Issuu

Newsletter October 2023

5/10/21

1/1/22

5/4/22

1/7/22

5/10/22

1/1/23

5/4/23

1/7/23

5/10/23

FTSE 100

7077

7385

7614

7169

7053

7452

7663

7532

7452

FTSE All Share

4044

4208

4239

3941

3849

4075

4162

4096

4032

Dow Jones (US)

34315

36338

34641

30775

30274

33147

33483

34408

33120

S&P 500 (US)

4346

4766

4525

3785

3783

3840

4090

4450

4258

Nikkei 225 (Japan)

27822

28792

27788

26393

27121

26095

27813

33189

31075

PIMFA Balanced

1711

1849

1806

1665

1639

1661

1698

1692

1682

Regulatory disclaimer: This newsletter is provided solely to enable clients to make their own investment decisions. The information within this list does not constitute advice or a personal recommendation, or take into account the particular investment objectives, financial situations, or needs of individual clients. It may therefore not be suitable for all recipients. If you have any doubts as to the suitability of this service, you should seek advice from your investment adviser. The past is not necessarily a guide to future performance. The value of investments and the income from them can fall as well as rise and investors may get back less than they originally invested. Certain Investment Trusts will permit using gearing as an investment strategy. Gearing is a strategy which involves borrowing money to increase holdings of investments or investing in warrants or derivatives. Such a strategy is likely to result in movements in the price of the relevant security being amplified significantly and may be subject to sudden and large falls in value and investors may get back nothing at all. Any tax rates and reliefs are those currently applying, are dependent on individual circumstances, and could be subject to change. All estimates and prospective figures quoted in this list are forecasts and are not guaranteed. Within our advisory service we offer advice on a wide range of investments including shares, corporate bonds, gilts and managed funds. Within the RDR our advisory service is recognised by the FCA as a ‘restricted’ service as we do not offer advice on the whole of the financial planning market which includes products such as life policies and personal pension schemes. Barratt and Cooke is the trading name of Barratt & Cooke Limited. Registered in England No. 5378036. Barratt & Cooke Limited is authorised and regulated by the Financial Conduct Authority, who are based at 25 The North Colonnade, Canary Wharf, E14 5HS Source: Iress and FTSE International Limited (‘FTSE’) © FTSE 2020. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and /or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and /or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

It never rains but it pours In over 20 years of employment at Barratt & Cooke I can seldom recall a time when there wasn’t something to worry about in financial markets.

Yet with the advancement of technology and algorithmic trading (computer software automating trading instructions with no human input) it feels like everything happens so much more quickly now. Following the global pandemic, financial markets have been served up a war in Eastern Europe, the most aggressive increase in interest rates since the 1940s and the US Government has just come within days of a financial shutdown. No wonder once ‘rocksolid’ institution Credit Suisse defaulted after 166 years of business. I very much doubt they will be the last financial company to default in this economic cycle either. This menu of events has caused significant volatility in financial markets, with investor sentiment seemingly focussed entirely on each and every data print (employment, inflation, GDP etc) rather than the underlying progress reported by individual companies. It was a year ago that the Truss/Kwarteng administration almost brought down the UK pension fund industry and Sterling flirted with parity against the Dollar. Though Sterling then recovered strongly, touching £/US$1.31 in July, and recent GDP data has been surprisingly positive (revised figures show the UK economy has grown faster than previously estimated since the start of the pandemic), the combination of stubbornly high domestic inflation, a deteriorating housing market and political uncertainty with a General Election on the horizon has seen the Dollar reassert itself in the currency war at £/US$1.21 currently.

