JohnBaronPortfolios.co.uk

Welcome toThe Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk.Each month, John Baron joins former Investors' Chronicle editor John Hughman todiscuss the big themes dominating the investment landscape and the importantissues affecting the sector, while explaining how these are influencing the waythe website's ten live investment trust portfolios are being managed. In episode 17, they take an in depth look at thepower of compounding, and why it remains one of the most important drivers oflong-term investment success. They explain how reinvesting dividends hashistorically generated the vast majority of stock market returns, turningsteady, patient investing into significantly stronger outcomes over time. Theyalso look at gold’s recent weakness during geopolitical tensions and why,despite short-term pressures from a stronger US dollar and regional dynamics,the broader outlook remains positive.

Launched in1891, CTY is one of the UK’s oldest and best-known investment companies, with along-standing focus on delivering a rising income alongside long-term capitalgrowth. The trust invests predominantly in UK-listed equities, although many ofits holdings generate a significant proportion of revenues overseas, and it hasthe flexibility to invest up to 20% of assets in overseas stocks. CTY isparticularly renowned for its exceptional dividend record, having increased itspayout every year for close to six decades, supported by the investment truststructure and the use of revenue reserves. The portfolio is managed with aconservative, valuation-led approach, emphasising companies with strong balancesheets, resilient cash flows and sustainable dividends. Job Curtis has managedthe trust since 1991, providing continuity of philosophy through multiplemarket cycles. In thisinterview, Job Curtis discusses how the trust is positioned in the currentmarket environment and reflects on the experience gained from managing CTYthrough periods of inflation shocks, interest rate cycles and geopoliticaluncertainty. He explains why valuation remains the starting point for allinvestment decisions and how this discipline has shaped portfolio positioning,including a sizeable overweight to UK financials and selective exposure to realestate and other out-of-favour areas. The conversation also covers the trust’spragmatic approach to ESG, its willingness to take contrarian positions wherevaluations are compelling, and the role of revenue reserves in sustainingdividend growth. Curtis concludes by outlining the key risks and opportunitiesfacing income investors and setting out why he believes pessimism around UKequities is overstated.

FGT is oneof the UK market’s largest and most established investment trusts, aiming todeliver long-term capital growth and a growing income stream from aconcentrated portfolio of predominantly UK-listed companies. Managed since 2000by Nick Train, the trust follows a distinctive conviction-ledphilosophy, investing in high-quality businesses with strong brands, durablecompetitive advantages, and the ability to generate sustainable cash flows overdecades. The closed-ended investment trust structure allows the manager to holdsuccessful investments for the long term without being forced sellers,supporting a patient approach that has underpinned the trust’s long-term trackrecord across multiple market cycles.In thisinterview, recorded three years after we first spoke to Mr Train in December2022, he reflects on his 25 years at the helm and the trust’s 100-year history,before addressing the recent period of underperformance. He discusses why theportfolio has struggled amid sector headwinds, notably in consumer brands suchas Diageo and Burberry, and explains why he remains committed to theseholdings. The conversation also explores a growing portfolio emphasis on dataand information businesses, including London Stock Exchange Group, and MrTrain’s conviction that artificial intelligence represents a long-termopportunity for such businesses rather than an existential threat. Throughout,he reiterates the importance of patience, discipline, and belief in enduringbusiness quality.

Welcome toThe Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk.Each month, John Baron joins former Investors' Chronicle editor John Hughman todiscuss the big themes dominating the investment landscape and the importantissues affecting the sector, while explaining how these are influencing the waythe website's ten live investment trust portfolios are being managed. In episode16, they suggest emerging markets deserve renewed attention because ofattractive valuations, stronger demographics, structural reforms, risingdomestic consumption, and improving economic credibility. They also examine theIran conflict, warning that it could go on for longer than some expect, whileadvocating the importance of staying invested even if underweight equityexposure and overweight other assets such as corporate bonds, infrastructure,precious metals, commodities and cash.

Launched in 2021, SSIT is the world’s first listed investment trust dedicated solely to SpaceTech. Managed by Seraphim Space, the specialist investor seeks to deliver long-term capital growth by backing a concentrated portfolio of later-stage space technology companies with proven products and commercial traction. With around $480m of assets under management across its platforms, Seraphim focuses on businesses typically at Series B stage and beyond that combine scalable technology with a clear path to global relevance. The trust’s strategy centres on “Space 2.0”, encompassing digital infrastructure such as satellite constellations generating real-time data for use on Earth, and “Space 3.0”, which involves building physical infrastructure in orbit. In contrast, SSIT deliberately avoids launch, space tourism and deep-space exploration. In this interview, Mark Boggett, CEO and co-founder of Seraphim, discusses how space technology has quietly become a mainstream enabling capability. Boggett explains Seraphim’s highly selective, hands-on investment approach, its use of deep sector knowledge to identify future category leaders, and the importance of partnering with established aerospace groups. The discussion explores how falling launch costs and advances in satellite technology are transforming the economics of the sector, why defence spending is accelerating the development of commercial space infrastructure, and how AI is unlocking the value of space-derived data for industries ranging from climate and mobility to communications and smart cities.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed. In episode 15, they set out the portfolio positioning for 2026 amid stubborn inflation risks, subdued growth, and a more fragile geopolitical backdrop. They explain why they remain underweight equities (especially the US), why value-led markets such as the UK and Europe look increasingly compelling, and why the AI-fuelled ‘Magnificent Seven’ concentration raises uncomfortable echoes of past booms. The pair also highlight favoured themes including healthcare/biotech, uranium, and the role of precious metals in preserving capital. The episode then turns to the evolution of the ‘Green’ portfolio into the new ‘Sage’ portfolio - broadening the remit beyond the environment to include a wider set of investments promoting social good, from equality and education to infrastructure and social housing.

