Investor Snapshot - Annabel Brodie-Smith, Communications Director - The Association of Investment Companies

What was your first experience of investing?

Having completed a Masters at Syracuse University in New York focusing on economic development in China and Southeast Asia, I knew I was really interested in markets. That’s why I joined the AIC which was very different from my previous job at a big PR agency with a bar in reception. In my first role as Press Officer at the AIC I had to learn very quickly all about investment trusts.  My first investment experience was a £50 monthly investment in F&C Investment Trust in their saving scheme.  I choose F&C because of its global portfolio, it was the first ever investment trust established in 1868 and is still going strong, and I had met and liked the manager who was then Jeremy Tigue.  It served me very well and I sold it when I needed the money.

Has there been a person or resource you have found most helpful in your investment journey?

There have been a number of investment trust analysts who have helped me with my investment decisions over the years. Lots were really helpful to me at the beginning of my career – Peter Walls who now manages Unicorn Mastertrust, Alan Ray who works for Kepler, Alan Brierley who is an analyst at Investec, Charles Cade who is now an investment trust director and Hamish Buchan who has retired. I still really enjoy reading investment trust research and talking to analysts.  I like to know the whole story – the good and the bad – and then you can make up your mind. From a practical perspective the AIC website theaic.co.uk is a godsend when it comes to researching investment trusts.

What has been the riskiest investment you have made, or considered?

I have invested in a couple of investment trusts where sadly I did not realise quite how risky they really were. The small but painful list of Annabel’s investment abominations will have to remain a secret for now. However, one thing I’ve learned is not to invest with a manager without a long and proven track record in that area. And consider whether you really want to invest in a single country fund. Would a global or regional investment trust be a better and less risky option for you?

Have you had any investments that have performed extremely well or extremely poorly? If yes, what were they?

I’m pleased to say I have a much longer list of investment trusts that have performed extremely well. Of course, I work hard for all my member investment trusts and I hold around 20 investment trusts in my SIPP.  My top performer is HgCapital Trust in the Private Equity sector which invests in the boring side of technology – software or services that are critical for businesses. They have an excellent long-term performance record and are near the top of the AIC’s ‘ISA millionaire’ list of best performers. 

What’s next for your investing journey?

I am going to focus on building up my ISA investments because they are tax free on the way out as well as on the way in.  I’m not keen on inheritance tax being imposed on my pension and you can only take 25% of your pension tax free. Last year I invested in my first direct share, Burberry. It’s a one-off but fashion and luxury goods has always been an interest for me (not a surprise to the people who know me!). I’m very pleased with its performance so far.

What would you tell your 20-something self about investing? 

Make a start soon. Small regular investments in a diversified investment trust is the way to go. Don’t worry about it – just do it!

Thank you Annabel!

This interview is for information only and it is not investment advice. It is for use in the United Kingdom only. Investments and/or investment services may not be suitable for all investors. Capital is at risk and past performance is not an indicator of future performance.