The US economy has remained remarkably resilient this year, supported by their unemployment rate remaining at historically low levels (3.8%). This is partially due to higher interest rates having had a limited impact on consumer spending as a result of the structure of the US mortgage market, where fixed terms are for 20 years or longer. This is in contrast to the UK mortgage market where the majority of borrowers are on 2-5 year fixed terms and therefore face significantly higher mortgage costs as their fixed terms expire. As the US economic outlook has improved, yields on US Treasuries have risen markedly from their May lows, compounded by comments at the July Federal Open Markets Committee meeting (their version of the Bank of England) intimating that the prospect of a forthcoming recession is less likely, despite inflation remaining persistent and above target. This led to expectations that interest rates would remain ‘higher for longer’ and has subsequently been priced into currency (as above) and fixed income markets: 4th May 2023

5th October 2023

US 2 Year Yield

3.74%

5.02%

US 5 Year Yield

3.28%

4.69%

US 10 Year Yield

3.35%

4.72%

Following the global pandemic, financial markets have been served up a war in Eastern Europe, the most aggressive increase in interest rates since the 1940s and the US Government has just come within days of a financial shutdown. Barratt & Cooke Newsletter October 2023

As Treasury yields have moved higher (i.e. capital prices have fallen) the impact on equity valuations and sector performance has been striking. Essentially, in recent months equity market returns have been generated by a very concentrated group of companies: 4th May 2023 – 5th October 2023 Local Currency

Sterling

NASDAQ

+10.47%

+14.25%

S&P500

+4.85%

+8.43%

Magnificent 7 equal weighted

+30.60%

+35.06%

FTSE100

-3.25%

-3.26%

FTSE250

-8.55%

Stoxx600 (Europe)

-4.13%

-5.26%

MSCI All-World

+0.67%

+4.11%

The magnificent seven (Amazon, Alphabet, Apple, Meta, Microsoft, Nvidia and Tesla) represent over 25% of the S&P500 index and have propelled the US market higher and, by virtue of their dominance globally, have also flattered returns for global markets (as shown by the MSCI All-World Index). The success of Artificial Intelligence (AI) platforms, such as ChatGPT (owned by Microsoft), highlight the exponential growth opportunities for AI related stocks, yet the aforementioned level of concentration within US markets (by company and sector since all seven could be considered software companies) is extreme, close to a record high and higher than at the peak of the technology bubble in 1999. It would

not be appropriate to position client portfolios with this level of concentration from a risk management and diversification perspective, whilst in some cases valuations now look very stretched. Additionally, it was not that long ago that Netflix shares fell from $680 to $190 or Tesla shares fell from $380 to $120. Extreme share price movements in the software and technology sector can work both ways. The prospect of a ‘soft landing’ for the US economy, along with an unexpected extension to crude oil production cuts into 2024 from the OPEC+ member countries, has seen the oil price rise towards almost $100/barrel (+25% in recent months). This will further squeeze economic growth, but in the interim oil stocks remain buoyant. It has therefore been a challenging few months, on a relative basis, for quality equity based portfolios as higher Treasury yields have been reflected in equity valuations, currency fluctuations have also distorted underlying performance and index returns have been driven almost entirely by a concentrated group of technology and energy stocks. However, our investment mandate is typically for the medium to long term, and time horizon is incredibly important when constructing equity based portfolios. A study conducted by MSCI, which looked at global equity returns between 1994 and 2015 (which includes the huge volatility of the dot.com boom and bust and the Great Financial Crisis in 2008/9), identified returns being driven by a combination of dividend yield, dividend growth and valuation.

100%

6.9%

90% 80% 70%

21.4% 51.1%

41.6%

43.0%

64.5%

60% 50%

59.6%

40% 30%

41.0%

38.5%

16.8%

19.8%

19.0%

3 Years

5 Years

10 Years

37.5%

20% 10% 0%

11.4% 1 Year VAL ADJ

DIV GRW

DIV YLD

28.6%

20 Years Source: MSCI

Barratt & Cooke Newsletter October 2023

For short term (one year) periods changes in valuations (i.e. P/E multiples expanding or contracting) represented 51.1% of the return profile. However, over longer term time horizons valuation adjustments become less relevant, with dividend yield and most importantly dividend growth becoming the driver of overall equity returns.

This is comforting information given our investment philosophy of seeking long term growth in capital and income, predominately via investment into resilient, global companies which are able to withstand adverse economic conditions and benefit from long term growth opportunities. Such companies typically produce prodigious amounts of free cash flow which can be used to reinvest within their businesses at attractive rates of return and crucially support reasonable and progressive dividends. Within client portfolios there is an increasingly long list of equities which have generated multi-year dividend growth records.

