The overwhelming consensus is that we will see a Labour victory in July and that at some point in the not-too-distant future the Bank of England will follow the European Central Bank in beginning to reduce interest rates. Against this positive backdrop we have kept turnover within the Fund to a minimum, happy to rely on the underlying companies within our portfolio to progress with business-as-usual.

We first became shareholders in AutoTrader while locked-up at home during those dark months of March and April 2020. Shares have more than doubled since then and AutoTrader’s results have hardly missed a beat. We say this not to blow our own trumpets, but to demonstrate just how robust a business AutoTrader is and how reliant on the platform their customers are. We have no crystal ball to tell you what the future may hold, but we can tell you that AutoTrader is in an exceptional position to face the years ahead.

Our investment in credit services leader Experian has also enjoyed a strong year. We tuned-into Experian’s results last week and were impressed to learn that their AI-enabled data analytics has given them a significant lead over competition and will be a feature of results for years to come. Experian have now overtaken both TransUnion and Equifax, their nearest rivals, in terms of revenue generated in North America.

Our positions in Croda and Spirax-Sarco remain somewhat unloved in the market. In both cases, the businesses have struggled to convince investors that they can move on from exceptional trading during the COVID years and that the future will see a return to steady growth. We believe that each company will indeed surprise the naysayers and that it is only a matter of time, but will remain vigilant on analysing the situation and holding management teams to account – there is no place for complacency here.
 

The above article has been prepared for investment professionals. Any other readers should note this content does not constitute advice or a solicitation to buy, sell, or hold any investment. We strongly recommend speaking to an investment adviser before taking any action based on the information contained in this article.

Please also note the value of investments and the income you get from them may fall as well as rise, and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.