BIPS aims to deliver a high level of income with thepotential for capital growth from a diversified portfolio of corporate bonds. The trust primarily invests in sterling and other major-currency bonds issued by companies, combining higher-yielding credits with investment-grade holdings to balance risk and return. Its closed-ended structure allows the use of modest gearing - typically around 10–15% - to enhance income and flexibility, as well as access to less liquid opportunities such as subordinated bank and insurance debt not available to private investors. BIPS also targets a set dividend - currently 12.25p per annum, equivalent to around a 7% yield - supported by predictable coupon income from its portfolio of around 150 issuers. In this interview, manager Rhys Davies discusses how BIPSis currently positioned following the recent inflation spike and subsequent bond-market volatility. He explains the trust’s preference for corporate over government bonds, highlighting exposure to household names like Boots and Morrisons alongside smaller building societies and bank capital instruments such as Lloyds and Newcastle. He explains the trust’s cautious but opportunity-aware stance, and how a higher weighting in investment-grade debt provides ample income without taking undue risk. And he outlines the team’s bottom-up credit process, and how it has identified successful contrarian trades that have delivered capital upside.

MYI is a diversified global equity income investmenttrust managed by abrdn’s Samantha Fitzpatrick and Martin Connaghan. With a globally unconstrained remit, the trust aims to deliver an above-average dividend yield alongside long-term real growth in both income and capital. The managers build a high-conviction portfolio of around 50 high-quality businesses from across developed and emerging markets, all expected to pay attractive, sustainable and growing dividends. While the mandate allows selective use of fixed income when valuations are especially compelling, the portfolio today is overwhelmingly equity-focused, with holdings spread across sectors such as financials, technology, consumer and industrials. The emphasis throughout is on valuation discipline, balance sheet strength and genuine underlying cash generation to ensure the dividend is covered by income earned from the underlying companies.In this interview Samantha and Martin discuss how theyhave steered the trust through a period of persistent macro uncertainty, including inflation, shifting interest-rate expectations, political tensions and volatile currencies. They explain the dual objective of delivering dependable income and attractive capital growth, and how portfolio flexibility allows them to blend higher-yielding names with lower- yielding but faster-growing businesses. The managers talk through their disciplined approach to valuation - trimming winners and adding to fundamentally sound laggards -their enduring conviction in emerging markets, and the rationale behind key positions in financials and technology. They also outline recent portfolio changes, including recycling from bonds into equities and new stock ideas, and explain why a consistent, bottom-up process remains their best defence against an unpredictable world.

Welcome toThe Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month,John Baron joins former Investors' Chronicle editor John Hughman to discuss thebig themes dominating the investment landscape and the important issuesaffecting the sector, while explaining how these are influencing the way thewebsite's ten live investment trust portfolios are being managed.In episode14, they look at economic pessimism in the UK, how the UK market isoutperforming despite the gloom and why it’s disconnected from the domesticeconomy. They look at why value investing is back in favour and how historicvaluation discounts are creating real value, before putting all together toexplain how the portfolios are achieving diversification in a potentiallystagflation world.

Formerly Aberdeen Asian Smaller Companies, AAS is an investment company focusing on high-quality small caps across Asia ex-Japan through a concentrated, high-conviction portfolio of roughly 50 names, built from deep, on-the-ground research and a quality-first philosophy. The portfolio is deliberately differentiated from its benchmark, the MSCI AC Asia ex Japan Small Cap Index, and diversified across India, China/Hong Kong, Southeast Asia, Taiwan, and Korea, with selective use of gearing. Current positioning leans into domestic growth (notably India) while owning export winners in Taiwan/Korea, aiming to capture Asia’s structural trends while managing risk through thoughtful portfolio construction.In the interview, portfolio manager Gabriel Sacks explains the evolution of the trust's strategy, including a rebalancing of geographic exposure towards North Asia and asset-light businesses, as well as a deepened focus on the China market and a detailed investment process emphasizing quality, valuation, and active portfolio management. He outlines the portfolio's geographic allocation across India, China and Hong Kong, Southeast Asia, and Taiwan and Korea, driven by themes like middle-class growth, advanced manufacturing, digitalization, and green energy infrastructure. And he explains his positive long-term outlook for Asian small caps as the “growth engine of the new world,” and why exposure to domestic consumption helps buffer the ongoing impact of tariff turmoil.