Equities with 4 years+ consecutive dividend growth 70 60

34 35

Roche

Coloplast

Novartis

Nestle

PepsiCo

Croda

Novo-Nordisk

Spirax-Sarco

Diploma

Nike

Intertek

Microsoft

Experian

CME Group

Mastercard

MSCI

Schneider Electric

Atlas Copco

Verisk Analytics

Visa

RELX

Wolters Kluwer

Years

Halma

Colgate

Becton Dickinson & Co

Diageo

Church & Dwight

Equities Source: Internal (N.B. there are several more companies with 10yr+ dividend records but which held their dividends for one year during the Covid pandemic)

As such, despite the recent challenging period for equity valuations, we remain steadfast in our belief that now is not the time to let short term market gyrations influence a long term investment strategy. As Charlie Munger, Warren Buffett’s right-hand man, famously opined, “It is better to own a wonderful company at a fair price, than a fair company at a wonderful price.”

It is better to own a wonderful company at a fair price, than a fair company at a wonderful price.

Barratt & Cooke Newsletter October 2023

We believe client portfolios are generally invested in wonderful businesses, with core exposure to the following themes.

Digitalisation and the move to a cashless society Even in the most venerable of Norfolk retail establishments, we are now greeted with the sign ‘Card payments only’. Indeed, the move from a cash based to cashless society and the digital revolution is being driven by widespread use of secure and convenient digital payment options, such as mobile wallets and contactless cards. Moreover, with over five billion internet users globally, the number of people making transactions online is steadily rising as global internet access and usage soars, and is further accelerated by the demographic shift in consumer behaviour with younger generations favouring cashless options. Governments are also enacting laws to cut down on the use of cash, in order to stop tax evasion and encourage financial transparency.

Such measures support expectations for the digital payment market to grow at a compound annual rate of 11.8% through to 2027. Given this structural backdrop we are comfortable holding both Mastercard (which enables half of all card transactions globally) and VISA (the world’s largest payments company with annual payment volumes of $11.6tn), not least since they also offer a natural inflation hedge; when consumers fill up their car with fuel or purchase groceries etc these payment processors take their percentage of each inflated debit or credit card transaction.

Connectivity and data

Healthcare

You only have to stroll along Gentleman’s Walk in Norwich to evidence the constantly connected world in which we now live – I doubt you will see anyone looking up at our beautiful Norwich skylines. Instead people bump into each other without taking their eyes off their mobile devices. Heaven only knows what they are looking at!

The global population breakdown by age shows approximately half of the world’s population is in the working age bracket between 25 and 65, suggesting huge future demand for healthcare services, medications, and medical equipment to manage agerelated health conditions.

Much as the world has been hooked on oil for the last century, data is rapidly becoming the most valuable commodity for the future, as revolutionary technologies such as AI and machine learning effectively leverage large databases of information, providing insights and automation opportunities. Additionally, the broad deployment of super-fast 5G networks now support over 55% of the global population in utilising the mobile internet. We have long held Microsoft in client portfolios given their dominance in business and home computing. More recently we have added Alphabet which, alongside the core Google search engine, has been proactive in developing new products to assist businesses to solve problems using AI, such as Translation Hub which can be used to translate documents into 135 languages at previously unimaginable scale and speed.

Coloplast is the global market leader in the Ostomy and Continence Care markets, with an approximate 40% market share, which are expected to grow at around 5% annually for the foreseeable future. The company has an enviable record of consistent revenue growth (only once in twenty years has it been below 5% and that was in Covid) which has supported a progressive multi-year dividend growth record. Though their share price performance has been disappointing in recent months, as margins have come under pressure from rising input costs and currency headwinds (Danish Kroner strength) have driven earnings expectations lower, we remain comfortable holders for the longer term given the structural demographic backdrop.

