƚƌŝĐŝƚLJ͕
ǁĂƚĞƌĂŶĚĚƌĂŝŶĂŐĞƐĞƌǀŝĐĞƐĂƐǁĞůůĂƐďƵŝůĚŝŶŐ
ƌĞŝŶĨŽƌĐĞĚĐŽŶĐƌĞƚĞĨƌĂŵĞƐĂŶĚƌŽĂĚƐ͘/ƚŝƐĂůƐŽ
ƚƌLJŝŶŐƚŽĚĞǀĞůŽƉƐĞƌǀŝĐĞƐĂƌŽƵŶĚĞůĞĐƚƌŝĐǀĞŚŝĐůĞ
ĐŚĂƌŐŝŶŐƉŽŝŶƚƐ͘
/DͲƋƵŽƚĞĚǀĞŶƚƵƌĞĐĂƉŝƚĂůĮƌŵƌĂƉĞƌƐƉƌŝƚ
;'ZKt͗/DͿŚĂƐĂƐƚĂŬĞŝŶWKWŽŝŶƚ͕ĂůƚŚŽƵŐŚ
ŝƚŝƐŽŶůLJĂƐŵĂůůƉĂƌƚŽĨŝƚƐŽǀĞƌĂůůŝŶǀĞƐƚŵĞŶƚ
ƉŽƌƞŽůŝŽ͘WKWŽŝŶƚŚĂƐŵĂĚĞĂŶĚƐŽůĚŵŽƌĞƚŚĂŶ
Ϯϳ͕ϬϬϬĐŚĂƌŐŝŶŐƉŽŝŶƚƐƐŝŶĐĞďĞŝŶŐĨŽƵŶĚĞĚŝŶ
ϮϬϬϵ͕ĂĐĐŽƌĚŝŶŐƚŽƌĂƉĞƌ͘
BATTERY RAW MATERIALS
>ŝƚŚŝƵŵŝƐŽŌĞŶƚŽƵƚĞĚĂƐƚŚĞŵĂŐŝĐĐŽŵŵŽĚŝƚLJƚŽ
ƉůĂLJƚŚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞƌĞǀŽůƵƟŽŶŐŝǀĞŶŝƚƐƌŽůĞĂƐ
ĂŬĞLJďĂƩĞƌLJĐŽŵƉŽŶĞŶƚ͘/ŶƌĞĂůŝƚLJ͕ŶŝĐŬĞůŵŝŐŚƚ
ďĞƚŚĞďĞƩĞƌĐŽŵŵŽĚŝƚLJƚŽƐĞĞŬǁŚĞŶůŽŽŬŝŶŐĂƚ
ŵŝŶŝŶŐƐƚŽĐŬƐůŝŶŬĞĚƚŽƚŚĞsƌĞǀŽůƵƟŽŶ͘
dŚĞƌĞŝƐƉůĞŶƚLJŽĨůŝƚŚŝƵŵŝŶƚŚĞǁŽƌůĚĂŶĚ
ĞdžƉĞƌƚƐďĞůŝĞǀĞƚŚĞƌĞǁŝůůďĞƐƵĸĐŝĞŶƚŶĞǁƉƌŽũĞĐƚƐ
ƚŽŵĞĞƚŝŶĐƌĞĂƐĞĚĚĞŵĂŶĚ͘
/ŶĐŽŶƚƌĂƐƚ͕ƚŚĞƌĞŝƐĞdžƉĞĐƚĞĚƚŽďĞĂƐŚŽƌƞĂůůŝŶ
ĐŽďĂůƚĂŶĚŶŝĐŬĞůŝŶƚŚĞĨƵƚƵƌĞ͕ĐůĂŝŵƐƉƌŝǀĂƚĞĞƋƵŝƚLJ
ĮƌŵWĂůĂ/ŶǀĞƐƚŵĞŶƚƐ͘dŚĂƚƐŝƚƵĂƟŽŶŝŵƉůŝĞƐŚŝŐŚĞƌ
ĨƵƚƵƌĞƐĞůůŝŶŐƉƌŝĐĞƐ͘
ŽďĂůƚŝƐŐĞŶĞƌĂůůLJƉƌŽĚƵĐĞĚĂƐĂďLJͲƉƌŽĚƵĐƚ
ŽĨŶŝĐŬĞů͘/ƚŝƐƚŚĞĨŽƵƌƚŚůĂƌŐĞƐƚĐŽŵŵŽĚŝƚLJďLJ
ƌĞǀĞŶƵĞĨŽƌ&d^ϭϬϬŵŝŶĞƌ'ůĞŶĐŽƌĞ;'>EͿ͘
ĂƌĂŶĚďĂƩĞƌLJŵĂŶƵĨĂĐƚƵƌĞƌƐĂƌĞĞdžƉĞĐƚĞĚ
ƚŽƐƚƌŝŬĞĚĞĂůƐŽǀĞƌƚŚĞĐŽŵŝŶŐLJĞĂƌƐŝŶŽƌĚĞƌ
ƚŽƐĞĐƵƌĞĨƵƚƵƌĞĐŽďĂůƚƐƵƉƉůLJ͕ĞǀĞŶŝĨŝƚŵĞĂŶƐ
ƐƚŽĐŬƉŝůŝŶŐƚŚĞĐŽŵŵŽĚŝƚLJĨŽƌĂǁŚŝůĞ͘&ŽƌĞdžĂŵƉůĞ͕
GLENCORE
POSSIBLE LOSERS FROM THE
ELECTRIC VEHICLE REVOLUTION
1 ƵƚŽĮŶĂŶĐĞŝŶĚƵƐƚƌLJʹƐĐƌĂƉǀĂůƵĞƐĨŽƌ
ĐŽŵďƵƐƟŽŶĞŶŐŝŶĞĐĂƌƐĐŽƵůĚĨĂůů͕ƐŽůŽǁĞƌ
ƌĞĐŽǀĞƌLJƌĂƚĞŝĨƚŚĞůĞŶĚĞƌŶĞĞĚƐƚŽƌĞƉŽƐƐĞƐƐ
ĂŶĚƌĞƐĞůů͘>ŽĂŶǀŽůƵŵĞƐĐŽƵůĚĂůƐŽĨĂůůŝĨsƐ
ůĂƐƚůŽŶŐĞƌ͕ƐŽĨƌĞƋƵĞŶĐLJŽĨǀĞŚŝĐůĞƌĞƉůĂĐĞŵĞŶƚ
ĚĞĐůŝŶĞƐ͘
2 ƵƚŽĚĞĂůĞƌƐŚŝƉƐʹĐŽƵůĚƐĞĞƌĞĚƵĐƟŽŶŝŶ
ƐĞƌǀŝĐĞǁŽƌŬĂƐsƐŚĂǀĞĨĞǁĞƌǁŽƌŬŝŶŐ
ƉĂƌƚƐ͘ƵƚŽŶŽŵŽƵƐĚƌŝǀŝŶŐĐĂƉĂďŝůŝƟĞƐĐŽƵůĚ
ŚĞůƉƌĞĚƵĐĞƌŽĂĚƚƌĂĸĐĂĐĐŝĚĞŶƚƐ͕ƐŽƉŽƚĞŶƟĂůůLJ
ĨĞǁĞƌǀĞŚŝĐůĞƐƚŽĮdžƐŽƌĞĚƵĐĞĚĚĞŵĂŶĚĨŽƌ
ƐƉĂƌĞƉĂƌƚƐ͘
3 DŽƚŽƌŝŶƐƵƌĂŶĐĞŝŶĚƵƐƚƌLJʹĞdžƉĞƌƚƐ
ďĞůŝĞǀĞsƐĐŽƵůĚďĞƐĂĨĞƌŽŶƚŚĞƌŽĂĚƚŚĂŶ
ƚƌĂĚŝƟŽŶĂůĐĂƌƐ͕ƐŽĨĞǁĞƌĂĐĐŝĚĞŶƚƐĐŽƵůĚƉƵƐŚ
ĚŽǁŶŝŶƐƵƌĂŶĐĞƉƌĞŵŝƵŵƐ͘
ϰ KŝůƐĞĐƚŽƌʹƌĞĚƵĐĞĚƉĞƚƌŽůĚĞŵĂŶĚĐŽƵůĚ
ŚƵƌƚƚŚĞŽŝůŝŶĚƵƐƚƌLJ͕ƉƌŽŵƉƟŶŐƐŵĂůůĞƌ
ƉůĂLJĞƌƐƚŽƉŽƚĞŶƟĂůůLJŐŽďƵƐƚĂŶĚƉŽƐƐŝďůLJ
ĚƌŝǀŝŶŐŵĞƌŐĞƌƐĂŵŽŶŐƚŚĞůĂƌŐĞƌƉůĂLJĞƌƐ͘
sŽůŬƐǁĂŐĞŶŝƐƌƵŵŽƵƌĞĚƚŽŚĂǀĞĂƐŬĞĚƉƌŽĚƵĐĞƌƐ
ƚŽƐƵďŵŝƚƉƌŽƉŽƐĂůƐŽŶƐƵƉƉůLJŝŶŐĐŽďĂůƚĨŽƌƵƉƚŽ
ϭϬLJĞĂƌƐĨƌŽŵϮϬϭϵ͘
/ŶĐƌĞĂƐĞĚƵƐĂŐĞŽĨŶŝĐŬĞůƐĐƌĂƉĐŽƵůĚŚĞůƉƚŽ
ŵĞĞƚƐƵƉƉůLJƌĞƋƵŝƌĞŵĞŶƚƐŽŶƚŚĞŶŝĐŬĞůƐŝĚĞ͕LJĞƚŝƚ
ŝƐƵŶůŝŬĞůLJƚŽĮůůƚŚĞŵĂƌŬĞƚŐĂƉĞŶƟƌĞůLJ͘
h<ͲůŝƐƚĞĚŵŝŶĞƌƐǁŝƚŚŶŝĐŬĞůĞdžƉŽƐƵƌĞŝŶĐůƵĚĞ
05 October 2017 | SHARES | 25
 'ůĞŶĐŽƌĞĂŵŽŶŐƚŚĞůĂƌŐĞĐĂƉƐĂŶĚ,ŽƌŝnjŽŶƚĞ
DŝŶĞƌĂůƐ;,D͗/DͿĂŵŽŶŐƚŚĞƐŵĂůůĐĂƉƐ͘
WHAT ABOUT OTHER MINERS?
sĞĚĂŶƚĂZĞƐŽƵƌĐĞƐ;sͿŝƐůŽŽŬŝŶŐĂƚǁĂLJƐƚŽ
ƉƌŽĚƵĐĞĐŽďĂůƚĨŽƌďĂƩĞƌŝĞƐƌĂƚŚĞƌŝƚƐĐƵƌƌĞŶƚ
ŽƵƚƉƵƚŽĨĐŽƉƉĞƌͲĐŽďĂůƚĂůůŽLJ͘/ƚĂůƌĞĂĚLJƉƌŽĚƵĐĞƐ
ĂůƵŵŝŶŝƵŵǁŚŝĐŚŝƐĂŶŽƚŚĞƌĐŽŵŵŽĚŝƚLJŝŶ
ŝŶĐƌĞĂƐŝŶŐĚĞŵĂŶĚĨŽƌĞůĞĐƚƌŝĐĐĂƌƐ͘ŶLJŽŶĞ
ĐŽŶƐŝĚĞƌŝŶŐĂŶŝŶǀĞƐƚŵĞŶƚŝŶsĞĚĂŶƚĂƐŚŽƵůĚ
ŶŽƚĞůĞŐĂůĂĐƟŽŶŝŶĐŽŶŶĞĐƟŽŶǁŝƚŚƉŽůůƵƟŽŶ
ĂůůĞŐĂƟŽŶƐŝŶĂŵďŝĂ͘
,WŝůůŝƚŽŶ;>dͿŝƐĨŽĐƵƐŝŶŐŽŶĐŽƉƉĞƌĂƐ
ƚŚĞ͚ŵĞƚĂůŽĨƚŚĞĨƵƚƵƌĞ͛ŝŶƚĞƌŵƐŽĨƚŚĞĨĞĞĚŝŶŐ
ƚŚĞĞůĞĐƚƌŝĐǀĞŚŝĐůĞƌĞǀŽůƵƟŽŶ͘dĂůŬŝŶŐƚŽReuters
ůĂƐƚŵŽŶƚŚ͕ŝƚƐĂLJƐĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐƌĞƋƵŝƌĞĨŽƵƌ
ƟŵĞƐĂƐŵƵĐŚĐŽƉƉĞƌĂƐĐĂƌƐǁŚŝĐŚƌƵŶŽŶ
ĐŽŵďƵƐƟŽŶĞŶŐŝŶĞƐ͘
dŚĞƌĞĂƌĞƌŝƐŬƐƚŚĂƚĐŽďĂůƚŵŝŐŚƚƉůĂLJĂƐŵĂůůĞƌ
ƌŽůĞŝŶƚŚĞĨƵƚƵƌĞƚŚĂŶƉĞŽƉůĞĐƵƌƌĞŶƚůLJƚŚŝŶŬ͘&Žƌ
ĞdžĂŵƉůĞ͕ǁĞ͛ǀĞĂůƌĞĂĚLJƚĂůŬĞĚĂďŽƵƚ:ŽŚŶƐŽŶ
DĂƩŚĞLJĮŶĚŝŶŐĂǁĂLJƚŽĚĞǀĞůŽƉďĂƩĞƌLJ
ƚĞĐŚŶŽůŽŐLJǁŝƚŚůŽǁĞƌůĞǀĞůƐŽĨĐŽďĂůƚ͘/ŶǀĞƐƚŵĞŶƚ
ďĂŶŬĞƌĞŶďĞƌŐŐŽĞƐĂƐĨĂƌĂƐƐĂLJŝŶŐƚŚĂƚĐŽďĂůƚ
ĐŽƵůĚĞǀĞŶďĞƉŚĂƐĞĚŽƵƚŽĨůŝƚŚŝƵŵͲŝŽŶďĂƩĞƌŝĞƐ
ŽǀĞƌƚŚĞŶĞdžƚĮǀĞƚŽϭϬLJĞĂƌƐ͘/ƚƉƌĞĚŝĐƚƐŶŽ
ĚĞŵĂŶĚŝŶĐƌĞĂƐĞĨŽƌƚŚĞŵĞƚĂůĚƵƌŝŶŐƚŚŝƐƉĞƌŝŽĚ͘
͚/ŶŽƵƌǀŝĞǁ͕sƐǁŝůůŶŽƚƐŝŐŶŝĮĐĂŶƚůLJďĞŶĞĮƚ
ĐŽƉƉĞƌĂŶĚĐŽďĂůƚŵŝŶĞƌƐƐƵĐŚĂƐ'ůĞŶĐŽƌĞĂŶĚ
,W͕͛ŝƚƐĂLJƐ͘
ĞƌĞŶďĞƌŐďĞůŝĞǀĞƐĂƐŚŝŌƚŽƵůƚƌĂͲŶŝĐŬĞůͲƌŝĐŚ
ďĂƩĞƌŝĞƐĐŽƵůĚŽĐĐƵƌĨĂƐƚĞƌƚŚĂŶĞdžƉĞĐƚĞĚĚƵĞƚŽ
:ŽŚŶƐŽŶDĂƩŚĞLJ͛ƐĂĨŽƌĞŵĞŶƟŽŶĞĚďƌĞĂŬƚŚƌŽƵŐŚ͘
͚EŝĐŬĞůŝƐďĞĐŽŵŝŶŐĐƌƵĐŝĂůĂƐŝƚƐĐŽŶƚĞŶƚŝŶĂďĂƩĞƌLJ
ĚĞƚĞƌŵŝŶĞƐƚŚĞƌĂŶŐĞŽĨsƐ͘tĞĞƐƟŵĂƚĞƚŚĂƚϮϬŵ
ůĞĐƚƌŝĐǀĞŚŝĐůĞƐǁŽŶ͛ƚŽŶůLJďĞŵĂĚĞ
ďLJƚŚĞƚƌĂĚŝƟŽŶĂůĐĂƌŵĂŶƵĨĂĐƚƵƌĞƌƐ
TECHNOLOGY
AND ELECTRICAL
APPLIANCE
FIRMS ARE
LIKELY TO GET IN
ON THE GAME
26 | SHARES | 05 October 2017
COST PARITY
ůĞĐƚƌŝĐǀĞŚŝĐůĞƐĐŽƵůĚ
ĐŽƐƚƚŚĞƐĂŵĞĂƐ
ƚƌĂĚŝƟŽŶĂůĐŽŵďƵƐƟŽŶ
ĞŶŐŝŶĞĐĂƌƐďLJϮϬϮϬ
sƐĂůĞƐďLJϮϬϮϲǁŝůůƚƌĂŶƐůĂƚĞŝŶƚŽϬ͘ϳŵƚŽŶŶĞƐŽĨ
ŚŝŐŚƋƵĂůŝƚLJŶŝĐŬĞůƐƵůƉŚŝĚĞĚĞŵĂŶĚǁŚŝĐŚŝƐϴϱйŽĨ
ϮϬϭϲƉƌŽĚƵĐƟŽŶůĞǀĞůƐ͕͛ŝƚĐŽŵŵĞŶƚƐ͘
HOW DO YOU PLAY THE LITHIUM GAME?
ƐĨŽƌƉŝĐŬŝŶŐůŝƚŚŝƵŵͲƌĞůĂƚĞĚƐƚŽĐŬƐ͕ǁĞƚŚŝŶŬ
ŵŝŶĞƌƐǁŝƚŚĂĚĞĐĞŶƚĂƐƐĞƚƐƚĂŶĚĂĐŚĂŶĐĞŽĨ
ŵĂŬŝŶŐĂƉƌŽĮƚŽŶĐĞŝŶƉƌŽĚƵĐƟŽŶʹďƵƚǁĞĚŽŶ͛ƚ
ƐŚĂƌĞŵĂŶLJƉĞŽƉůĞ͛ƐĞŶƚŚƵƐŝĂƐŵƚŚĂƚLJŽƵǁŝůůŵĂŬĞ
ĂůŽƚŽĨŵŽŶĞLJĨƌŽŵŝŶǀĞƐƟŶŐĂŶLJŵŝŶĞƌǁŝƚŚĂ
ůŝƚŚŝƵŵĞdžƉůŽƌĂƟŽŶƉƌŽũĞĐƚ͘DŽƐƚŽĨƚŚĞůŝƚŚŝƵŵ
ƉůĂLJƐŽŶƚŚĞh<ŵĂƌŬĞƚĂƌĞŵĂŶLJ͕ŵĂŶLJLJĞĂƌƐĂǁĂLJ
ĨƌŽŵŐĞŶĞƌĂƟŶŐƌĞǀĞŶƵĞ͘
/ĨLJŽƵůŝŬĞƚŚĞůŝƚŚŝƵŵƐƚŽƌLJ͕ƚŚĞŽŶůLJƐƚŽĐŬ
ǁĞ͛ĚƐƵŐŐĞƐƚLJŽƵĞdžĂŵŝŶĞŝƐĂĐĂŶŽƌĂDŝŶĞƌĂůƐ
;E͗/DͿ͕ǁŚŝĐŚŝƐĐůŽƐĞƚŽƌĞůĞĂƐŝŶŐƚŚĞĮŶĂů
ĨĞĂƐŝďŝůŝƚLJƐƚƵĚLJŽŶŝƚƐ^ŽŶŽƌĂƉƌŽũĞĐƚĂŶĚƐŚŽƵůĚďĞ
ŝŶĂƉŽƐŝƟŽŶƚŽƌĂŝƐĞĮŶĂŶĐĞŝŶĞĂƌůLJϮϬϭϴĂŶĚƚŚĞŶ
ƐƚĂƌƚĂŶϭϴͲŵŽŶƚŚŵŝŶĞĐŽŶƐƚƌƵĐƟŽŶƉŚĂƐĞ͘
͚>ŝƚŚŝƵŵŚLJĚƌŽdžŝĚĞƌĂƚŚĞƌƚŚĂŶůŝƚŚŝƵŵĐĂƌďŽŶĂƚĞ
ǁŝůůďĞƚŚĞƉƌĞĨĞƌƌĞĚŵĂƚĞƌŝĂůĨŽƌĐƌĞĂƟŶŐŚŝŐŚ
ŶŝĐŬĞůĐĂƚŚŽĚĞŵĂƚĞƌŝĂůƐ͕͛ƐĂLJƐĞƌĞŶďĞƌŐ͘
hŶĨŽƌƚƵŶĂƚĞůLJĨŽƌĂĐĂŶŽƌĂ͕ŝƚŝƐŶŽůŽŶŐĞƌ
ƉƵƌƐƵŝŶŐƚŚĞŚLJĚƌŽdžŝĚĞƌŽƵƚĞ͘dŚĞĐŽŵƉĂŶLJĚŝĚ
ŚĂǀĞĂŶĂŐƌĞĞŵĞŶƚĂĨĞǁLJĞĂƌƐĂŐŽƚŽƐƵƉƉůLJdĞƐůĂ
ŝŶƚŚĞh^ǁŝƚŚůŝƚŚŝƵŵŚLJĚƌŽdžŝĚĞ͘dŚĂƚĚĞĂůŚĂƐŶŽǁ
ůĂƉƐĞĚĂŶĚƚŚĞŵŝŶĞƌŝƐĨŽĐƵƐĞĚŽŶƚŚĞƐŝĂŶĂŶĚ
'ĞƌŵĂŶŵĂƌŬĞƚƐ;ƚŚĞůĂƩĞƌŝƐǀŝĂĂůĞƐƐĂĚǀĂŶĐĞĚ
ƐĞĐŽŶĚƉƌŽũĞĐƚͿǁŝƚŚůŝƚŚŝƵŵĐĂƌďŽŶĂƚĞ͘
ĂĐĂŶŽƌĂŝƐƐƟůůĂƉƉĞĂůŝŶŐĨƌŽŵĂŶŝŶǀĞƐƚŵĞŶƚ
ƉĞƌƐƉĞĐƟǀĞ͕ŶŽŶĞƚŚĞůĞƐƐ͘/ƚŚĂƐĂůƌĞĂĚLJĂŐƌĞĞĚƚŽ
ƐĞůůůŝƚŚŝƵŵƚŽ:ĂƉĂŶĞƐĞďĂƩĞƌLJĐŚĞŵŝĐĂůƐƚƌĂĚĞƌ
,ĂŶǁĂŝŶƚŚĞĨƵƚƵƌĞĂŶĚƚŚŝƐƉĂƌƚŶĞƌŚĂƐƚĂŬĞŶĂ
ϵ͘ϯϱйƐƚĂŬĞŝŶƚŚĞŵŝŶĞƌǁŚŝĐŚƐŚŽǁƐĐŽŵŵŝƚŵĞŶƚ͘
ŶĂůLJƐƚϭϮŵŽŶƚŚƉƌŝĐĞƚĂƌŐĞƚƐĨŽƌĂĐĂŶŽƌĂĂƌĞŝŶ
ƚŚĞƌĂŶŐĞŽĨϭϮϬƉ͕ŝŵƉůLJŝŶŐĂďŽƵƚϱϬйƵƉƐŝĚĞĨƌŽŵ
ƚŚĞϳϴ͘ϰƉƚƌĂĚŝŶŐƉƌŝĐĞĂƚƚŚĞƟŵĞŽĨǁƌŝƟŶŐ͘;Ϳ
/^>/DZ
dŚĞĂƵƚŚŽƌĂŶŝĞůŽĂƚƐǁŽƌƚŚŚĂƐĂƉĞƌƐŽŶĂůŝŶǀĞƐƚŵĞŶƚŝŶ
^ĐŽƫƐŚDŽƌƚŐĂŐĞŵĞŶƟŽŶĞĚŝŶƚŚŝƐĂƌƟĐůĞ
 VI D EOS