BRAI is a systematic, active equity investment companytargeting US value stocks with the dual aim of delivering consistent returns and a 6% annual dividend yield. The trust applies four decades of BlackRock’s systematic investing expertise, combining advanced data science, AI, and portfolio construction discipline to outperform the Russell 1000 Value Index. Its structure allows for long-term capital deployment, with stringent shareholder protections including a 100% tender offer if it fails to beat its benchmark by 50bps annually over three years. Holding 150–250 stocks diversified across sectors, the trust seeks to capture inefficiencies in one of the world’s most competitive markets while managing risk and maintaining reliable income.In the interview, co-manager Muzo Kayacan explains how AI – including transformer-based large language models – is reshaping the trust's investment process, from digesting 6,500 broker notes a day in 47 languages to back testing millions of ideas in seconds. He describes the balance between automation and human insight, where machines handle data-heavy analysis while portfolio managers focus on creative and complex decision-making. The conversation explores portfolio construction, risk controls, dividend sustainability, and how systematic signals such as valuation, management quality and sentiment combine to identify underappreciated US value opportunities. Kayacan also reflects on the “second golden age for quant,” outlining how scale, innovation, and continuous discovery of new signals give BlackRock an edge in staying ahead in systematic investing.

Welcome to The Two Johns, the investment trust podcastbrought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode 13, the two Johns discuss the portfolios' large contrarian bet on the healthcare sector, and how the triple tailwinds of ageing populations, accelerated innovation, and greater political clarity have been overlooked by the market. They also dissect the recent Autumn budget to assess its implication for investors, and where the opportunities may lie as economic growth continues to evade the Chancellor.

JEDT aims to deliver long-term capital growth by investing in high-quality smaller companies across continental Europe. Rebranded from the Small Cap Trust, its new identity reflects its focus on uncovering under-researched and overlooked businesses with strong growth potential. With a benchmark of the MSCI Europe ex-UK Small Cap Index, the trust is managed by Jon Ingram, Jules Bloch and Jack Featherby, who use a flexible, factor-driven investment process to identify opportunities across value, quality, and operational momentum. The portfolio is deliberately diversified across geographies and sectors, with a bias toward areas such as industrials, healthcare, and technology - sectors most likely to generate 'ten-bagger' returns. The trust employs gearing of up to 20% to enhance returns.In this interview we speak to portfolio manager Jack Featherby who outlines why European small caps are such a compelling hunting ground, highlighting their superior long-term performance, stronger growth rates than even the S&P 500, and current attractive valuations; he describes the process for identifying hidden gems and the trust's focus on finding companies dominating niche markets with clear growth catalysts; and he stresses the importance of direct engagement with management, which helps uncover crucial insights into business drivers.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, they return to the subject of gold and precious metals, and the possibility that gold could displace the dollar as the reserve asset that underpins the global financial system. They also look at the opportunities offered by the precious metal mining companies given their valuations, and gold’s role within the discipline of diversification alongside other non-correlated assets that offer a useful alternative to bonds.

Launched in 2023 in the teeth of volatile conditions marked by rising interest rates, the Ukraine crisis, and banking sector turmoil, ONWD is one of only a handful of UK investment companies to have made it to market in recent years. Under the leadership of manager Laurence Hulse, the trust’s focus is on smaller UK companies, applying a contrarian philosophy that seeks value in overlooked or misunderstood opportunities to deliver a long-term return target of 15% per year.In this interview, Laurence explains the trust’s philosophy of ‘dawn and dusk’ investing – spotting recovery or transformation stories early, and capturing deep value where the market has given up. He outlines a rigorous, private-equity style process involving deep due diligence incorporating in-depth financial modelling and site visits. He also describes the trust’s ‘nursery’ approach, where small initial positions are taken before conviction builds, and shares examples of successful investment such as Angling Direct, Alumasc, Likewise, and Pebble Beach. The conversation also touches on the challenges of the UK small-cap market, the trust’s active but collaborative engagement with company management, and the importance of public markets in supporting broader growth and personal wealth creation.

In this episode, John Hughman welcomes back Keith Watson and Robert Crayfourd from New City Investment Management to discuss GCL, a UK-listed investment trust focused on the global nuclear energy sector. Managed by Keith and Robert, the trust is uniquely positioned to capitalise on the resurgence of nuclear power, with a mandate that allows them to invest across the full supply chain. As governments and industries seek stable, zero-carbon energy solutions amid the rising power demands of AI and data centres, GCL aims to provide investors with access to high-conviction uranium equities that could benefit from this long-term shift. The trust currently trades at a discount, offering additional upside potential, including a value-adding embedded rights issue.The conversation spans the key drivers of the “nuclear renaissance,” from geopolitics and energy security to climate policy and AI-driven electricity demand. Keith and Robert explain the trust's focused, conviction-led approach, with names like NexGen and UR-Energy forming a substantial part of the portfolio due to their strategic assets and near-term production potential. The episode explores the economics of uranium, the evolving role of small modularreactors (SMRs), and the underappreciated risks of supply chain fragility and the resulting supply-demand imbalances that impact the spot uranium price. With expert insights on geological quality, jurisdictional risk, and capital discipline, the managers detail how their deep sector knowledge helps them identify quality opportunities.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, John Baron and John Hughman talk value investing, and why the portfolios are being repositioned in favour of value stocks and markets in anticipation of tougher times ahead, before tackling one of the biggest questions of the day – is capitalism broken, what can be done to fix it, and what does capitalism’s current malaise mean for investors.