Barratt & Cooke Newsletter October 2023

Consumer staples

Fixed income

In the inflationary world in which we live, imagine being able to sell bags of air! That is essentially what PepsiCo now do, as ‘shrinkflation’ (reducing the product content without reducing the price to offset rising input costs) means I regularly have to fight the urge to open a second bag of Walker’s crisps with my lunch, having eaten the 12 or so crisps contained in the first bag.

Our positioning within fixed income markets has been tactical, initially remaining in short dated holdings (redemption dates in the next few years) in order to limit the risk to capital of rising interest rates. As yields have since risen, we have gradually introduced slightly longer dated exposure, such that many portfolios will now hold a ‘ladder’ of redemption dates through to 2028/2030. Alongside this, we have modest exposure to corporate bonds, though with credit spreads remarkably tight (i.e. the returns from corporate bonds are only narrowly greater than the equivalent dated Government Treasury stock) alongside the risk that sharply higher interest rates has not yet been fully felt we generally favour dated gilts when adding to fixed income allocations.

Despite the challenging economic backdrop, businesses such as PepsiCo continue to report resilient, predictable results whilst innovation and a focus on delivering what consumers want, such as more nutritious snacking and zero sugar offerings, ensures they continue to dominate their end markets. We hold diversified exposure to the consumer staples sector encompassing beverages, food, hygiene and personal care products where the underlying companies typically hold number one positions in their categories, have terrific brands and far-reaching distribution networks, allowing access to the expansion of middle-class populations in emerging nations; a tantalising prospect. In the short term the valuations of these stocks and sectors will fluctuate, but over the longer term there are clear structural tailwinds which should support attractive shareholder returns.

Company engagement by Edward Sidgwick As you would anticipate, alongside robust due diligence ahead of making investments on behalf of clients, we not only follow company developments very closely, ensuring that our original investment thesis remains on track, but, where appropriate, we also engage with company management to help contribute to the future direction taken. This is a key function in our role as custodian of clients’ investments.

This engagement can often set Barratt & Cooke aside from peers in the industry, whereby, despite our smaller size, we seek to ‘punch above our weight’ when it comes to our due diligence and associated engagement with company management. Much of this work goes on ‘behind the scenes’ and we therefore felt it helpful to provide two examples of recent engagement, in seeking to improve the outlook of investments held by our clients.

Barratt & Cooke Newsletter October 2023

Both of the examples below are companies structured as Investment Trusts, a collective (or pooled) investment, managed by a third party investment firm (e.g. JP Morgan), with an independent Board of Directors providing oversight. Our engagement is typically at both tiers of management, with the asset manager in question and with the Board. As a longstanding investor in, and advocate of, Investment Trusts, Barratt & Cooke enjoys a strong network and good access to the various teams in question.

Whilst the companies in question have continued to deliver attractive dividend income, and indeed relatively resilient underlying asset performance, they have struggled in share price terms in recent months. This divergence between share price and asset value reflects weaker sentiment towards ‘alternative’ income bearing assets (e.g. infrastructure assets and property assets) as interest rates have risen and the returns available on cash and gilts have improved. These investments are held across client portfolios (where appropriate) and also within the WS Opie Street Funds.

Our engagement is typically at both tiers of management, with the asset manager in question and with the Board.

JP Morgan Global Core Real Assets Limited (JARA)

Renewables Infrastructure Group Limited (TRIG)

This investment trust provides investors with access to otherwise inaccessible JP Morgan managed funds invested in property, infrastructure and transportation assets across the US and Asia. JP Morgan is one of the largest and best resourced asset managers globally, not least in these ‘real assets’, hence a very credible counterparty for our clients.

This investment trust provides investors with exposure to a portfolio of operational wind farms in Western Europe, with a predominant focus on offshore assets in the UK (as a part owner of the Sheringham Shoal wind farm, for example).

We have engaged with the Manager (JP Morgan) and Board of Directors in recent months in an effort to improve the fortunes of JARA, and the appeal of the strategy to other investors (which, with our clients in mind, could lead to a re-rating in the share price as wider sentiment improves). A key outcome of this engagement has been a shift in portfolio construction, with an increasing allocation to infrastructure and transportation assets (which we deem of greater interest than property assets), as well as action taken to buy back shares (where the current discounted share price to the underlying asset value presents an attractive opportunity for the company to buy in its own shares, marginally increasing residual shareholders’ ownership of the company’s assets).