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 MR MARKET
Are the rules for UK listed
company takeovers about
to get tougher?
New paper suggests bidders should say what will happen to target’s head office
and R&D functions
T
he Takeover Panel has,
in a paper issued on
19 September, made
proposals requiring buyers of
publicly listed UK companies to
ƌĞƉŽƌƚďĂĐŬŽŶĐĞƌƚĂŝŶŵĂƩĞƌƐ
ŽŶĞLJĞĂƌĂŌĞƌĐŽŵƉůĞƟŶŐƚŚĞŝƌ
ĂĐƋƵŝƐŝƟŽŶ͘dŚĞWĂŶĞůǁĂŶƚƐƚŽ
see if acquirers have kept their
ǁŽƌĚĂďŽƵƚƉůĂŶƐĂŶŶŽƵŶĐĞĚĂƚ
ƚŚĞƟŵĞŽĨĂŶĂĐƋƵŝƐŝƟŽŶ͘
Currently a bidder must
ŵĂŬĞƐƚĂƚĞŵĞŶƚƐŽĨŝŶƚĞŶƟŽŶ
ǁŝƚŚƌĞŐĂƌĚƚŽƚŚĞďƵƐŝŶĞƐƐ͕
employees and pension schemes
ŽĨƚŚĞŽīĞƌĞĞĐŽŵƉĂŶLJ͘dŚĞ
ƉĂƉĞƌŝƐĐŽŶƐƵůƟŶŐŽŶǁŚĞƚŚĞƌ
bidders should be required to
ŵĂŬĞĂĚĚŝƟŽŶĂů͕ŵŽƌĞƐƉĞĐŝĮĐ
ƐƚĂƚĞŵĞŶƚƐŽĨŝŶƚĞŶƟŽŶƌĞŐĂƌĚŝŶŐ
the target, namely:
1 RESEARCH AND
DEVELOPMENT
FUNCTIONS
2 BALANCE OF SKILLS
AND FUNCTIONS
3 EMPLOYEES AND
MANAGEMENT
4 HEADQUARTERS’
AND HEADQUARTERS
FUNCTIONS’ LOCATION
28 | SHARES | 05 October 2017
^ĞŶƐŝƟǀŝƚLJǁŝƚŚƌĞƐƉĞĐƚƚŽ
ƐƵĐŚŵĂƩĞƌƐŝƐŝŶĐƌĞĂƐĞĚǁŚĞŶ
the bidder is a non-UK one;
and such changes have been
interpreted as being directed at
ĨŽƌĞŝŐŶďŝĚĚĞƌƐ͘dŚŽƵŐŚŝŶĨĂĐƚ
the proposals apply to all bidders
regardless of origin it may suit
certain stakeholders to present
ŝƚĚŝīĞƌĞŶƚůLJ͘
ŚĂŶŐĞƐǁĞƌĞŵĂĚĞŽŶůLJĂ
ĨĞǁLJĞĂƌƐĂŐŽƚŽĂůůŽǁĨŽƌĂ
ƌĞŐŝŵĞŽĨĂͿďŝŶĚŝŶŐƉŽƐƚŽīĞƌ
undertakings and b) statements
ŽĨŝŶƚĞŶƟŽŶƚŚĂƚǁŽƵůĚ͕ŝŶƚŚĞ
ůĂƩĞƌĐĂƐĞ͕ŚŽůĚĨŽƌϭϮŵŽŶƚŚƐ
ƉŽƐƚĐŽŵƉůĞƟŽŶŶŽƚǁŝƚŚƐƚĂŶĚŝŶŐ
any change in honestly held
ďĞůŝĞĨƐŝŶĐĞƚŚĞƟŵĞŽĨƚŚĞ
ƌĞůĞǀĂŶƚƐƚĂƚĞŵĞŶƚ͘
It should be noted that there
ŝƐĂĚŝīĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞƚǁŽ
types of statements and the
ƌĞŐŝŵĞĂůůŽǁƐĨŽƌŝŶƚĞŶƟŽŶƐ
ƚŽĐŚĂŶŐĞǁŝƚŚƟŵĞƐƵďũĞĐƚƚŽ
ĐŽŶƐƵůƚĂƟŽŶǁŝƚŚƚŚĞWĂŶĞůĂŶĚ
ĐŚĂŶŐŝŶŐĐŝƌĐƵŵƐƚĂŶĐĞƐ͘
At present, the bid process is
a highly considered and heavily
ĂĚǀŝƐĞĚƵƉŽŶŽŶĞ͘
Bidders and their advisers
ĞdžĂŵŝŶĞĞĂĐŚǁŽƌĚŽĨĂŶLJ
ƐƚĂƚĞŵĞŶƚŵĂĚĞŝŶĐŽŶŶĞĐƟŽŶ
to a bid to determine its
appropriateness and to ensure
that misleading statements are
not made and a false market is
ŶŽƚĐƌĞĂƚĞĚ͘
It stands to reason that
ŝŶĐƌĞĂƐŝŶŐƚŚĞĂƌĞĂƐǁŚĞƌĞ
ƐƉĞĐŝĮĐƐƚĂƚĞŵĞŶƚƐŽĨĨƵƚƵƌĞ
ŝŶƚĞŶƟŽŶĂƌĞƚŽďĞŵĂĚĞʹƚŚĂƚ
ƚŚĞƐĂŵĞĐĂƌĞǁŝůůďĞĂƉƉůŝĞĚƚŽ
ƐƵĐŚƐƚĂƚĞŵĞŶƚƐ͘
The Takeover Panel’s paper
also proposes that such
statements be made, earlier,
ŝ͘Ğ͘ĂƚƚŚĞƟŵĞŽĨƚŚĞ
announcement by the bidder
ŽĨŝƚƐĮƌŵŝŶƚĞŶƟŽŶƚŽŵĂŬĞ
ĂŶŽīĞƌ͘
The provision of an annual
public compliance regime
ǁŚĞƌĞďLJƐƚĂƚĞŵĞŶƚƐĂƌĞ
ƌĞƉŽƌƚĞĚŽŶǁŝůůďĞƵƐĞĨƵůĨŽƌ
increasing transparency and
accountability for statements
;ǁŚĞƚŚĞƌƚƌƵůLJďŝŶĚŝŶŐŽƌŶŽƚͿŝŶ
ƚŚĞĐŽƵƌƐĞŽĨĂďŝĚ͘
/ƚŝƐǁŽƌƚŚŶŽƟŶŐƚŚĂƚƚŚĞ
City Code on Takeovers and
Mergers only applies to Code
governed companies, and does
ŶŽƚƉƌŽǀŝĚĞĂŶĂŶƐǁĞƌƚŽƚŚĞ
same issues that arise in the
context of takeovers of privately
ŽǁŶĞĚͬŶŽŶͲŽĚĞŐŽǀĞƌŶĞĚ
ĐŽŵƉĂŶŝĞƐ͘ŽĚĞŐŽǀĞƌŶĞĚ
company is predominantly a UK
company listed on the London
^ƚŽĐŬdžĐŚĂŶŐĞ͘
By Mark Crofskey, solicitor,
head of corporate M&A; and
:ŽŶZĂŐŐĞƩ͕ĚŝƌĞĐƚŽƌ͕ĐŽƌƉŽƌĂƚĞ
ĮŶĂŶĐĞĂƚWǁ͘
INVESTMENT
FACTS.
WHO CAN YOU TRUST?
In uncertain times, when the
economy is buffeted by change,
it can be hard to know who to
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 INVESTMENT TRUSTS