MTE is managed by George Cooke at Montanaro Asset Management and focuses on delivering capital growth through investments in high-quality, niche smaller companies across continental Europe. The company is held in a number of portfolios and aims to identify well-managed businesses with strong balance sheets, sustainable profitability, and clear structural growth opportunities. Its approach deliberately avoids the economic cycle, choosing instead to invest in businesses capable of growing irrespective of broader macroeconomic conditions. With a deeply experienced and multilingual investment team, Montanaro leverages bottom- up research and regular site visits to uncover under-researched gems. In the interview, George elaborates on the trust’s distinctive bottom-up approach that filters for enduring quality and growth, and the importance of structural growth over cyclical trends; how the scale of its analyst team gives it an edge in conducting due diligence on investments employing frameworks such as Porter’s Five Forces to assess competitive moats and business longevity; how the trust's long-term outlook, emphasis on owner-operators, and willingness to hold positions for a decade or more underpins its strategy; and how the trust’s portfolio is skewed toward industrials and specialist manufacturers, benefiting from Europe’s dense ecosystem of niche players.

SOI is a UK-listed investment company which aims to deliver income and capital growth through investments in dividend-paying companies across the Asia Pacific region, excluding Japan. Lead manager Richard Sennitt, who has over 30 years of experience in Asian markets, has managed the trust since 2020. The fund adopts a bottom-up, fundamentally driven approach supported by a large team of analysts based throughout Asia. In this podcast, Richard explains the strategy, highlighting its emphasis on strong, sustainable dividends over mere high yields; he discusses the company's regional and sector allocation, and the rationale for portfolio weightings towards Taiwan, Hong Kong, Singapore, and Australia, and away from India and China. He outlines the methodology behind its rigorous bottom-up stock selection, and how the company is responding to geopolitical developments that are affecting Asia. He also discusses a positive shift in dividend culture across Asia, particularly in markets like Korea and Taiwan, and emphasizes the growing opportunity for income investors in the region.

<p>Welcome to The Two Johns, the investment trust podcast brought to you by the website <a href="http://www.johnbaronportfolios.co.uk/" target="_blank">www.johnbaronportfolios.co.uk</a>. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.</p><p>In this episode, they follow up last month's discussion of stickier than expected inflation by explaining how the website's portfolios are positioned to navigate this economic backdrop, before turning to chapter 7 of John's book (The Financial Times Guide to Investment Trusts) to look at the AIC's Dividend Heroes, and how investment trusts are uniquely positioned to deliver such unblemished income histories.</p>

JEGI is a London-listed investment company offering investors diversified access to European equities outside the UK and is a core holding within several portfolios. Managed by Tim Lewis alongside Zana Shuhabber and Alexander Fitzalan Howard, the company aims to deliver both capital growth and a reliable income stream, targeting a 4% dividend yield paid quarterly. The company employs a flexible and balanced strategy, seeking to perform across a range of market conditions by focusing on stock selection and maintaining exposure to both growth and value segments across Europe.In this interview, Tim Lewis outlines the trust’s approach to investing in focusing on high-quality businesses with underappreciated value and momentum using both quantitative and fundamental analysis to uncover opportunities across sectors and market caps, including recently increased exposure to disruptive European small caps. He discusses key investment themes include infrastructure, electrification, and why he believes Europe is improving its competitiveness amid global volatility. Lewis also highlights the trust’s strong recent performance, driven by investment in companies like Italy’s UniCredit bank andGermany’s Heidelberg Materials, and notes optimism about Europe's structural recovery, long-term fiscal initiatives, and supportive monetary conditions.

IEM is a specialist investment company that provides investors with exposure to businesses delivering solutions to global environmental challenges, in particular those that enable the more sustainable use of resources including energy and water. Unlike trusts heavily invested in renewable infrastructure, IEM invests directly in equities around the world to tap into long-term structural growth trends driven by the global transition toward a more sustainable and resource-efficient economy.In part two of our IEM interview series, we speak once again to co-manager Fotis Chatzimichalakis to understand how IEM has maintained resilience amid recent market volatility by limiting exposure to policy-sensitive areas like renewables and focusing on more stable, high-growth businesses supporting resource efficiency which offer their customer significant cost savings as well as solving environmental challenges. He outlines significant allocations in water infrastructure and energy management, and the importance of geographic diversification into emerging markets like India and China which are investing heavily in environmental technologies. And he underlines the importance of data-driven digital technologies that support the drive for resource efficiency as a particularly attractive investment opportunity.

Welcome to The Two Johns, the investment trust podcast brought to you by the website. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode's three sections, they take a look at the factors which are likely to keep inflation higher and more volatile than previously expected, not least ongoing geopolitical tension; how the ability to borrow is another structural advantage enjoyed by investment companies over their open-ended counterparts, and how recent increases in gearing point to renewed optimism among managers;and how a continued narrowing of investment trust discounts to NAV from unusually elevated levels offers opportunity for value-conscious investors. 