Whilst there remains clear government interest in increasing the mix of the country’s energy supply towards renewable energy (despite the government’s recent backtracking on some associated policies). This is a sector facing challenges, including the rising cost of installing and maintaining offshore assets, with the ‘allowed’ prices/profits for renewable energy, set by the government, not keeping pace. Our research team attended a site-visit to Equinor’s operational base at Great Yarmouth (see photo of members of our team with the ESVAGT servicing vessel), which is the servicing centre for the Sheringham Shoal wind farm (and indeed the Dogger Bank wind farm), co-owned by the Renewables Infrastructure Group. This visit provided a valuable opportunity to engage with the key firms and individuals tasked with managing these assets, gaining a greater understanding of current industry dynamics, challenges and opportunities.

Barratt & Cooke Newsletter October 2023

In both of the aforementioned cases, our ongoing due diligence and engagement points to an attractive longer term outcome for these investments, despite weaker recent share price performance. We continue to follow and engage with interest.

Barratt & Cooke Newsletter October 2023

Branding and staffing by William Barratt

As you know Will Mellor writes the October newsletter. We brought in this initiative 5 years ago as it is a welcome relief for clients to read a different style and, in addition to contributions from other analysts and Investment Managers, it helps to demonstrate that the investment decision really is a pooled effort. I did however feel that on this occasion I should contribute to one of ‘WJM’s’ newsletters. By now you will be starting to get familiar with our new brand and as I said in the letter when we launched it we hope you like it. Anyone who has been through a similar process will know of the challenges faced during projects and the disproportionate amount of stress! Whilst the Investment Managers have been sounding boards for the rebranding process and have provided some guidance, it has been the operational team headed by Miles Piercy and Sam Barratt, supported by the IT team, who have really driven things forward. I am hugely grateful for this. This is a process of ‘keeping up’ but I do however assure you, again, that our ethos remains exactly the same. Indeed, the words that appear next to our logo in our office window “Traditional values, Modern thinking” is something we have focussed on for many years and will continue to do so.

Along with a change in brand we have been fortunate enough to recruit a number of new members of staff, from graduates to the experienced. I shall not name them one by one but over the course of time I look forward to you getting to know them. As he has been an Investment Manager for a number of years, and is soon to become a portfolio manager here, it would however be remiss of me not to welcome Paul Pearce though. Some of you may have heard Paul talking about Stockmarkets on Radio Norfolk in the past. Paul has jumped into Barratt and Cooke life full bore, inviting fellow professionals to present here so we can all learn from them, and batting at number 4 in our annual cricket match against Brown & Co. I’m not sure Joe Root needs to worry! The aspect I am most pleased about is the energy of all our newer members of staff, not least because the younger individuals have really embraced an 8:00–17:30 job in an office rather than the dreaded ‘working at home’ culture. They all enjoy the team ethic and of course the occasional beer on a Friday night, further building a team bond. They have good innovative ideas and importantly have a voice which, coupled with a bit of ‘nous’ in the building, makes for a positive environment for us to work to our common goal; to serve our clients better and better, day by day.

The words that appear next to our logo in our office window, ‘Traditional values, Modern thinking’, is something we have focussed on for many years and will continue to do so.

Barratt & Cooke Newsletter October 2023

Conclusion I am somewhat less confident than the global central bank policymakers that the ‘goldilocks’ scenario of higher interest rates, modest GDP growth, low unemployment and benign inflation can be achieved. Indeed, we are currently in the ‘higher for longer’ interest rate phase (I appreciate 5% isn’t particularly high by historic standards but it is, relative to recent times), yet it wasn’t all that long ago that financial commentators were confidently predicting ‘lower for longer’ interest rates. If you put 10 economists in a room you’ll almost certainly get 11 different answers! To my mind there is no doubt that inflation and higher borrowing costs are not only squeezing individual incomes but also corporate profits, whilst in the UK property prices are starting to reflect the significant economic and political uncertainty which lies ahead. Yet following the recent contraction in equity market valuations I believe, in many cases, these concerns are now discounted. Moreover, as alluded to above we have limited exposure to companies which are overly sensitive to economic conditions, instead focussing on those rare gems which have the ability to compound value despite economic conditions, rather than because of economic conditions.