Don’t allow fees to

become foes
High charges can act as a drag on your portfolio’s performance

W hen weighing up
investment trusts to
ĂĚĚƚŽLJŽƵƌƉŽƌƞŽůŝŽ͕
ĐŽƐƚŝƐĂŬĞLJĐŽŶƐŝĚĞƌĂƟŽŶ͘dŚĞ
greater the charges associated
/͛ƐĐŽŵŵƵŶŝĐĂƟŽŶƐĚŝƌĞĐƚŽƌ͕
notes investment trust costs
ĂƌĞŽŌĞŶůŽǁĞƌĚƵĞƚŽƚŚĞŝƌ
ƐƚƌƵĐƚƵƌĞ͘
͚^ŝŶĐĞϮϬϭϯŽǀĞƌĂƚŚŝƌĚŽĨ
&ƵŶĚƐ/ŶĚĞdžƌĞƚƵƌŶŽĨϰ͘ϲй͘dŚŝƐ
ƐƚƌŽŶŐƉĞƌĨŽƌŵĂŶĐĞƉĂƌƟĂůůLJ
ĞdžƉůĂŝŶƐǁŚLJƚŚĞƐŚĂƌĞƐĐƵƌƌĞŶƚůLJ
ƚƌĂĚĞĂƚĂŶϴ͘ϯйƉƌĞŵŝƵŵƚŽŶĞƚ
ĂƐƐĞƚǀĂůƵĞ;EsͿ͘
ǁŝƚŚĂĨƵŶĚ͕ƚŚĞďĞƩĞƌLJŽƵƌ investment companies have Perpetual Income & Growth
investments must perform to reduced their charges to Investment Trust (PLI) has
ĚĞůŝǀĞƌLJŽƵĂƌĞƚƵƌŶ͘ ďĞŶĞĮƚƐŚĂƌĞŚŽůĚĞƌƐďLJĐƵƫŶŐ removed its performance fee
KŶĞŽĨƚŚĞďŝŐŐĞƐƚĐŽƐƚƐĂƌĞ ŵĂŶĂŐĞŵĞŶƚĨĞĞƐ͕ĞůŝŵŝŶĂƟŶŐ ƚŽŽ͘&ƌŽŵϭƉƌŝů͕ƚŚĞĂŶŶƵĂů
the fees investment trusts pay performance fees or introducing management fee was changed
to fund managers for managing ƟĞƌĞĚĨĞĞƐ͘dŚŝƐĚĞŵŽŶƐƚƌĂƚĞƐ ƚŽĂŶĂŶŶƵĂůƌĂƚĞŽĨϬ͘ϲйŽŶƚŚĞ
ƚŚĞƉŽƌƞŽůŝŽ͖ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ ƚŚĞǀĂůƵĞŽĨƚŚĞŝŶĚĞƉĞŶĚĞŶƚ ĮƌƐƚάϵϬϬŵŽĨƚŚĞƚƌƵƐƚ͛ƐĂƐƐĞƚƐ
ŵĂLJĂůƐŽƉĂLJĂƉĞƌĨŽƌŵĂŶĐĞ ďŽĂƌĚǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐ ĂŶĚĂƚĂƌĂƚĞŽĨϬ͘ϰйƚŚĞƌĞĂŌĞƌ͘
fee if the manager outperforms ƐŚĂƌĞŚŽůĚĞƌƐ͛ŝŶƚĞƌĞƐƚƐ͕͛ƐŚĞƐĂLJƐ͘ WƌĞǀŝŽƵƐůLJ͕ĨĞĞƐǁĞƌĞďĂƐĞĚ
ĐĞƌƚĂŝŶƚĂƌŐĞƚƐ͘ ŽŶϬ͘ϲйƉĞƌLJĞĂƌƵƉƚŽάϱϬϬŵ
&ĞĞƐĐŚĂƌŐĞĚďLJĂĐƟǀĞůLJͲ WZ&KZDE& ĂŶĚϬ͘ϰйƚŚĞƌĞĂŌĞƌ͕ǁŝƚŚĂ
ŵĂŶĂŐĞĚĨƵŶĚƐĂƌĞĨƌĞƋƵĞŶƚůLJ ABOLITIONS ƉĞƌĨŽƌŵĂŶĐĞĨĞĞŽĨϭϬйŽĨ
ƵŶĚĞƌƚŚĞƐƉŽƚůŝŐŚƚ͖ƐŽŵĞĂƌĞ zĞĂƌͲƚŽͲĚĂƚĞ͕ƐĞǀĞƌĂůƚƌƵƐƚƐŚĂǀĞ any outperformance over the
accused of overcharging investors ůŽǁĞƌĞĚƚŚĞŝƌĐŽƐƚƐƚƌƵĐƚƵƌĞďLJ &d^ůůͲ^ŚĂƌĞĐĂƉƉĞĚĂƚϬ͘ϱй
ĚĞƐƉŝƚĞĚĞůŝǀĞƌŝŶŐƉŽŽƌƌĞƚƵƌŶƐ͘ ĂďŽůŝƐŚŝŶŐƉĞƌĨŽƌŵĂŶĐĞĨĞĞƐ͘ ŽĨŶĞƚĂƐƐĞƚƐ͘
/ŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐŚŝƐƚŽƌŝĐĂůůLJ tŝƚŚĞīĞĐƚĨƌŽŵϭ:ĂŶƵĂƌLJ͕ ŽŝůŝŶŐĂůůƚŚŝƐĚŽǁŶ͕ŝŶǀĞƐƚŽƌƐ
enjoyed a fee advantage over unit &ΘŽŵŵĞƌĐŝĂůWƌŽƉĞƌƚLJ can access the stock picking
ƚƌƵƐƚƐ͕ĂůƚŚŽƵŐŚƚŚŝƐŚĂƐŶĂƌƌŽǁĞĚ
Trust (FCPT) removed its acumen and strong performance
ƐŝŶĐĞϮϬϭϯǁŚĞŶƌĞŐƵůĂƟŽŶ performance fee and changed ŽĨůŽŶŐͲƐĞƌǀŝŶŐŵĂŶĂŐĞƌDĂƌŬ
ĐŽŵƉĞůůĞĚƵŶŝƚƚƌƵƐƚƐƚŽŝƐƐƵĞ ŝƚƐďĂƐĞŵĂŶĂŐĞŵĞŶƚĨĞĞƚŽ ĂƌŶĞƩŵŽƌĞĐŚĞĂƉůLJ͕ǁŚŝůĞĂŶ
ĐŚĞĂƉĞƌ͚ĐůĞĂŶ͛ƐŚĂƌĞĐůĂƐƐĞƐ͘ Ϭ͘ϱϱйƉĞƌLJĞĂƌŽĨƚŚĞŐƌŽƵƉ͛Ɛ ϴ͘ϲйƐŚĂƌĞƉƌŝĐĞĚŝƐĐŽƵŶƚƚŽEs
ŐƌŽƐƐĂƐƐĞƚƐ͖ŝƚǁŝůůďĞƌĞĚƵĐĞĚ ŝŵƉůŝĞƐĂďƵLJŝŶŐŽƉƉŽƌƚƵŶŝƚLJ͘
OPPORTUNITY COSTS ƚŽϬ͘ϱϮϱйŽŶĂƐƐĞƚƐďĞƚǁĞĞŶ ůƐŽŝŶŝŶǀĞƐƚŽƌƐ͛ŐŽŽĚŬƐ
,ĞůƉĨƵůůLJ͕ĚĞƚĂŝůƐŽĨŝŶǀĞƐƚŵĞŶƚ άϭ͘ϱďŶĂŶĚάϮďŶĂŶĚϬ͘ϱйŽŶ is ďĞƌĚĞĞŶ&ƌŽŶƟĞƌDĂƌŬĞƚƐ
ƚƌƵƐƚŵĂŶĂŐĞŵĞŶƚĨĞĞƐ͕ĂŶĚĂŶLJ ĂƐƐĞƚƐŵŽƌĞƚŚĂŶάϮďŶ͘ ;&DͿ͘ƐĂŶďĞƌĚĞĞŶ^ƚĂŶĚĂƌĚ
ƉĞƌĨŽƌŵĂŶĐĞĨĞĞƐ͕ĐĂŶďĞĨŽƵŶĚ dŚĞƚƌƵƐƚĂŝŵƐƚŽĚĞůŝǀĞƌ Investments spokesperson
ŽŶƚŚĞǁĞďƐŝƚĞŽĨƚŚĞƐƐŽĐŝĂƟŽŶ ĂŶĂƩƌĂĐƟǀĞůĞǀĞůŽĨŝŶĐŽŵĞ ĞdžƉůĂŝŶƐ͕ƚŚĞŵĂŶĂŐĞŵĞŶƚĨĞĞ
ŽĨ/ŶǀĞƐƚŵĞŶƚŽŵƉĂŶŝĞƐ;/Ϳ͘ ƚŽŐĞƚŚĞƌǁŝƚŚƐĐŽƉĞĨŽƌĐĂƉŝƚĂů ǁĂƐĐƵƚƚŽϭйŽĨEsǁŚŝĐŚŚĂƐ
dŚĞ/ƐŚŽǁƐ͚ŽŶŐŽŝŶŐ and income growth through ŚĞůƉĞĚƚŚĞƐŚĂƌĞƐƚƌĂĚĞĐůŽƐĞƌƚŽ
ĐŚĂƌŐĞƐ͛ĨŽƌĂůůŝƚƐŵĞŵďĞƌƐ͕Ă ĂĚŝǀĞƌƐŝĮĞĚh<ĐŽŵŵĞƌĐŝĂů ĂƐƐĞƚǀĂůƵĞ͘
ŵĞĂƐƵƌĞŽĨƚŚĞƌĞŐƵůĂƌƌƵŶŶŝŶŐ ƉƌŽƉĞƌƚLJƉŽƌƞŽůŝŽ͘
costs of an investment trust &ΘŽŵŵĞƌĐŝĂůWƌŽƉĞƌƚLJ͛Ɛ WINDS OF CHANGE
ĞdžƉƌĞƐƐĞĚĂƐĂƉĞƌĐĞŶƚĂŐĞ͕ ŶĞƚĂƐƐĞƚǀĂůƵĞ;EsͿƚŽƚĂůƌĞƚƵƌŶ KƚŚĞƌƐƚƌƵƐƚƐƚŽŚĂǀĞĂďŽůŝƐŚĞĚ
ĂƐǁĞůůĂƐĂƐĞƉĂƌĂƚĞĮŐƵƌĞ ĨŽƌƚŚĞƐŝdžŵŽŶƚŚƐƚŽ:ƵŶĞϮϬϭϳ ƉĞƌĨŽƌŵĂŶĐĞĨĞĞƐŝŶĐůƵĚĞ
ĨŽƌ͚ŽŶŐŽŝŶŐĐŚĂƌŐĞƐƉůƵƐ ǁĂƐϱ͘ϭй͕ŽƵƚƉĞƌĨŽƌŵŝŶŐŝƚƐ ůĂĐŬZŽĐŬ>ĂƟŶŵĞƌŝĐĂŶ
ƉĞƌĨŽƌŵĂŶĐĞĨĞĞƐ͛͘ ďĞŶĐŚŵĂƌŬ͖ƚŚĞD^//Wůů (BRLA)͘WƌŝŽƌƚŽϭ:ĂŶƵĂƌLJϮϬϭϳ͕
ŶŶĂďĞůƌŽĚŝĞͲ^ŵŝƚŚ͕ƚŚĞ YƵĂƌƚĞƌůLJĂŶĚDŽŶƚŚůLJsĂůƵĞĚ ƚŚĞĂŶŶƵĂůŵĂŶĂŐĞŵĞŶƚĨĞĞǁĂƐ