IEM is a specialist investment company that provides investors with exposure to businesses delivering solutions to global environmental challenges, in particular those that enable the more sustainable use of resources including energy and water. Unlike trusts heavily invested in renewable infrastructure, IEM invests directly in equities around the world to tap into long-term structural growth trends driven by the global transition toward a more sustainable and resource-efficient economy.In the first of two interviews with the team behind the company, we speak to chairman Glen Suarez, a former investment banker who’s turned his attention to the investment company sector, and past chairman of trusts including Edinburgh Investment Trust (EDIN), Blackrock Throgmorton (THRG), and Bluefield Solar Income (BSIF). We discuss the important but often understated role of investment company boards in driving shareholder returns, the relationship between boards and the investment managers, and – in context of the recent actions of Saba Capital – the importance of dialogue with shareholders, and particularly retail shareholders.

SOI is a UK-listed investment company which aims to deliver income and capital growth through investments in dividend-paying companies across the Asia Pacific region, excluding Japan. Lead manager Richard Sennitt, who has over 30 years of experience in Asian markets, has managed the trust since 2020. The fund adopts a bottom-up, fundamentally driven approach supported by a large team of analysts based throughout Asia. In this podcast, Richard explains the strategy, highlighting its emphasis on strong, sustainable dividends over mere high yields; he discusses the company’s regional and sector allocation, and the rationale for portfolio weightings towards Taiwan, Hong Kong, Singapore, and Australia, and away from India and China. He outlines the methodology behind its rigorous bottom-up stock selection, and how the company is responding to geopolitical developments that are affecting Asia. He also discusses a positive shift in dividend culture across Asia, particularly in markets like Korea and Taiwan, and emphasizes the growing opportunity for income investors in the region.

NCYF is a closed-ended investment company focused on generating a high level of income, primarily through a diversified portfolio of high-yielding fixed income securities. Managed by Ian ‘Franco’ Francis of CQS, the fund targets opportunities in sub-investment grade credit, with a strong emphasis on capital preservation and careful risk management. With nearly 19 years of consistent performance under Franco’s leadership, NCYF maintains a UK-centric portfolio while retaining the flexibility to invest globally.In this episode, Franco joins John Hughman to discuss the current investment landscape and how NCYF is positioned to navigate it. Topics include the impact of market volatility, interest rate cycles, and inflation, as well as sector-specific opportunities in financials, travel, and renewables. Franco also explains the fund’s disciplined approach to bond selection, the role of equities, and how NCYF fits within a balanced portfolio - offering income, resilience, and potential for capital growth.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, John Baron and John Hughman take a look at three sectors where sentiment has displaced fundamentals, and how such special situations in biotech, fintech and specialist mining present an opportunity for investors willing to look past the pessimism. They discuss the special structural factors that have influenced the long-term outperformance of investment companies, before turning their attention to why investors should be wary of paying too much attention to short-term macroeconomics and geopolitics.

Montanaro Asset Management, founded in 1991 by anthropologist-turned-investor Charles Montanaro, has carved a distinctive niche in UK small-cap investment. With a team of 39, including 18 long-serving analysts and fund managers, the firm manages approximately £3 billion in assets. Montanaro’s unconventional background and early experiences in private equity shaped his vision of applying a private equity approach to publicly quoted UK small companies. MTU, launched in 1995, embodies this vision, offering clients access to under-researched, high-quality small-cap companies. Charles stresses the importance of investing in simple, understandable businesses led by trustworthy management, and he remains convinced of the sector’s long-term outperformance, despite recent headwinds.In this exclusive podcast appearance, Charles discusses the challenges UK small caps have faced, from macroeconomic shocks to capital outflows in favour of US mega-cap tech stocks, and why he believes the sector is poised for recovery. He highlights the inefficiencies and lack of research coverage in the small-cap space as opportunities for active managers and shares examples from MTU’s portfolio, including Big Yellow, Cranswick, and Chemring Group. He explains why he prefers boots-on-the-ground research and long-term holding strategies, underscoring his team’s discipline and deep sector expertise. He also critiques structural issues affecting UK equity markets, advocating for regulatory and pension reform to reinvigorate domestic investment, and why a background in anthropology has proved an invaluable tool in understanding the psychology behind small-cap investing.

CVCG is an investment company specialising in Europeancorporate debt, with a core focus on senior secured loans and sub-investment grade credit. Its primary objective is to generate a reliable income stream, but it also seeks capital growth by identifying undervalued credit opportunities - bonds and loans trading below par. The trust benefits from a dedicated team of analysts based in London and New York, allowing it to carry out deep credit work and selectively deploy capital where risk-adjusted returns are most attractive. By investing in floating rate debt, which benefits directly from rising base rates, CVCG has been well-positioned for the recent interest rate cycle, and its senior secured position offers a strong buffer in the event of defaults.In this podcast, portfolio manager Pieter Staelens outlines how CVCG has responded to the sharp rise in interest rates, why its focus on mature, cash-generative businesses - particularly in sectors like healthcare and business services - has helped avoid distress, and how geopolitical uncertainty is shaping credit opportunities. He explains how the trust adapts its 50/50 portfolio split between performing credit and opportunistic investments depending on market conditions, and why it continues to avoid volatile or opaque sectors like real estate, automotive, and emerging markets. With yields still in the high single to low double digits and a proven ability to generate top-up dividends, Staelens argues the trust remains well-placed to thrive even as rate cuts begin and economic visibility remains limited.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, John Baron and John Hughman delve into the misunderstood world of private debt and why its balance of risk and reward offers an attractive alternative to public debt markets. They also examine the importance of keeping an eye on fees, and why investment trusts are an increasingly competitive choice against other collective vehicles. And they discuss how Trump’s tariff wars are yet another reason to think inflation is likely to remain higher for longer.

