Shares Magazine - May 24, 2018

24 May 2018 | SHARES | 27

ABERDEEN DIVERSIFIED INCOME &

GROWTH TRUST (ADIG) 121.4P BUY

Although historic performance has been patchy
this trust has performed better of late under
co-managers Mike Brooks and Tony Foster.
They took the helm in February 2017 with a
long-term approach based on investing in a
diverse collection of assets including private
equity, listed equities, emerging market debt,
property and infrastructure through to insurance-
linked assets and special opportunities such as
healthcare royalties and aircraft leasing.
Brooks and Foster tend to avoid commodities
as an asset class thanks to their volatility and
lack of income.

WATKIN JONES

(WJG:AIM) 207P BUY

This student accommodation provider looks
an attractive proposition on a long-term view.
The shares currently trade on an undemanding
price-to-earnings ratio of 13.4-times and yield
an attractive 3.7%.
As an asset class student accommodation
typically has quite limited volatility and does
not react in the same way as commercial
property to the economic cycle.
Watkin Jones also has interests in the
build-to-rent sector which is increasingly
looking attractive as so many people can’t
afford to buy their own home.
It recently struck a deal with M&G and Lochailort
to deliver a build-to-rent scheme in Reading.

Unite’s (UTG) property director Richard Simpson

will become chief executive of Watkin Jones in

January 2019 and is a well-known and highly

rated individual in the property sector. (TS)

MURRAY INTERNATIONAL

(MYI) £11.86 BUY

This trust has been managed by Bruce Stout

with a worldwide remit since 2004. Stout is

supported in his decision making by 10 global

equity specialists and invests for the long-term

with limited turnover in the fund.

The top 20 equity holdings account for more

than half the portfolio. Also investing in bonds, it

aims to beat the income available from the market

and offers a dividend yield of around 4%.

The manager tends to take a cautious approach.

Top holdings include microchip manufacturer

Taiwan Semiconductor Manufacturing; Groupo

Asur, the Mexican airports operator; and it recently

added Poland’s Bank Pekao to the portfolio.

TWO INVESTMENT TRUST IDEAS

AND A BONUS STOCK IDEA

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