30 | SHARES | 05 October 2017

 INVESTMENT TRUSTS

Ϭ͘ϴϱйŽĨŶĞƚĂƐƐĞƚƐĂŶĚĂ ĨĞĞǁŝůůƌŝƐĞĨƌŽŵϬ͘ϲйƚŽ ƉĞƌLJĞĂƌ͕ǁŝƚŚƚŚĞƉĞƌĨŽƌŵĂŶĐĞ

performance fee was FOR Ϭ͘ϲϱйŽĨŶĞƚĂƐƐĞƚƐ͘ ĨĞĞƉƌŽƉŽƌƟŽŶŝŶĐƌĞĂƐĞĚ
ƉĂLJĂďůĞ͘ůĂĐŬZŽĐŬŝƐ MORE ON HOW ŚĂŶŐĞŚĂƐĂůƐŽ ĨƌŽŵϭϬйƚŽϭϱйŽĨEsƚŽƚĂů
ŶŽǁƉĂŝĚĂŶĂŶŶƵĂů AIC MEASURES occurred at ůĂĐŬZŽĐŬ return outperformance of the
management fee of CHARGES Throgmorton Trust ďĞŶĐŚŵĂƌŬ;ŵĞĂƐƵƌĞĚŽŶĂ
Ϭ͘ϴйŽĨŶĞƚĂƐƐĞƚƐ CLICK (THRG)͕ĨŽĐƵƐĞĚŽŶ ƚǁŽͲLJĞĂƌƌŽůůŝŶŐďĂƐŝƐͿ͕ǁŚŝůĞƚŚĞ
and the performance ĮƌŵƐǁŝƚŚƌŽďƵƐƚ ƉĞƌĨŽƌŵĂŶĐĞĨĞĞĐĂƉŚĂƐďĞĞŶ
ĨĞĞŚĂƐďĞĞŶƌĞŵŽǀĞĚ͘ HERE ďƵƐŝŶĞƐƐŵŽĚĞůƐ͕ƐƚƌŽŶŐ ƌĞĚƵĐĞĚĨƌŽŵϭйŽĨ͚ƉĞƌĨŽƌŵĂŶĐĞ
:ĂŶƵƐ,ĞŶĚĞƌƐŽŶͲŵĂŶĂŐĞĚ ĐĂƐŚŇŽǁƐĂŶĚĨĂǀŽƵƌĂďůĞ ĨĞĞŵĂƌŬĞƚǀĂůƵĞ͛ƚŽϬ͘ϵй͘
,ĞŶĚĞƌƐŽŶŝǀĞƌƐŝĮĞĚ/ŶĐŽŵĞ ŝŶĚƵƐƚƌLJĐŚĂƌĂĐƚĞƌŝƐƟĐƐůĞĚďLJ dŚĞŚŽƉĞŝƐƚŚĞŶĞǁ
Trust (HDIV)ŚĂƐĂďŽůŝƐŚĞĚ ŵĂŶĂŐĞŵĞŶƚƚĞĂŵƐĐĂƉĂďůĞŽĨ ĨĞĞƐƚƌƵĐƚƵƌĞǁŝůůŝŵƉƌŽǀĞ
its performance fee (from 1 ͚ƐĞůĨͲŚĞůƉ͛͘dŚĞďĂƐĞŵĂŶĂŐĞŵĞŶƚ ƉĞƌĨŽƌŵĂŶĐĞĂŶĚƐƚĚĞŵĂŶĚ
EŽǀĞŵďĞƌͿ͕ĂůƚŚŽƵŐŚƚŚĞďĂƐĞ ĨĞĞŚĂƐďĞĞŶŚĂůǀĞĚƚŽϬ͘ϯϱй ĨŽƌƚŚĞƐŚĂƌĞƐ͕ǁŚŝĐŚƚƌĂĚĞĂƚĂ
ƐƚĞĞƉϭϱ͘ϴйĚŝƐĐŽƵŶƚƚŽEs͘
INVESTMENT TRUST - HIGHEST CHARGES HUNTING HIGH & LOW
Company Sector Total AIC ongoing ƐƚŚĞƚĂďůĞƐƌĞǀĞĂů͕ƚŚŽƐĞƚƌƵƐƚƐ
assets charges plus ǁŝƚŚƚŚĞůŽǁĞƐƚ/ŽŶŐŽŝŶŐ
(£m) perf %
ĐŚĂƌŐĞƐƉůƵƐƉĞƌĨŽƌŵĂŶĐĞ
Phoenix Spree Property Direct - Europe 353 6.96 ŝŶĐůƵĚĞtŽŽĚĨŽƌĚWĂƟĞŶƚ
Deutschland
ĂƉŝƚĂůdƌƵƐƚ;tWdͿŽŶϬ͘ϭϴй͕
British & American UK Equity Income 24 6.01
cheap given the acumen of
Regional REIT Property Direct - UK 436 4.44 EĞŝůtŽŽĚĨŽƌĚǁŚŽĐŽŶƟŶƵĞƐ
VPC Specialty Lending Sector Specialist: Debt 344 3.99 ƚŽƐĐŽƵƚĨŽƌĚŝƐƌƵƉƟǀĞŚŝŐŚ
Investments ƉŽƚĞŶƟĂůƚĞĐŚďƵƐŝŶĞƐƐĞƐ͘
Vinaland Property Direct - Asia Pacific 303 3.93 KƚŚĞƌƐǁŝƚŚůŽǁĐŽƐƚƐŝŶĐůƵĚĞ
Marwyn Value Investors Global Smaller Companies 162 3.90 Independent Investment Trust
MedicX Property Specialist 644 3.82 (IIT)ĂƚϬ͘ϯϰй͕:ŽďƵƌƟƐͲƐƚĞĞƌĞĚ
dividend hero ŝƚLJŽĨ>ŽŶĚŽŶ
INVESTMENT TRUST - LOWEST CHARGES (CTY)͕^ĐŽƫƐŚDŽƌƚŐĂŐĞ;^DdͿ
Company Sector Total AIC ongoing and DĞƌĐĂŶƟůĞ;DZͿ͕ǁŚŝĐŚ
assets charges plus has reduced its management
(£m) perf % ĨĞĞĨƌŽŵϬ͘ϱйŽĨƚŚĞĐŽŵƉĂŶLJ͛Ɛ
JPMorgan Elect Managed Sector Specialist: Liquidity 5 0.03 ŵĂƌŬĞƚĐĂƉƚŽϬ͘ϰϳϱй͕ĂĨĞĞƐĞƚ
Cash Funds ƚŽƌĞĚƵĐĞĨƵƌƚŚĞƌƚŽϬ͘ϰϱйĨƌŽŵ
Woodford Patient Capital UK All Companies 1,001 0.18 ϭ&ĞďƌƵĂƌLJϮϬϭϴ͘
Independent Global 325 0.34 dŚŽƐĞǁŝƚŚƚŚĞŚŝŐŚĞƐƚĐŚĂƌŐĞƐ
Investment Trust ƚĞŶĚƚŽďĞǁŝƚŚŝŶƚŚĞ/͛Ɛ
Invesco Perpetual Select Sector Specialist: Liquidity 5 0.40 ƉƌŽƉĞƌƚLJƐĞĐƚŽƌƐ͖ŝŶǀĞƐƟŶŐŝŶ
Managed Liquidity Funds ĂůƚĞƌŶĂƟǀĞĂƐƐĞƚƐůŝŬĞƌĞĂůĞƐƚĂƚĞ
City of London UK Equity Income 1,545 0.43 ƌĞƋƵŝƌĞƐĞdžƉĞƌƚŬŶŽǁůĞĚŐĞĂŶĚ
Law Debenture Global 909 0.43 ƌĞƐĞĂƌĐŚ͘^ŽƚŚĞŽŶŐŽŝŶŐĐŚĂƌŐĞ
Corporation ƌĞŇĞĐƚƐƚŚŝƐƐŝƚƵĂƟŽŶ͘
Scottish Mortgage Global 6,553 0.44 dŚĞLJŝŶĐůƵĚĞƐƚƌŽŶŐůLJͲ
Mercantile UK All Companies 2,139 0.50 ƉĞƌĨŽƌŵŝŶŐ'ĞƌŵĂŶƌĞƐŝĚĞŶƟĂů
Bankers Global 1,121 0.52
ƌĞĂůĞƐƚĂƚĞƐƉĞĐŝĂůŝƐƚWŚŽĞŶŝdž
Spree Deutschland (PSDL)
Temple Bar UK Equity Income 1,036 0.52
ĨŽůůŽǁĞĚďLJƚŚĞůŝŬĞƐŽĨZĞŐŝŽŶĂů
Alliance Trust Global 2,948 0.54
REIT (RGL) and sW^ƉĞĐŝĂůƚLJ
Source: AIC/Morningstar >ĞŶĚŝŶŐ/ŶǀĞƐƚŵĞŶƚƐ;s^>Ϳ͘;:Ϳ

05 October 2017 | SHARES | 31

 MONEY MATTERS Helping you with personal finance issues

How to switch to a stocks

and shares ISA
Top tips on keeping your tax-free allowance and getting a better return on your money

I
f you’re fed up with the low
ŝŶƚĞƌĞƐƚƌĂƚĞƐŽīĞƌĞĚďLJ
ĐĂƐŚ/^ƐŝƚĐŽƵůĚďĞƟŵĞƚŽ
switch to a stocks and shares ISA.
dƌĂŶƐĨĞƌƌŝŶŐLJŽƵƌŵŽŶĞLJ
correctly will ensure your tax-free
ĂůůŽǁĂŶĐĞƌĞŵĂŝŶƐŝŶƚĂĐƚ͘

WHY SWITCH TO STOCKS

AND SHARES?
/ŶƚĞƌĞƐƚƌĂƚĞƐĂƌĞĞdžƚƌĞŵĞůLJůŽǁ
ǁŚŝĐŚŵĞĂŶƐƚŚĞĂŶŶƵĂůƌĞƚƵƌŶƐ
ĂǀĂŝůĂďůĞŽŶĐĂƐŚ/^ƐĂƌĞǀĞƌLJ
poor. The highest rate we could
ĮŶĚǁĂƐũƵƐƚŽǀĞƌϮйĨŽƌĂĮǀĞͲ
LJĞĂƌĮdžĞĚƌĂƚĞ/^͘dŚŝƐŝƐůŽǁĞƌ
ƚŚĂŶƚŚĞĐƵƌƌĞŶƚŝŶŇĂƟŽŶƌĂƚĞŽĨ
Ϯ͘ϵй͕ǁŚŝĐŚŵĞĂŶƐLJŽƵƌŵŽŶĞLJ
will actually drop in value in real
ƚĞƌŵƐŽǀĞƌƟŵĞ͘
/ŶǀĞƐƟŶŐŝŶƐŚĂƌĞƐŽīĞƌƐLJŽƵ /^͕ƚŚĞŶĞǁůLJĚĞƉŽƐŝƚĞĚŵŽŶĞLJ
ǁŝƚŚĂŵƵĐŚŐƌĞĂƚĞƌĐŚĂŶĐĞŽĨ ǁŝůůĐŽƵŶƚĂŐĂŝŶƐƚLJŽƵƌάϮϬ͕ϬϬϬ
ŐƌŽǁŝŶŐLJŽƵƌŵŽŶĞLJĂƚĂĚĞĐĞŶƚ annual ISA allowance. If this
rate. The Barclays Equity Gilt ƚĂŬĞƐLJŽƵŽǀĞƌLJŽƵƌĂůůŽǁĂŶĐĞ͕