MRC has a long-standing reputation in the UK investment trust sector, having been established in 1884. Its core focus since 1994 has been on generating long-term capital growth and rising dividends from a 70-strong portfolio of UK-listed mid and small-cap companies. The company adopts a quality growth strategy, targeting high-return, competitively advantaged companies trading at attractive valuations. Despite macroeconomic headwinds, such as interest rate volatility and political uncertainty, MRC has delivered robust NAV returns, recently achieving a 14% gain in the financial year ending January 2025.In this podcast, manager Guy Anderson outlines how MRC has navigated tough market conditions through bottom-up stock selection focused on companies generating sold cash flows; why the trust is slightly overweight in UK domestic cyclicals, including housebuilders and retailers, which Anderson believes are undervalued due to a disconnect between public sentiment and economic reality, and why increased conviction in market opportunities means the company’s gearing remains at the higher end of its usual range, while continuing to help it consistently grow its dividend above inflation.

NAIT, now managed by Janus Henderson since August 2024, is designed to offer investors a disciplined portfolio that blends income and growth within the North American market. Led by Fran Radano, the trust differentiates itself by seeking high-quality, dividend-paying companies, rather than simply following high-growth trends like the Magnificent Seven. With a focus on sustainable earnings, capital discipline, and valuation awareness, the trust maintains a portfolio trading at a lower multiple than the S&P 500, with underlying dividend yields of 2–3.25% and annual dividend growth of around 7%. Following the move to Janus Henderson, the trust has rebalanced towards stronger earnings and dividend growth while retaining a healthy yield, making it suitable for investors seeking both resilience andlong-term compounding returns.In the interview, Fran discusses the trust’s selective investment strategy, which spans U.S. and Canadian markets and focuses on sectors like healthcare, technology, and consumer staples; why the company’s holdings such as Medtronic, Accenture, and Philip Morris exemplify the trust’s preference for stable, cash-generative businesses with solid management and capital allocation practices; how the team still embraces technological tailwinds like AI through companies benefiting from its adoption; and the importance of face-to-face meetings with management, robust internal research, and staying attuned to macroeconomic shifts - such as tariffs and interest rate changes - when navigating markets.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, the two Johns turn their attention to the US and the fallout from President Trump’s ‘Liberation Day’ – events that support our decision to be underweight US equities, and which suggest a great rotation into UK shares could be on the way as the world order shifts once again. We look at the factors behind investment companies’ long-term outperformance of their benchmarks and open-ended counterparts, before turning to the importance of setting long-term investment objectives.

CYN and GPM are investment trusts managed by New City Investment Management, which specialise in naturalresources and precious metals. CYN offers diversified exposure to global mining, energy, and commodity markets, including base metals, gold, and shipping, aiming to generate high yields and long-term capital growth. GPM, on the other hand, is a more focused trust dedicated to the precious metals sector, primarily investing in mid-sized gold and silver mining companies. Both trusts leverage New City’s expertise in commodities and macroeconomic trends to provide investors with access to inflation-resistant and high-growth assets in resource-driven industries.In this episode, portfolio managers Robert Crayfourd andKeith Watson discuss their experience as a target of recent shareholder activism within the sector, noting the opportunistic nature of Saba Capital’s attempts to restructure these vehicles and emphasising the long-term benefits of closed-ended funds for investing in commodities and energy.They also explain gold’s recent surge, driven by strong central bank demand, geopolitical uncertainties and inflation concerns, and why gold mining equities still present a compelling investment opportunity despite having lagged gold’s rise. They discuss their strategy of targeting mid-sized mining companies with strong management teams, sound financials, and the ability to self-fund expansion, and why increasing national self-interest reinforces their optimistic outlook for gold and resource-based investments.

Holding almost £1.5bn of assets, VEIL is the largest of three major trusts focusing exclusively on Vietnam, with a mandate of seeking long-term capital growth by investing in companies primarily operating in Vietnam. The company’s largest sector weightings are towards telecoms, technology, and financials. In this interview, Dominic Scriven OBE, Chairman and Founder of Dragon Capital, the asset manager behind VEIL, explains to us why he believes Vietnam generates so much interest among Western investors, including its demographic, cultural and geographic strengths, and a government focused on continuous reform and becoming a high-income country by 2045; the regulatory changes coming to Vietnam’s capital markets that should help drive further foreign and domestic investment into its markets; the big trends that VEIL targets, including infrastructure development, capital market growth, global supply chain dynamics, and the growth of the consumer economy; and, as Vietnam moves closer to emerging market status, the opportunities arising from Vietnam's maturing private sector and a coming wave of IPOs from its next generation of industry.

Welcome to The Two Johns, the investment trust podcastbrought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron joins former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, they head to the Continent to explain why after a long period of economic stagnation now could be the time to buy into Europe’s unloved markets, they go back to basics to explore what makes investment trusts such useful vehicles for long-term investors, and they take a deep dive into the Dividend Portfolio and how it reliably delivers a 7% yield.

