On this episode of the IC Interviews, editor John Hughman speaks to the magazine’s regular investment trust columnist John Baron.
A former fund manager, John has provided updates on two live investment trust based portfolios for the Investors Chronicle since 2009, one focused on growth and the other on income.
John has recently completed an updated version of his book, the Financial Times Guide to Investment Trusts: Unlocking the City's Best Kept Secret.
In this interview, John explains why he favours investment trusts, how the techniques he uses to manage his portfolios have shielded them from the worst impacts of Covid-19, and why he’s top slicing technology and taking contrarian positions in commercial property and commodities.
Click on the links below to read the latest portfolio updates from John Baron
"I recently gave a talk at a virtual investment conference entitled ‘New World Insights: Exploring themes set to outperform’. Of course, the full extent and long-term impact of Covid-19 will remain unknown for some time. But as the world embarks on the long journey back to social and economic normality, I questioned whether this is the moment ‘value’ is about to return to favour."
"Market volatility is presenting some interesting opportunities – the commodities sector key among them. It has not escaped the market correction in part because its fortunes are associated with those of the global economy. However, there are specific factors at play that suggest the sector will bounce back faster than the market is expecting."
"Despite markets riding the liquidity wave provided by central banks, the corporate outlook remains uncertain and the crisis is not yet over. The extent of dividend cuts reflects the pain and the hazy outlook. Many high-profile FTSE 350 companies have succumbed. Further cuts are likely. In response, income investors need to achieve even greater diversification."