“
Study shows that over the last your savings could lose their
ϱϬLJĞĂƌƐʹŽŶĐĞƚŚĞŝŵƉĂĐƚŽĨ tax-free status.
ŝŶŇĂƟŽŶŝƐƐƚƌŝƉƉĞĚŽƵƚʹƐƚŽĐŬƐ SOME CASH ISAS zŽƵƐŝŵƉůLJŶĞĞĚƚŽĮůůŝŶĂ
and shares have delivered an ƚƌĂŶƐĨĞƌĨŽƌŵǁŝƚŚLJŽƵƌŶĞǁ
ĂŶŶƵĂůƌĞƚƵƌŶŽĨϱ͘ϳйĐŽŵƉĂƌĞĚ WILL CHARGE A PENALTY ƉƌŽǀŝĚĞƌ͕ŐŝǀŝŶŐƚŚĞŵLJŽƵƌ
ǁŝƚŚĂũƵƐƚϭ͘ϱйĨƌŽŵĐĂƐŚ͘ WHEN YOU CLOSE personal details and cash ISA
ĂĐĐŽƵŶƚŶƵŵďĞƌ͘
YOUR ACCOUNT

”
HOW DO I TRANSFER If your current cash ISA
MY MONEY? contains savings paid in during
zŽƵĐĂŶƚƌĂŶƐĨĞƌĨƌŽŵĂĐĂƐŚ the current tax year then you
ISA to a stocks and shares ISA have to transfer the whole
ĂƚĂŶLJƟŵĞ͘Ƶƚŝƚ͛ƐĞdžƚƌĞŵĞůLJ account to your new provider. If
ŝŵƉŽƌƚĂŶƚƚŚĂƚLJŽƵĂƌƌĂŶŐĞƚŚĞ ƚŚĞƐĂǀŝŶŐƐĂƌĞĨƌŽŵƉƌĞǀŝŽƵƐƚĂdž
transfer through your new ISA LJĞĂƌƐ͕LJŽƵĐĂŶŵĂŬĞĂƉĂƌƟĂůŽƌ
provider. whole transfer.
/ĨLJŽƵǁŝƚŚĚƌĂǁƚŚĞŵŽŶĞLJ͕ ^ŽŵĞĐĂƐŚ/^ƐǁŝůůĐŚĂƌŐĞ
close your account and then a penalty when you close your
reinvest the cash into another account. This is usually the case

32 | SHARES | 05 October 2017


ŝĨLJŽƵŽƉƚĞĚĨŽƌĂĮdžĞĚƌĂƚĞ/^
and you’re closing the account
ďĞĨŽƌĞƚŚĞƚĞƌŵŚĂƐŵĂƚƵƌĞĚ͘
You’ll need to weigh up whether
ƚŚĞďĞŶĞĮƚƐŽĨƚŚĞƐƚŽĐŬƐĂŶĚ
ƐŚĂƌĞƐ/^ŵĂŬĞŝƚǁŽƌƚŚƉĂLJŝŶŐ
the penalty.
/ƚǁŝůůƵƐƵĂůůLJƚĂŬĞĂďŽƵƚƚǁŽ
weeks for a cash transfer to
ĐŽŵƉůĞƚĞ͕ĂŌĞƌǁŚŝĐŚLJŽƵĐĂŶ
ƐƚĂƌƚŝŶǀĞƐƟŶŐ͘
CHOOSING A PROVIDER
dŚĞƌĞĂƌĞůŽƚƐŽĨĐŽŵƉĂŶŝĞƐ
ŽīĞƌŝŶŐƐƚŽĐŬƐĂŶĚƐŚĂƌĞƐ/^Ɛ͘
ZŽĚŽůĨŽƌĞƐƉŽ͕ƐĞŶŝŽƌ
ĂŶĂůLJƐƚĂƚWůĂƞŽƌƵŵ͕ĂƌĞƐĞĂƌĐŚ
ĐŽŵƉĂŶLJǁŚŝĐŚƐƉĞĐŝĂůŝƐĞƐ
ŝŶŝŶǀĞƐƚŵĞŶƚƉůĂƞŽƌŵƐ͕ƐĂLJƐ
ƚŚĞŵŽƐƚŝŵƉŽƌƚĂŶƚĨĂĐƚŽƌƐƚŽ
ĐŽŶƐŝĚĞƌĂƌĞďƌĂŶĚ͕ƉƌŝĐĞĂŶĚĂŶ
ĞĂƐLJͲƚŽͲƵƐĞǁĞďƐŝƚĞ͘
,ĞƐĂLJƐŵŽƌĞĞdžƉĞƌŝĞŶĐĞĚ
investors should look for
ĂƉƌŽǀŝĚĞƌƚŚĂƚŽīĞƌƐ
ƐƚƌĂŝŐŚƞŽƌǁĂƌĚĂĐĐĞƐƐƚŽĂǁŝĚĞ
ƌĂŶŐĞŽĨŝŶǀĞƐƚŵĞŶƚŽƉƟŽŶƐ͕
ŝŶĐůƵĚŝŶŐĨƵŶĚƐ͕ŝŶǀĞƐƚŵĞŶƚ
ƚƌƵƐƚƐ͕ĞdžĐŚĂŶŐĞͲƚƌĂĚĞĚĨƵŶĚƐ
;d&ƐͿ͕ƐŚĂƌĞƐĂŶĚďŽŶĚƐ͘
^ŽŵĞƉůĂƞŽƌŵƐůĞƚLJŽƵ
ƉŝĐŬLJŽƵƌŽǁŶŝŶǀĞƐƚŵĞŶƚƐ
ĂŶĚŽƚŚĞƌƐŽīĞƌƌĞĂĚLJͲŵĂĚĞ
ƉŽƌƞŽůŝŽƐƚŚĂƚƚŚĞLJďƵŝůĚĂŶĚƌƵŶ
ƚŚĞŵƐĞůǀĞƐ͘
,ĂŶŶĂŚWƵƌƐůŽǁ͕ƐƉŽŬĞƐƉĞƌƐŽŶ
Ăƚ:ĞůůzŽƵŝŶǀĞƐƚ͕ƐĂLJƐĞŶƐƵƌŝŶŐ
ƚŚĞƉůĂƞŽƌŵŽīĞƌƐƚŚĞƐĞƌǀŝĐĞƐ
LJŽƵŶĞĞĚŝƐĂůƐŽŝŵƉŽƌƚĂŶƚ͘
͚/ĨLJŽƵǁĂŶƚƚŽďĞĂďůĞƚŽ
ŵĂŶĂŐĞLJŽƵƌŝŶǀĞƐƚŵĞŶƚƐŽŶƚŚĞ
ŐŽŵĂŬĞƐƵƌĞƚŚĞ/^ƉƌŽǀŝĚĞƌ
ŚĂƐĂŐŽŽĚŵŽďŝůĞĂƉƉĨŽƌLJŽƵƌ
ƉŚŽŶĞ͘ZĞƐĞĂƌĐŚĂŶĚƚŽŽůƐŵĂLJ
ĂůƐŽďĞŝŵƉŽƌƚĂŶƚ͕ƉĂƌƟĐƵůĂƌůLJŝĨ
LJŽƵ͛ƌĞĂůĞƐƐĐŽŶĮĚĞŶƚŝŶǀĞƐƚŽƌ
ŽƌŶĞǁƚŽŝŶǀĞƐƟŶŐĂŶĚǁĂŶƚ
a helping hand. Good research
ĐĂŶŚĞůƉŐƵŝĚĞĂŶĚŝŶĨŽƌŵ
LJŽƵƌŝŶǀĞƐƚŵĞŶƚĚĞĐŝƐŝŽŶƐĂŶĚ
“
IF YOU’RE A LESS
CONFIDENT INVESTOR
OR ARE LOOKING FOR
LOWER RISK YOU COULD
CONSIDER A MULTI-ASSET
FUND. THE CHARGES
TEND TO BE HIGHER THAN
REGULAR FUNDS BUT
THEY ARE AN EASY WAY
OF DIVERSIFYING YOUR
PORTFOLIO
”
ƐŽŵĞƉůĂƞŽƌŵƐŽīĞƌŽŶůŝŶĞ
ƚŽŽůƐǁŚŝĐŚĐĂŶŚĞůƉƚŽďƵŝůĚ
ĂŶĚĂŶĂůLJƐĞLJŽƵƌƉŽƌƞŽůŝŽ͕͛ƐŚĞ
explains.
Ensuring you don’t pay
excessive charges is crucial
ďĞĐĂƵƐĞĨĞĞƐĐĂŶĞĂƚŝŶƚŽLJŽƵƌ
ƌĞƚƵƌŶƐŽǀĞƌƚŚĞůŽŶŐƚĞƌŵ͘
Charges to look out for include
ĂĚŵŝŶŝƐƚƌĂƟŽŶĨĞĞƐ͕ƚƌĂĚŝŶŐĨĞĞƐ
ĂŶĚŝŶǀĞƐƚŵĞŶƚĐƵƐƚŽĚLJĨĞĞƐ͘
͚WƌŝĐĞŶĞĞĚƐƚŽďĞĐŽŶƐŝĚĞƌĞĚ
ŝŶƌĞůĂƟŽŶƚŽƚŚĞƐĞƌǀŝĐĞůĞǀĞůƐ
ĂŶĚƌĞǀŝĞǁƐŽĨƚŚĞƉůĂƞŽƌŵƐ
LJŽƵ͛ƌĞǀĞƫŶŐĂƐĐŚĞĂƉĞƐƚŵŝŐŚƚ
ŶŽƚŶĞĐĞƐƐĂƌŝůLJďĞďĞƐƚ͘dŚĞ
ĨŽĐƵƐƐŚŽƵůĚďĞŽŶǀĂůƵĞĨŽƌ
ŵŽŶĞLJ͕͛ƐĂLJƐWƵƌƐůŽǁ͘
MONEY MATTERS
STARTING TO INVEST
Once your stocks and shares ISA
ŝƐƵƉĂŶĚƌƵŶŶŝŶŐLJŽƵĐĂŶďĞŐŝŶ
ĐŚŽŽƐŝŶŐLJŽƵƌŝŶǀĞƐƚŵĞŶƚƐ͘
/ƚ͛ƐĂŐŽŽĚŝĚĞĂƚŽƚŚŝŶŬĂďŽƵƚ
ǁŚLJLJŽƵ͛ƌĞŝŶǀĞƐƟŶŐĂŶĚĨŽƌŚŽǁ
long. This will help you decide
which assets could help you
ŵĞĞƚLJŽƵƌŝŶǀĞƐƚŵĞŶƚŐŽĂůƐ͘
‘If you’re saving for a house
deposit in the near future your
ĂƉƉĞƟƚĞĨŽƌƌŝƐŬǁŝůůďĞůŽǁĞƌ
ʹƚŚĞůĂƐƚƚŚŝŶŐĂŚŽƵƐĞďƵLJĞƌ
needs is a sudden fall in the
ƐƚŽĐŬŵĂƌŬĞƚƌĞĚƵĐŝŶŐƚŚĞŝƌ
ŝŶǀĞƐƚŵĞŶƚƌŝŐŚƚǁŚĞŶƚŚĞLJ
ŶĞĞĚƚŽĂĐĐĞƐƐƚŚĞŵŽŶĞLJ͕͛
Purslow explains.
/ĨLJŽƵƌŝŶǀĞƐƚŵĞŶƚŐŽĂůŝƐ
ůŽŶŐͲƚĞƌŵ͕ĨŽƌĞdžĂŵƉůĞƐĂǀŝŶŐ
ĨŽƌƌĞƟƌĞŵĞŶƚ͕LJŽƵĐĂŶĂīŽƌĚƚŽ
ƚĂŬĞŽŶŵŽƌĞƌŝƐŬ͘
/ĨLJŽƵ͛ƌĞĂůĞƐƐĐŽŶĮĚĞŶƚ