Co-managed by Ian Lance alongside Nick Purves, TMPL is a prominent UK equity income fund best known for its value-investing approach. Focused on income and long-term growth, it targets investments in undervalued areas such as financials, energy, and turnaround situations, which has helped it deliver returns far in excess of the UK investment company average, including a 19% return in 2024, more than double the 9.5% return from the FTSE All Share. The company can invest up to 30% of its portfolio overseas but is currently weighted more to the UK given the managers’ belief in the value its markets offer. In this podcast, Ian explains how the trust’s bottom up investment approach has driven the fund’s performance, and how corporate share buybacks and takeovers have proved a catalyst for improved returns; why the company seeks out turnaround stories, and why its successful contrarian investment in retailer Marks & Spencer has further to run; how the company manages economic cyclicality and the deteriorating UK economic outlook, and why periods of economic distress create opportunities as other investors overreact to bad news; the importance of starting point valuations as a foundation for future outperformance; and why the managers remain optimistic about the company’s prospects in 2025, citing the persistently low valuation of UK equities and the portfolio’s high dividend coverage.

ANII is a single-county investment company focused on India's equity market. It aims for long-term capital growth by targeting high-quality companies with strong fundamentals, leveraging a bottom-up investment approach to identify ‘compounders’ — businesses capable of delivering consistent outperformance over time. India’s robust macroeconomic reforms, favourable demographic trends, and structural economic growth are central to ANII's investment thesis, and it takes a conviction approach to play this, running a portfolio of 40-42 companies spanning financial services, healthcare, and consumer markets.In this interview, John Hughman chats to James Thom, Senior Investment Director at Abrdn and co-manager of ANII. They discuss India’s investment potential and the company’s strategy to tap into it; the macroeconomic improvements, including policy-driven stability, and the country’s ‘demographic dividend’ and growing per capita wealth as catalysts for growth; why India’s premium valuations are justified, and how a benign economic and political backdrop is likely to drive further corporate earnings growth; India’s growing involvement in global supply chains and how they are offset by persistent challenges, including job creation and geopolitical risks.

Welcome to The Two Johns, the investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron will be joining former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed.In this episode, they discuss why small companies could be about to stage a long-overdue fightback, the inconvenient market truth behind the research of leading finance academic Hendrik Bessembinder, and the reasons for Saba’s 7-0 defeat while acknowledging this doesn’t mean activism and investment companies don’t mix.

SHED is a real estate investment trust specializing in last-mile logistics used in supply chain fulfilment. The company focuses on ‘mid-box’ properties (20,000–200,000 square feet) near urban areas and key transport hubs. Since its IPO in 2016, Urban Logistics has grown its portfolio to 134 properties worth £1.2 billion, with a strategy centred on active asset management, value creation, and low-risk financing.In this podcast we speak to CFO/COO Jamie Waldegrave and CIO Justin Upton about how the company’s laser focus on last mile logistics property has helped it build its unique portfolio and reduce its cost of capital; how it puts its deep sector knowledge to use to acquire high-potential properties with the potential for major rental uplift through targeted refurbishments; the strength of its tenant base, and how it reduces downside risk by avoiding sectors like fast-fashion; and how poor sentiment towards the wider retail sector has created a major opportunity to tap into the significant dividend streams underpinned by sharp operational management and disciplined financial management.

BNKR is a FTSE 250-listed investment company focused on delivering long-term capital growth in excess of its FTSE World Index benchmark and inflation-beating income growth to its shareholders. Established in 1888, it invests in a diversified portfolio of global equities aiming to tap into global trends in GDP growth, in particular the rapid growth on offer in Asia. That’s translated into a 57-year record of raising dividends, with a dividend paid every year since inception. In this interview we speak to lead manager Alex Crooke about the importance of the three Us (“Unloved, under-owned and undervalued”) to the company’s investment philosophy; why the team is balancing the portfolio to take advantage of faster growth in emerging Asia; building macro analysis by in-region experts into the company's bottom up stock picking approach; looking past AI hype to opportunities in the broader US market; and why the global economy is likely to experience a ‘soft landing’ that supports the manager's cautiously optimistic outlook.

Welcome to The Two Johns, the new investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron will be joining former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed. In our third episode, we delve into the high-stakes world of activist investing, focusing on Saba Capital’s bold moves within the UK investment trust sector; then, in our ‘Investment Insight’ segment, we discuss the pitfalls of forecasting and why sticking to fundamentals often trumps speculative predictions; before rounding off by considering how to adjust your investment strategy as you approach the end of your investment journey.

SJG is an investment company whose aim is to deliver capital growth in excess of the Tokyo Stock Exchange’s First Section Total Return index, an objective it’s consistently delivered on over the last decade. The company runs a high-conviction portfolio of around 60 stocks across a range of sectors, taking a value-led, bottom-up approach to stock selection within thematic areas it’s identified as likely benefit from trends within the Japanese economy and beyond. The company recently announced an enhanced dividend policy with an aim of paying out 4% of NAV in each financial year. In this podcast interview, John Hughman speaks with manager Masaki Taketsume about how corporate governance reforms have seen the Japanese market deliver strong earnings growth despite domestic economic stagnation; the country’s shift from deflation to inflation and the normalisation of Japanese monetary policy; how the company uses the deep experience of its analyst network to identify companies set to benefit from macroeconomic and shifting social dynamics within Japan; and how a growing focus on balance sheet efficiency is seeing dividends becoming a key component of investing in Japanese equities.