investor or are looking for lower
ƌŝƐŬLJŽƵĐŽƵůĚĐŽŶƐŝĚĞƌĂŵƵůƟͲ
asset fund. The charges tend
ƚŽďĞŚŝŐŚĞƌƚŚĂŶƌĞŐƵůĂƌĨƵŶĚƐ
ďƵƚƚŚĞLJĂƌĞĂŶĞĂƐLJǁĂLJŽĨ
ĚŝǀĞƌƐŝĨLJŝŶŐLJŽƵƌƉŽƌƞŽůŝŽ͘
͚dŚĞLJŽīĞƌĞdžƉŽƐƵƌĞƚŽĂ
ďƌŽĂĚĞƌŵŝdžŽĨĂƐƐĞƚĐůĂƐƐĞƐ͕
sectors and regions while also
ƐƉƌĞĂĚŝŶŐƌŝƐŬĂŶĚŽīĞƌŝŶŐĂ
steadier overall return than if
you were to invest in individual
ĂƐƐĞƚƐ͕͛WƵƌƐůŽǁƐĂLJƐ͘
Passive funds – trackers or ETFs
ʹĂƌĞƵƐƵĂůůLJĐŚĞĂƉĞƌƚŚĂŶĂĐƟǀĞ
funds and give a return that
ŵŝƌƌŽƌƐĂŶŝŶĚĞdž͘ĐƟǀĞĨƵŶĚƐ
ĂƌĞŵŽƌĞĞdžƉĞŶƐŝǀĞďƵƚƚŚĞƌĞŝƐ
ƚŚĞƉŽƐƐŝďŝůŝƚLJŽĨƚŚĞŵĂŶĂŐĞƌ
ŽƵƚƉĞƌĨŽƌŵŝŶŐƚŚĞŝŶĚĞdž͘
/ĨLJŽƵĚŽŶ͛ƚǁĂŶƚƚŽƌĞƐĞĂƌĐŚ͕
ĐŚŽŽƐĞĂŶĚŵŽŶŝƚŽƌŝŶǀĞƐƚŵĞŶƚƐ
LJŽƵƌƐĞůĨ͕ǁŚLJŶŽƚƐĞĞŝĨLJŽƵƌ/^
ƉƌŽǀŝĚĞƌŽīĞƌƐƚŚĞŝƌŽǁŶĨƵŶĚƐ
ĂƐƚŚĞƐĞĂƌĞƵƐƵĂůůLJƌŝƐŬͲƌĂƚĞĚ͕ƐŽ
LJŽƵĐĂŶĮŶĚŽŶĞƚŚĂƚŵĂƚĐŚĞƐ
LJŽƵƌƌŝƐŬƉƌŽĮůĞ͘;WͿ
05 October 2017 | SHARES | 33
 MONEY MATTERS
How much are YOU saving
for retirement?
New figures show more people are saving than ever before but the monetary
amount may still be inadequate
L
ast week we were treated
ƚŽĂƐůĞǁŽĨƐƚĂƟƐƟĐƐ
ĨƌŽŵďŽƚŚƚŚĞKĸĐĞĨŽƌ
EĂƟŽŶĂů^ƚĂƟƐƟĐƐ;KE^ͿĂŶĚ,D
ZĞǀĞŶƵĞΘƵƐƚŽŵƐ;,DZͿ͘
dŚĞĮŐƵƌĞƐƉĂŝŶƚĂĨĂƐĐŝŶĂƟŶŐ
ƉŝĐƚƵƌĞŽĨƚŚĞǁĂLJƌĞƟƌĞŵĞŶƚ
ŝƐĐŚĂŶŐŝŶŐŝŶƚŚĞh<͕ĂƐǁĞůů
ĂƐƚŚĞĐŚĂůůĞŶŐĞƐĨĂĐĞĚďLJďŽƚŚ
ŝŶĚŝǀŝĚƵĂůƐĂŶĚŐŽǀĞƌŶŵĞŶƚƐ͘
,ĞƌĞĂƌĞŵLJƚŚƌĞĞďŝŐ
ƚĂŬĞĂǁĂLJƐĨƌŽŵƚŚĞŽĸĐŝĂů
ŶƵŵďĞƌƐ͗
1 MORE PEOPLE ARE SAVING
THAN EVER BEFORE
h<ƐĂǀŝŶŐƐƌĂƚĞƐǁĞƌĞŝŶƚŚĞƉŝƚƐ
ŝŶƚŚĞĂŌĞƌŵĂƚŚŽĨƚŚĞϮϬϬϳͬϬϴ
ĮŶĂŶĐŝĂůĐƌĂƐŚ͘/ŶϮϬϭϭͬϭϮϱ͘ϯŵ
ƉĞŽƉůĞǁĞƌĞƐĂǀŝŶŐƚŚƌŽƵŐŚ
ƉĞƌƐŽŶĂůƉĞŶƐŝŽŶƐ͕ƚŚĞůŽǁĞƐƚ
ĮŐƵƌĞŽŶƌĞĐŽƌĚ͘
Fast forward to the data for
ϮϬϭϱͬϭϲƉƵďůŝƐŚĞĚůĂƐƚǁĞĞŬĂŶĚ
ƉĞŶƐŝŽŶƐĐŚĞŵĞŵĞŵďĞƌƐŚŝƉ
ŚĂƐũƵŵƉĞĚďLJĂŵĂƐƐŝǀĞϳϬй
ƚŽϵŵ͘dŚĂƚ͛Ɛϯ͘ϳŵĞdžƚƌĂƉĞŽƉůĞ
ƐĂǀŝŶŐĨŽƌƌĞƟƌĞŵĞŶƚ͘
dŚĞŵĂŝŶĚƌŝǀĞƌŝƐĂƵƚŽŵĂƟĐ
ĞŶƌŽůŵĞŶƚ͕ĂƌĞĨŽƌŵƉƌŽŐƌĂŵŵĞ
ůĂƵŶĐŚĞĚŝŶϮϬϭϮƚŚĂƚǁŝůů
ĞǀĞŶƚƵĂůůLJŵĞĂŶĂůůĞŵƉůŽLJĞƌƐ
ŚĂǀĞƚŽƉƵƚǁŽƌŬĞƌƐĂŐĞĚϮϮ
ŽƌŽǀĞƌŝŶƚŽĂƉĞŶƐŝŽŶƐĐŚĞŵĞ͘
WĞŽƉůĞĂƌĞĨƌĞĞƚŽŽƉƚŽƵƚŽĨ
ƚŚĞŝƌǁŽƌŬƉůĂĐĞƐĐŚĞŵĞďƵƚ
ƐŽĨĂƌŵŽƐƚ;ĂƌŽƵŶĚŶŝŶĞŝŶϭϬͿ
ŚĂǀĞŶ͛ƚĚŽŶĞƐŽ͘
tŚŝůĞƐŽŵĞǁŽƌŬĞƌƐ͕
ŝŶĐůƵĚŝŶŐůŽǁͲĞĂƌŶĞƌƐĂŶĚƚŚĞ
ƐĞůĨͲĞŵƉůŽLJĞĚ͕ĂƌĞĐƵƌƌĞŶƚůLJ
34 | SHARES | 05 October 2017
Helping you with personal finance issues
ĞdžĐůƵĚĞĚĨƌŽŵĂƵƚŽͲĞŶƌŽůŵĞŶƚ͕
ƚŚĞƌĞŝƐŶŽĚŽƵďƟŶŐƚŚĞ
ŝŵƉĂĐƚƚŚĞĐŚĂŶŐĞƐŚĂǀĞŚĂĚŝŶ
ƌĞǀĞƌƐŝŶŐƚŚĞƉŽƐƚͲĐƌĂƐŚĚĞĐůŝŶĞ
ŝŶƉĞŶƐŝŽŶƐĐŚĞŵĞŵĞŵďĞƌƐŚŝƉ͘
2 PEOPLE AREN’T
SAVING ENOUGH
ĐĐŽƌĚŝŶŐƚŽƚŚĞKE^͕ĂǀĞƌĂŐĞ
ĐŽŶƚƌŝďƵƟŽŶƐ;ŵĞŵďĞƌƐƉůƵƐ
ĞŵƉůŽLJĞĞƐͿŝŶƚŽŽĐĐƵƉĂƟŽŶĂů
ƉĞŶƐŝŽŶƐĐŚĞŵĞƐƐƚĂŶĚĂƚũƵƐƚ
ϰ͘ϮйŽĨƉĞŶƐŝŽŶĂďůĞƐĂůĂƌLJ͘
/ƚ͛ƐƉĂƌƟĐƵůĂƌůLJǁŽƌƌLJŝŶŐƚŚĂƚ
ŵĞŵďĞƌĐŽŶƚƌŝďƵƟŽŶƐĚƌŽƉƉĞĚ
ĨƌŽŵϭ͘ϱйŝŶϮϬϭϱƚŽϭйŝŶϮϬϭϲ͘
ǀĞŶǁŝƚŚϰϬLJĞĂƌƐŽĨƐĂǀŝŶŐƐ
ŽŶĂŶĂǀĞƌĂŐĞh<ƐĂůĂƌLJƚŚĂƚŝƐ
ŐŽŝŶŐƚŽŐĞƚLJŽƵĂƉĞŶƐŝŽŶƉŽƚ
ŽĨĂƌŽƵŶĚάϭϮϱ͕ϬϬϬ͘dŚĂƚ͛ƐĂ
ŚĞĂůƚŚLJĂŵŽƵŶƚďƵƚŶŽǁŚĞƌĞ
ŶĞĂƌĞŶŽƵŐŚƚŽƉƌŽǀŝĚĞĂĚĞĐĞŶƚ
ŝŶĐŽŵĞĨŽƌϯϬLJĞĂƌƐŽĨƌĞƟƌĞŵĞŶƚ͘
dŚŝƐǁŝůůĞĚŐĞƵƉǁĂƌĚƐĂƐ
ŵŝŶŝŵƵŵĂƵƚŽͲĞŶƌŽůŵĞŶƚ
ĐŽŶƚƌŝďƵƟŽŶƐĂƌĞĚƵĞƚŽ
ƌŝƐĞƚŽϴйďLJϮϬϭϵ;ϰйĨƌŽŵ
ƚŚĞĞŵƉůŽLJĞĞ͕ϯйĨƌŽŵƚŚĞ
ĞŵƉůŽLJĞƌĂŶĚϭйŝŶƚĂdžƌĞůŝĞĨͿ͕
ďƵƚĞǀĞŶƚŚŝƐǁŽŶ͛ƚďĞĞŶŽƵŐŚ
ƚŽƉƌŽǀŝĚĞĂŐŽŽĚƌĞƟƌĞŵĞŶƚ
ŝŶĐŽŵĞĨŽƌŵŽƐƚƉĞŽƉůĞ͘
3 THE COST OF PENSION
TAX RELIEF IS GOING UP
dĂdžƌĞůŝĞĨŝŶƚŚĞh<ŝƐŐƌĂŶƚĞĚ
ďĂƐĞĚŽŶLJŽƵƌƚĂdžďĂŶĚŽƌ
͚ŵĂƌŐŝŶĂůƌĂƚĞ͛͘^ŽĂďĂƐŝĐͲƌĂƚĞ
ƚĂdžƉĂLJĞƌŐĞƚƐϮϬйƚĂdžƌĞůŝĞĨ͕
ŚŝŐŚĞƌͲƌĂƚĞϰϬйĂŶĚĂĚĚŝƟŽŶĂůͲ
ƌĂƚĞϰϱй͘
tŝƚŚĚƌĂǁĂůƐĂƌĞƚĂdžĞĚĂƚLJŽƵƌ
ŵĂƌŐŝŶĂůƌĂƚĞ͕ďƵƚƉĞŽƉůĞƚĞŶĚƚŽ
ƉĂLJůĞƐƐƚĂdžŽŶƚŚĞǁĂLJŽƵƚƚŚĂŶ
ƚŚĞǁĂLJŝŶďĞĐĂƵƐĞƚŚĞŝƌŝŶĐŽŵĞ
ŶĞĞĚƐŝŶƌĞƟƌĞŵĞŶƚĂƌĞůŽǁĞƌ͘
tŝƚŚŵŽƌĞƉĞŽƉůĞƐĂǀŝŶŐŝŶ
ƉĞŶƐŝŽŶƐ͕ƚŚĞŶĞƚƌĞƐƵůƚŝƐĂƌŝƐĞ
ŝŶƚŚĞĂŵŽƵŶƚƚŚĞ'ŽǀĞƌŶŵĞŶƚ
ƐƉĞŶĚƐŽŶƚĂdžƌĞůŝĞĨƚŽĂůŵŽƐƚ
άϮϱďŶŝŶϮϬϭϲͬϭϳ͘
^ƉĞĐƵůĂƟŽŶŚĂƐĂůƌĞĂĚLJ
ƐƚĂƌƚĞĚƐƵŐŐĞƐƟŶŐƉĞŶƐŝŽŶƚĂdž
ƌĞůŝĞĨĐŽƵůĚďĞĐƵƚďĂĐŬŝŶƚŚĞ
ƵĚŐĞƚůĂƚĞƌƚŚŝƐLJĞĂƌ͘dŚƵƐŝĨLJŽƵ
ǁĞƌĞĂůƌĞĂĚLJƉůĂŶŶŝŶŐƚŽƉĂLJŝŶƚŽ
LJŽƵƌƉĞŶƐŝŽŶŝŶƚŚĞĐƵƌƌĞŶƚƚĂdž
LJĞĂƌ͕ŝƚŵĂLJďĞǁŽƌƚŚĚŽŝŶŐƐŽ
ďĞĨŽƌĞƚŚĞƵĚŐĞƚ͘
dŽŵ^ĞůďLJ͕
^ĞŶŝŽƌŶĂůLJƐƚ͕:Ğůů
The opportunity
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 LARGER COMPANIES

The power of
Ted Baker’s brand
Global growth potential and retail resilience are reasons to invest

A recent rebound at Ted Baker (TED) could

mark the start of a sustained rally for shares
in the UK-based premium lifestyle brand.
A buyer with a £31 price target, Liberum says
its growth forecasts are prudently pitched and we
believe the shares are worth buying at £26.77 as
half year results (10 Oct) could spark upgrades.
dĞĚĂŬĞƌŝƐĂƋƵŝŶƚĞƐƐĞŶƟĂůůLJƌŝƟƐŚďƌĂŶĚǁŝƚŚ
ĂƋƵŝƌŬLJĨĂƐŚŝŽŶŽīĞƌŝŶŐ͕ĨĂŵĞĚĨŽƌŝƚƐƵŶǁĂǀĞƌŝŶŐ
ĂƩĞŶƟŽŶƚŽĚĞƚĂŝůĂŶĚƋƵĂůŝƚLJ͘/ƚƐƌĂŶŐĞƐƉĂŶƐ
women’s and men’s clothing and accessories.
Global brand sales have more than tripled to
άϭ͘ϭďŶƉůƵƐƐŝŶĐĞϮϬϬϵ͕ĚĞŵŽŶƐƚƌĂƟŶŐdĞĚĂŬĞƌ
is a leading global premium lifestyle brand rather
than a mere retailer.
GLOBAL GROWTH SCOPE
Liberum likes Ted’s scope for growth in the
ŽƵƚƉĞƌĨŽƌŵŝŶŐĂīŽƌĚĂďůĞůƵdžƵƌLJƐĞŐŵĞŶƚƐŽĨ
ƚŚĞŐůŽďĂůĐůŽƚŚŝŶŐŵĂƌŬĞƚ͘/ƚĞdžƉůĂŝŶƐƚŚĂƚƚŚĞ
ƌĞƚĂŝůŝŶĚƵƐƚƌLJŝƐƐĞĞŝŶŐĂƉŽůĂƌŝƐĂƟŽŶŽĨŵĂƌŬĞƚƐ
ďĞƚǁĞĞŶďƌĂŶĚƐǁŝƚŚĂƐƚƌŽŶŐ͕ĚŝƐƟŶĐƚŵĂƌŬĞƚ
ƉŽƐŝƟŽŶƐƵĐŚĂƐdĞĚĂŬĞƌĂŶĚǀĂůƵĞͲůĞĚƉůĂLJĞƌƐ͕
ǁŝƚŚůĞƐƐĚĞĮŶĞĚďƌĂŶĚƐďĞŝŶŐůĞŌŽƵƚŝŶƚŚĞĐŽůĚ͘
Ted is successfully using e-commerce to enter
new markets; it has taken ownership of the bulk
ŽĨŝƚƐǁŚŽůĞƐĂůĞƌĞůĂƟŽŶƐŚŝƉƐ͖ĂŶĚŝƚďŽĂƐƚƐĂ
ƉƌŽĮƚĂďůĞĂŶĚŐƌŽǁŝŶŐůŝĐĞŶĐĞďƵƐŝŶĞƐƐ͘džĐŝƟŶŐůLJ͕
Ted Baker has barely scratched the surface of its
ŝŶƚĞƌŶĂƟŽŶĂůŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƚLJ͘
RETAIL RESILIENCE
While the outlook for UK retail is challenging, the
£1.17bn cap’s
TED BAKER
model is more FTSE ALL SHARE
Source: Thomson Reuters Datastream
ƌĞƐƉĞĐƟǀĞůLJ͕ƚŚĞƌŝƐŬŽĨďĞĐŽŵŝŶŐŽǀĞƌͲƐƉĂĐĞĚ
is limited.
͚DŽƌĞŽǀĞƌĐŝƌĐĂϲϬйŽĨd͛ƐĞƐƚĂƚĞŝƐƌƵŶ
ƚŚƌŽƵŐŚĐŽŶĐĞƐƐŝŽŶƐ͕ĂŶĚƚŚŝƐƉƌŽǀŝĚĞƐƉƌŽĮƚĂŶĚ
ůŽƐƐƉƌŽƚĞĐƟŽŶƚŚƌŽƵŐŚƚƵƌŶŽǀĞƌͲďĂƐĞĚƌĞŶƚƐ͕ŚĂƐ
lower capital requirements, and provides targeted
ĐƵƐƚŽŵĞƌĞdžƉŽƐƵƌĞ͛͘
dŚĞďƌŽŬĞƌ͛ƐƉƌŝĐĞƚĂƌŐĞƚŝŵƉůŝĞƐϭϱ͘ϴйŶĞĂƌͲ
term upside. For the year to January 2018
>ŝďĞƌƵŵĨŽƌĞĐĂƐƚƐŝŵƉƌŽǀĞĚƉƌĞͲƚĂdžƉƌŽĮƚŽĨ
άϳϯ͘ϱŵ;ϮϬϭϳ͗άϲϱ͘ϴŵͿ͕ƌŝƐŝŶŐƚŽάϴϯ͘ϯŵĂŶĚ
άϵϰ͘ϰŵŝŶϮϬϭϵĂŶĚϮϬϮϬƌĞƐƉĞĐƟǀĞůLJ͘
>ŝďĞƌƵŵĂůƐŽĞdžƉůĂŝŶƐ͚ƚŚĞŐƌŽƵƉŚĂƐƉĂƐƐĞĚ
ƚŚĞƉĞĂŬŽĨŝƚƐŝŶǀĞƐƚŵĞŶƚĐLJĐůĞǁŝƚŚ/dƐLJƐƚĞŵƐ
ĂŶĚůŽŐŝƐƟĐƐĂůůŵĂƚĞƌŝĂůůLJƵƉŐƌĂĚĞĚŝŶƚŚĞůĂƐƚ
ĮǀĞLJĞĂƌƐ͕ƌĞƐƵůƟŶŐŝŶĂďƵƐŝŶĞƐƐƉƌŝŵĞĚĨŽƌƚŚĞ
ĨƵƚƵƌĞ͘dĞĚĂŬĞƌŚĂƐƌĞĂĐŚĞĚĂŶŝŶŇĞĐƟŽŶƉŽŝŶƚ
ǁŚĞƌĞĐƵŵƵůĂƟǀĞĨƌĞĞĐĂƐŚŇŽǁŽĨάϭϭϱŵǁŝůůďĞ
ŐĞŶĞƌĂƚĞĚŽǀĞƌƚŚĞŶĞdžƚƚŚƌĞĞLJĞĂƌƐǀĞƌƐƵƐάϳϭŵ
generated over the last ten.’
ŝǀŝĚĞŶĚƉƌŽŐƌĞƐƐŝŽŶƚŽϱϴ͘ϲƉ;ϮϬϭϳ͗ϱϯ͘ϲƉͿŝƐ
on the cards this year, a payment covered more
than twice by forecast earnings of 125p. The
shareholder reward is set to build to 66.4p and
75.3p over the following years.
SHARES SAYS: È

3100
defensive 3000
We’re bullish on Ted Baker at £26.77 for the global
than peers. 2900 growth potential of the brand and the high margins
As Liberum 2800 and strong cash flows it generates. Looming half
2700
ĞdžƉůĂŝŶƐ͚͗tŝƚŚ 2600 year results (10 Oct) could surprise on the upside
only 32 UK and 2500 and spark earnings upgrades. (JC)
ĨŽƵƌƵƌŽƉĞĂŶ 2400
2300
Rebased to first
own stores, 2016 2017 BROKER SAYS: 9 1 1

36 | SHARES | 05 October 2017

 SMALLER COMPANIES

Shares in Trinity could

‘triple in value’ says broker
Production, profit and cash flow are heading in the right direction

T ight control on costs and increasing

ƉƌŽĚƵĐƟŽŶĐŽƵůĚŝŵƉƌŽǀĞ
ƉƌŽĮƚĂďŝůŝƚLJĂŶĚĐĂƐŚŇŽǁĂƚ
Trinidad oil producer dƌŝŶŝƚLJdžƉůŽƌĂƟŽŶ
ΘWƌŽĚƵĐƟŽŶ;dZ/E͗/DͿ and provide a TARGETING
ƉƌŽĚƵĐƟŽŶǁĞůůƐŽŶƚŚĞŽŶƐŚŽƌĞ
ƉŽƌƞŽůŝŽ͘džĞĐƵƟǀĞĐŚĂŝƌŵĂŶƌƵĐĞ
ŝŶŐǁĂůůƚĞůůƐShares the company may
ĚƌŝůůŽŶŝƚƐŽīƐŚŽƌĞdƌŝŶƚĞƐĮĞůĚŝŶϮϬϭϴ͘
At current oil prices of around $56 per
catalyst for the share price. PRODUCTION OF barrel Trinity should be able to deliver
Trinity completed a $15m 3,000 ĚĞĐĞŶƚƉƌŽĮƚĂƐƚŚĞĐŽŵƉĂŶLJďĞůŝĞǀĞƐ
restructuring earlier this year which has BARRELS OF OIL it can make money above an oil price of
reduced net debt from $34.3m to just PER DAY $32.8 per barrel.
$1.2m. The company’s cash balance has
ĂůƐŽŝŵƉƌŽǀĞĚďLJϭϮϱйƚŽΨϭϭ͘ϱŵĂƐŽĨ DdhZK/>E'^/Eh^dZz
30 June. Trinidad has a mature oil and gas
The share price enjoyed a rally earlier ŝŶĚƵƐƚƌLJ͘dŚĞĮƌƐƚŽŝůĚĞƉŽƐŝƚƐǁĞƌĞ
in 2017 but has stalled over the past ĚŝƐĐŽǀĞƌĞĚŝŶϭϴϲϲĂŶĚƚŚĞĮƌƐƚǁĞůů
ƐŝdžŵŽŶƚŚƐ͘tĞƚŚŝŶŬŶŽǁŝƐĂŐŽŽĚƟŵĞƚŽďƵLJ ǁĂƐĚƌŝůůĞĚŝŶϭϴϲϳǁŝƚŚĐŽŶƟŶƵŽƵƐƉƌŽĚƵĐƟŽŶ
ĂƐdƌŝŶŝƚLJŝƐƚĂƌŐĞƟŶŐƚŚĞ͚ůŽǁŚĂŶŐŝŶŐĨƌƵŝƚ͛ŝŶŝƚƐ beginning as early as 1908.
ƉŽƌƞŽůŝŽ͕ĂĐĐŽƌĚŝŶŐƚŽďƌŽŬĞƌĂŶƚŽƌ&ŝƚnjŐĞƌĂůĚ͘ Trinity is a material player in this industry –
ŶŝŶĐƌĞĂƐĞŝŶŽƉĞƌĂƟŶŐĂĐƟǀŝƟĞƐĂĐƌŽƐƐŝƚƐ ĂĐĐŽƵŶƟŶŐĨŽƌŵŽƌĞƚŚĂŶϯйŽĨƚŚĞŝƐůĂŶĚ͛ƐƚŽƚĂůŽŝů
core assets during July and August has restored ƉƌŽĚƵĐƟŽŶ͘
ƉƌŽĚƵĐƟŽŶůĞǀĞůƐƚŽϮ͕ϲϬϬďĂƌƌĞůƐŽĨŽŝůƉĞƌĚĂLJ ŝŶŐǁĂůůƐĂLJƐĂůƚŚŽƵŐŚƚŚĞƌĞŐƵůĂƚŽƌLJƐLJƐƚĞŵĐĂŶ
(bopd). That puts it on track to hit year-end ƚĂŬĞƟŵĞƚŽŶĂǀŝŐĂƚĞ͕͚ŝƚŝƐĂůƐŽǀĞƌLJƉƌŽĐĞƐƐͲĚƌŝǀĞŶ͕
guidance of between 2,600 and 2,800 bopd and a so you know where you stand’.
12-month target of 3,000 bopd. The island has plenty of infrastructure including
The target should mainly be achieved by low-cost roads and equipment. The sub-surface is also very
ǁŽƌŬŽŶĞdžŝƐƟŶŐǁĞůůƐĂŶĚĚƌŝůůŝŶŐƐŽŵĞĂĚĚŝƟŽŶĂů well understood because there has been so much
ĚƌŝůůŝŶŐ͘dŚŝƐƌĞĚƵĐĞƐƚŚĞƌŝƐŬŽĨƉƌŽĚƵĐƟŽŶǁĞůůƐ
underperforming.
ŝŶŐǁĂůůŵĂLJĂůƌĞĂĚLJďĞĨĂŵŝůŝĂƌƚŽŝŶǀĞƐƚŽƌƐŝŶ
the UK oil and gas sector. He founded North Sea-
ĨŽĐƵƐĞĚsĞŶƚƵƌĞWƌŽĚƵĐƟŽŶŝŶϭϵϵϳ͘dŚĞĐŽŵƉĂŶLJ
ǁĂƐŇŽĂƚĞĚŽŶƚŚĞƐƚŽĐŬŵĂƌŬĞƚĂƚϭϳϬƉŝŶϮϬϬϮ
ĂŶĚƐƵďƐĞƋƵĞŶƚůLJĂĐƋƵŝƌĞĚďLJĞŶƚƌŝĐĂŝŶƵŐƵƐƚ
ϮϬϬϵĨŽƌϴϰϱƉƉĞƌƐŚĂƌĞ͘ŝŶŐǁĂůůŝŶƐŝƐƚƐŚŝƐĐƵƌƌĞŶƚ
ĐŽŵƉĂŶLJŝƐ͚ŶŽƚĂŶŝĚĞĂ͖ŝƚŝƐĂǁĞůůͲĞƐƚĂďůŝƐŚĞĚ
ƉƌŽĮƚĂďůĞďƵƐŝŶĞƐƐ͛͘

SHARES SAYS: È
Buy at 12.35p. Cantor has a price target of 37p,
implying you could triple your money. (TS)

BROKER SAYS: 1 0 0

05 October 2017 | SHARES | 37

 SMALLER COMPANIES

S&U has smart approach

to motor finance
Small cap stock looks attractive despite market worries about its industry