Welcome to The Two Johns, the new investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron will be joining former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed. In this second episode, we’re exploring the sometimes-complex world of capital preservation trusts and their diversification credentials; then, in our ‘Investment Insight’ session, examining why the principle “Time in the market, not market timing” is a truism worth adhering to; before questioning whether actively managed ETFs really do pose a threat to the sector.

Established nearly a century ago, BUT is a long-standing, family-oriented investment company founded by Sir John Brunner, who reinvested the proceeds from selling his soda ash business to form the company. Primarily designed as a vehicle for wealth preservation across generations, the Brunner family retains a significant 28% stake in it. With assets exceeding £600 million, the trust has consistently grown its dividends for over 50 years. Managed with a global focus, its benchmark is 70% FTSE All-World and 30% FTSE All-Share, positioning it as a diversified global trust with a strong UK component. In the interview, Julian Bishop describes Brunner’s flexible investment philosophy, which focuses on balancing quality, growth, and value; how the trust seeks to find high-quality wealth compounders like Visa and niche value stocks like Brambles, a pallet-leasing company, and how many of its holdings benefit from unique network effects; and the challenges of macroeconomic prediction and why the managers take a bottom up approach with a focus on industry structures and how companies generate the cashflows that underpin long-term outperformance.

Welcome to The Two Johns, the new investment trust podcast brought to you by the website www.johnbaronportfolios.co.uk. Each month, John Baron will be joining former Investors' Chronicle editor John Hughman to discuss the big themes dominating the investment landscape and the important issues affecting the sector, while explaining how these are influencing the way the website's ten live investment trust portfolios are being managed. In our first episode, we'll be setting the scene about the thinking behind the website's portfolios and how they can help private investors achieve their financial goals; asking why Investment Trusts; and discussing the importance of diversification relative to remit; before focusing on the outlook for smaller companies and precious metals (and commodities in general).

HHI is an investment company that aims to provide high income and capital growth by investing primarily in UK equities and fixed interest assets. Managed by Janus Henderson Investors, the company focuses on companies that offer strong dividend yields, sustainable earnings, and potential for long-term growth. It diversifies its portfolio across various sectors, blending larger, well-established companies with smaller, higher-growth ones. In this interview, manager David Smith tells John Hughman how the company has delivered 11 consecutive years of income growth; the rationale behind the recent merger of Henderson Diversified Income into Henderson High Income, and the benefits including increased size, improved liquidity, and cost efficiencies; why the company has recently increased exposure to mid-caps and the real estate sector; and how the group is managing its bond portfolio within the changed interest rate backdrop, notably the improved quality of its holdings.

MRCH is a long-established investment company that has been providing dependable income and long-term capital growth for its shareholders since 1889. Managed by Allianz Global Investors, the company runs a diversified portfolio of high-quality, predominantly UK-listed companies with strong balance sheets and consistent dividend histories. Its primary objective is to deliver a rising income to investors alongside potential capital appreciation – and with 42 consecutive years of dividend increases under its belt, the company is one of the AIC’s Dividend Heroes. In this interview we speak to Simon Gergel, manager of the Merchants Investment Trust and head of UK equities at Allianz, about how investment trusts’ revenue reserve structure makes them the perfect vehicle for delivering reliable income; why sound capital management is one of the key attributes he looks for in a bottom-up approach to identifying investments; the trust’s value-led approach, and the current attractions of more cyclical UK sectors including housebuilding, financials and real estate; and why a more stable economic and political outlook alongside depressed valuations underpins his present optimism about UK equities.

Established in 1996, EOT is a European focused investment company which looks for what it describes as ‘special’ growth companies that are expected to experience higher than average earnings growth. The managers take a conviction approach, running a portfolio of between 25 and 35 positions. In this interview we speak to Chief Investment Officer Alexander Darwall about the company’s investment philosophy, emphasizing a long-term approach that focuses on identifying special companies with sustainable competitive advantages (citing examples like Novo Nordisk and Darktrace); the importance of patience and not panicking during market highs or lows; the challenges posed by macroeconomic factors in Europe, and how the company mitigates these by investing in globally diversified companies; and why he avoids sectors like utilities and commodities, instead favouring businesses with strong industry positions and pricing power.

RTW is a listed investment company focused on advancing medical innovation in order to transform patients' lives. Established in October 2019, it has become the second-largest biotech fund in London after acquiring investment company peer Arix Bioscience at the start of 2024. The company's objective is long-term capital appreciation by forming, building, and supporting world-class biotech, biopharma, and med-tech companies. In this interview, John Hughman speaks to Woody Stileman, Managing Director of Business Development at RTW Investments, manager of RTW, about its data-driven approach in identifying underappreciated investment opportunities across various modalities and therapeutic areas; its ‘full lifecycle’ strategy that involves investing in public equities, venture investing, royalties, and company creation; the advantages brought by its extensive global network, including relationships with entrepreneurs, scientists, and universities; and why, after a difficult few years for biotech investing, the managers are optimistic about the future of biotech investments, driven by continued innovation and potential recovery in the IPO market