D ŽƚŽƌĮŶĂŶĐĞƐƉĞĐŝĂůŝƐƚ^Θh;^h^ͿŽīĞƌƐĂ

ĂŶĂƩƌĂĐƟǀĞǀĂůƵĂƟŽŶ͘ZĞƐƚƌŝĐƟŽŶƐŽǀĞƌ
the type of borrower it accepts as a customer and
&ŝŶĂŶĐĞĚŽĞƐŶŽƚŽīĞƌWW͕ǁŝƚŚĂůůŽĨŝƚƐůŽĂŶƐ
ĚĞĐĞŶƚϱйƉƌŽƐƉĞĐƟǀĞLJŝĞůĚĂŶĚƚƌĂĚĞƐĂƚ made on a hire purchase basis with full repayment
made over the life of the loan thereby meaning
that there is no residual risk to S&U at the end of
ƚŚĞƚLJƉĞƐŽĨĮŶĂŶĐĞŝƚŽīĞƌƐŵĞĂŶŝƚŝƐůĞƐƐĞdžƉŽƐĞĚ the deal.
to the risks associated with the current credit boom ͚ůŽƐƐǁŽƵůĚƚŚĞƌĞĨŽƌĞŽŶůLJďĞŝŶĐƵƌƌĞĚƚŽƚŚĞ
in the car market, in our view. ĞdžƚĞŶƚƚŚĂƚĐƵƐƚŽŵĞƌƐǁĞƌĞƚŽĚĞĨĂƵůƚ͕ǁŝƚŚƚŚĞ
The company’s recently released results for ůĂƩĞƌƌĞƋƵŝƌŝŶŐĂƐŚĂƌƉƌŝƐĞŝŶƵŶĞŵƉůŽLJŵĞŶƚŝŶ
ƚŚĞƐŝdžŵŽŶƚŚƐƚŽϯϭ:ƵůLJŵĂŬĞĨŽƌĞŶĐŽƵƌĂŐŝŶŐ our view, which is not currently our central case.’
ƌĞĂĚŝŶŐ͘^Θh͛ƐƉƌĞͲƚĂdžƉƌŽĮƚƌĞĂĐŚĞĚάϭϰ͘ϯŵ͕ WWŝŶǀŽůǀĞƐĂĐƵƐƚŽŵĞƌƉĂLJŝŶŐĂůŽǁĞƌŵŽŶƚŚůLJ
ĂϮϬйŝŶĐƌĞĂƐĞLJĞĂƌͲŽŶͲLJĞĂƌ͘/ƚƐŵŽƚŽƌĮŶĂŶĐĞ amount during the contract period, typically
ďƵƐŝŶĞƐƐĞŶũŽLJĞĚŝƚƐϭϳƚŚĐŽŶƐĞĐƵƟǀĞLJĞĂƌŽĨ ďĞƚǁĞĞŶϮϰĂŶĚϰϴŵŽŶƚŚƐ͕ůĞĂǀŝŶŐĂĮŶĂů͚ďĂůůŽŽŶ
ŝŶĐƌĞĂƐĞĚƉƌŽĮƚ͘ payment’ at the end of the agreement. At this
ŚĂŝƌŵĂŶŶƚŚŽŶLJŽŽŵďĞƐƐĂLJƐŽĨ point they either buy the car outright or
ĂůůůŽĂŶĂƉƉůŝĐĂƟŽŶƐ͕ϳϬйĂƌĞĚĞĐůŝŶĞĚ
The ƐǁŝƚĐŚƚŚĞŝƌWWĂŐƌĞĞŵĞŶƚƚŽĂŶĞǁĐĂƌ͘
straight away due to S&U’s strict company is Advantage Finance’s loans are not
acceptance criteria. Of the remaining ‘significantly WWƐĂŶĚĂƌĞŵĂĚĞŽŶƚŚĞďĂƐŝƐƚŚĂƚĨƵůů
ϯϬй͕ŽŶůLJϯйǁŝůůďĞŐŝǀĞŶĮŶĂŶĐĞ͘ repayment will be made over the loan
dŚĞďĞŶĞĮƚŽĨƚŚŝƐƌŽďƵƐƚƵŶĚĞƌǁƌŝƟŶŐ undervalued’ period, usually up to four years.
ĂƉƉƌŽĂĐŚŝƐƌĞŇĞĐƚĞĚŝŶƚŚĞĐŽŵƉĂŶLJ͛Ɛ KŶĞƉŽƚĞŶƟĂůůŽŶŐͲƚĞƌŵƌŝƐŬĨŽƌƚŚĞ
strong track record. ďƵƐŝŶĞƐƐŝƐƚŚĞĞǀŽůƵƟŽŶŽĨƚŚĞĞůĞĐƚƌŝĐ
ǀĞŚŝĐůĞŝŶĚƵƐƚƌLJ͘/ĨĐŽŶǀĞŶƟŽŶĂůĐŽŵďƵƐƟŽŶĞŶŐŝŶĞ
AGGRESSIVE LENDING PRACTICES ELSEWHERE cars are replaced by hybrids and electrics which
There are well founded concerns about aggressive need less maintenance, there may be lower vehicle
ůĞŶĚŝŶŐƉƌĂĐƟĐĞƐŝŶĐĂƌĮŶĂŶĐŝŶŐ͕ĂůƚŚŽƵŐŚƚŚĞƐĞ ƚƵƌŶŽǀĞƌĂŶĚŚĞŶĐĞůĞƐƐĚĞŵĂŶĚĨŽƌĐĂƌĮŶĂŶĐĞ͘
tend to be at the prime end of the market. Ben Thefault, analyst at Arden Partners, says
'ĂƌLJ'ƌĞĞŶǁŽŽĚ͕ĂŶĂŶĂůLJƐƚĂƚ^ŚŽƌĞĂƉŝƚĂů͕ ƚŚĞĐŽŵƉĂŶLJŝƐ͚ƐŝŐŶŝĮĐĂŶƚůLJƵŶĚĞƌǀĂůƵĞĚ͛ĂƐŝƚŝƐ
ƐĂLJƐŵĂŶƵĨĂĐƚƵƌĞƌƐ͛ĮŶĂŶĐĞĐŽŵƉĂŶŝĞƐĐŽŶƟŶƵĞ ǁĞŝŐŚĞĚĚŽǁŶďLJƐĞĐƚŽƌƐĞŶƟŵĞŶƚ͘
ƚŽŽīĞƌĐŚĞĂƉƉĞƌƐŽŶĂůĐŽŶƚƌĂĐƚƉůĂŶ;WWͿĚĞĂůƐŝŶ Using Thefault’s forecasts, at £20.75 S&U is
order to help sell new cars. ƚƌĂĚŝŶŐŽŶϭϬ͘ϯƟŵĞƐ:ĂŶƵĂƌLJϮϬϭϴĞĂƌŶŝŶŐƐƉĞƌ
,ĞĂĚĚƐ͚͗LJĐŽŶƚƌĂƐƚ͕;^ΘhͲŽǁŶĞĚͿĚǀĂŶƚĂŐĞ ƐŚĂƌĞŽĨϮϬϭ͘ϱƉ͘;^Ϳ

38 | SHARES | 05 October 2017

 NOW IS THE TIME TO FOCUS ON YOUR INVESTMENT PORTFOLIO
Looking for new companies to invest in? Come and join Shares and AJ Bell Media at their evening event in London on
Thursday 19 October 2017 and meet directors from Avacta, Custodian REIT, Non-Standard Finance and Savannah Resources.
Sponsored by

London – Thursday 19 Oct 2017

Companies presenting

Avacta (AVCT) Alastair Smith, CEO

Avacta’s focus is on its proprietary Affimer® platform technology, a novel engineered alternative to antibodies, that
has wide application in diagnostics, therapeutics and research.
Antibodies dominate markets worth more than $75bn despite their shortcomings. Affimer technology, based on a
small, robust protein, can be quickly generated to bind with high specificity and affinity to a wide range of targets,
addressing many of the limitations of antibodies.

Custodian REIT (CREI) Richard Shepherd-Cross, MD

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock
Exchange on 26 March 2014. Its portfolio comprises properties predominantly let to institutional grade tenants on
long leases throughout the UK and is characterised by properties with individual property values of less than £10
million at acquisition.

Non-Standard Finance (NSF) Peter Reynolds, Director IR & Communications

NSF’s businesses offer credit to the c.10 million UK adults not served by mainstream financial services businesses.
Focused on branch-based lending, home credit and guaranteed loans, the Group’s goal is to deliver excellent customer
outcomes and attractive returns for shareholders.

Savannah Resources (SAV) David Archer, CEO

Savannah Resources Plc is a multi-commodity development company focused on building cash generative and
profitable mining operations. The Company operates a strategic portfolio of assets, spanning near term production
potential and longer term development opportunities in Oman, Mozambique, Portugal and Finland.

Follow this link www.sharesmagazine.co.uk/events for full details.

REGISTER FOR YOUR COMPLIMENTARY TICKET TODAY

During the event and afterwards over drinks, investors Event details
will have the chance to: Location: Novotel Tower Bridge,
London EC3N 2NR

Discover new investment opportunities Registrations 18:00

Presentations to start at 18:30
Complimentary drinks and buffet available after the
presentations
Get to know the companies better
Contact

Chris Williams, Spotlight Manager

Talk with the company directors chris.williams@sharesmagazine.co.uk
0207 378 4402

Register free now

www.sharesmagazine.co.uk/events
 WEEK AHEAD

FRIDAY 6 OCTOBER TED BAKER TED TRADING STATEMENTS

ECONOMICS REDSTONECONNECT REDS HAYS HAS
UK TRADING STATEMENTS AGMS
HALIFAX HOUSE PRICE INDEX EASYHOTEL EZH
SKY SKY
US MARSTON’S MARS
NON-FARM PAYROLL EX-DIVIDEND
AGMS
AGMS BEGBIES TRAYNOR BEG 1.6P
MORTICE MORT
SAN LEON ENERGY SLE CURTIS BANKS CBP 1.5P
SCANCELL SCLP
CITY OF LONDON INVESTMENT CLIG 17P
ABBEY ABBY THE DIVERSE INCOME TRUST DIVI CENTRICA CNA 3.6P
MONDAY 9 OCTOBER WEDNESDAY 11 OCTOBER CPL RESOURCES CPS €0.06
FINALS FINALS CHARLES TAYLOR CTR 3.31P
CAP-XX CPX PROACTIS PHD DAEJAN DJAN 63P
PLANT IMPACT PIM F&C PRIVATE
INTERIMS
YOUGOV YOU EQUITY TRUST FPEO 6.92P
VERTU MOTORS VTU KERRY GROUP KYGA €0.19
TRADING STATEMENTS
CENTAMIN CEY TRADING STATEMENTS MORGAN SINDALL MGNS 16P
TRINITY MIRROR TNI COUNTRYSIDE PROPERTIES CSP ONESAVINGS BANK OSB 3.5P
XP POWER XPP MONDI MNDI PHOTO-ME
AGMS PAGEGROUP PAGE INTERNATIONAL PHTM 3.94P
QUIZ QUIZ SPIRAX-SARCO SPX 25.5P
VIETNAM INFRASTRUCTURE VNIL
AGMS STAFFLINE STAF 11P
TUESDAY 10 OCTOBER HARGREAVES LANSDOWN HL. SPECTRIS SXS 19P
FINALS TP ICAP TCAP 5.6P
VOLUTION GROUP FAN THURSDAY 12 OCTOBER
FINALS
FRIDAY 13 OCTOBER
INTERIMS TRADING STATEMENT
1SPATIAL SPA WH SMITH SMWH PROVIDENT FINANCIAL PFG
LIDCO LID INTERIMS
BOOKER BOOK Click here for complete diary
ALL EYES WILL BE ON Marston’s N BROWN BWNG www.sharesmagazine.co.uk/market-diary
(MARS) when it updates on
trading on 10 October. It hasn’t TWO OF THE largest recruitment
commented on the strength of firms on the market, PageGroup IT HAS BEEN one of the worst
its business since July when it (PAGE) and Hays (HAS), are set to ever years for doorstep lender
said its sales growth was ahead inform investors on how the jobs Provident Financial (PFG). Several
of the market. market is looking. profit warnings resulted in the
Since that announcement PageGroup will issue its firm’s valuation plummeting
its rival Greene King (GNK) trading update on 11 October and and the loss of its place in the
complained about having a Hays releases its update on the prestigious FTSE 100 index.
tough time. Greene King issued a following day. The next big test for the share
warning on 8 September saying Given that both firms have large price is just around the corner
sales had dropped, costs were international footprints, they and shareholders will hope it isn’t
going up and weak consumer should not be overly damaged another horror show. Provident
confidence was a major concern. by any potential weakness in the will issue a trading update on
Investors will want to know how UK economy. Friday 13 October.
Marston’s is surviving against
that troubling backdrop.

40 | SHARES | 05 October 2017

 INDEX

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All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE

KEY
• Main Market
• AIM
• Fund
• Investment Trust

AB Dynamics 23 Civitas Social Housing 7 Imperial Brands (IMB) 12 Phoenix Spree 31

(ABDP:AIM)  (CSH)  Independent 31 Deutschland (PSDL)
Aberdeen Frontier 30 CVS (CVSG:AIM) 9 Investment Trust (IIT) Provident Financial 40
Markets (AFMC) Debenhams (DEB)  14 International 6 (PFG)
AEW UK REIT (AEWU)  7 Draper Esprit 25 Consolidated Airlines Purplebricks 9
Allergy Therapeutics 11 (GROW:AIM) (IAG) (PURP:AIM)
(AGY:AIM) EasyJet (EZJ) 6, 20 ITM Power (ITM:AIM)  23 Quiz (QUIZ:AIM) 14
ASOS (ASC:AIM) 9 F&C Commercial 30 Johnson Matthey 24 Regional REIT (RGL)  31
Bacanora Minerals 26 Property Trust (FCPT)  (JMAT) Ricardo (RCDO) 22
(BCN:AIM) FDM (FDM) 17 Just Eat (JE.) 9 Rightmove (RMV) 9
Baillie Gifford 8 Fidelity 8 Royal Dutch Shell 24
Japanese Institutional Japan (RDSB)
(GB0006011133)  (GB0003371399)  Ryanair (RYA) 6
BHP Billiton (BLT) 26 First State Japan 8 S&U (SUS) 38
BlackRock Latin 30 Focus Fund
Scottish Mortgage 22, 31
American (BRLA) (GB00BWNGX432)
(SMT)
BlackRock 31 GKN (GKN) 22
Serco (SRP) 8
Throgmorton Trust Glencore (GLEN) 25
(THRG)  Marks & Spencer 14 Ted Baker (TED)  36
Greencore (GNC)  10 (MKS)
Bonmarche (BON) 14 Trinity Exploration & 37
Greene King (GNK) 40 Marston’s (MARS)  40 Production (TRIN:AIM) 
GYG (GYG:AIM) 9 Mercantile (MRC) 31 Vedanta Resources 26
Hays (HAS) 40 MJ Gleeson (GLE) 7 (VED)
Henderson Diversified 31 National Grid (NG.) 21 VPC Specialty 31
Income Trust (HDIV)  Lending Investments
Nexus Infrastructure 25
Horizonte Minerals 26 (VSL)
(NEXS:AIM) 
(HZM:AIM)  Wizz Air (WIZZ) 6
PageGroup (PAGE)  40
Hotel Chocolat 8 Woodford Patient 31
Perpetual Income & 30
BooHoo.com 9, 14 (CHOC:AIM) Capital Trust (WPCT)
Growth Investment
(BOO:AIM) Ideagen (IDEA:AIM) 8 XP Power (XPP) 12
Trust (PLI) 
City of London (CTY)  31 ZPG (ZPG) 9

05 October 2017 | SHARES | 41