The recent share price performance, if not operational performance, of many such stocks has been a little disappointing, but as former US President Lyndon B Johnson once said, “Yesterday is not ours to recover, but tomorrow is ours to win or lose.” I suppose this is as pertinent in life as the stockmarket. Much like Luke Donald’s team of Gladiators in Rome, we proceed with diligence, courage and conviction to give ourselves the best possible chance of victory. William Mellor October 2023

Yesterday is not ours to recover, but tomorrow is ours to win or lose.

Barratt & Cooke Newsletter October 2023

October 2023 equity suggestions FTSE 100 companies

Price 5/10/23

Yield

52 week High Low

BEVERAGES

Diageo PLC Ordinary Shares

3056p

2.6%

3882p

2997p

CHEMICALS

Croda International PLC Ordinary Shares

4734p

2.3%

7270p

4242p

FINANCIAL SERVICES

London Stock Exchange PLC Ord Shares

8080p

1.4%

8818p

7051p

FOOD PRODUCERS

Unilever PLC Ordinary Shares

4031p

3.7%

4483p

3798p

HOUSEHOLD GOODS

Reckitt Benckiser PLC Ordinary Shares

5820p

3.2%

6570p

5502p

INDUSTRIALS

Halma PLC Ordinary Shares Spirax-Sarco Engineering PLC Ord Shares

1938p 9292p

1.0% 1.7%

2520p 12350p

1870p 9132p

LIFE ASSURANCE

Phoenix Group Holdings PLC Ord Shares

458p

11.4%

647p

449p

MEDIA

RELX PLC Ordinary Shares

2852p

2.0%

2876p

2124p

MINING

Anglo American PLC Ordinary Shares Rio Tinto PLC Ordinary Shares

2109p 4958p

4.9% 6.5%

3699p 6406p

1952p 4425p

NONLIFE INSURANCE

Admiral Group PLC Ordinary Shares

2353p

3.7%

2487p

1793p

OIL & GAS

Shell PLC Ordinary Shares

2533p

3.8%

2664p

2150p

PHARMACEUTICALS

AstraZeneca PLC Ordinary Shares

10902p

2.2%

12390p

9500p

SUPPORT SERVICES

Bunzl PLC Ordinary Shares Experian PLC Ordinary Shares Intertek PLC Ordinary Shares Diploma PLC Ordinary Shares Rentokil Initial PLC Ordinary Shares

2933p 2719p 4124p 2902p 603p

2.2% 1.6% 2.7% 1.9% 1.3%

3225p 3160p 4549p 3346p 664p

2603p 2537p 3485p 2222p 461p

UTILITIES

SSE PLC Ordinary Shares

1515p

6.4%

1919p

1405p

FTSE 250/small cap/AIM companies HOME CONSTRUCTION

Persimmon PLC Ordinary Shares

1027p

7.8%

1531p

953p

TECHNOLOGY

Keywords Studios PLC Ordinary Shares Softcat PLC Ordinary Shares

1385p 1419p

0.2% 1.7%

1549p 3056p

1043p 1270p

BEVERAGES

PepsiCo Inc Cap

13167p

3.2%

16015p

12784p

FINANCIAL SERVICES

CME Group Inc Common Stock Visa Inc Common Stock Mastercard Inc Common Stock MSCI Common Stock

17057p 19201p 32419p 40966p

2.1% 0.8% 0.6% 1.1%

17428p 20018p 33755p 47248p

13795p 15541p 24644p 34268p

HEALTHCARE PRODUCTS

Coloplast Common Stock IDEXX Laboratories Inc Common Stock

8475p 35406p

2.7% -

11752p 43955p

8357p 28221p

HOUSEHOLD PRODUCTS

Church & Dwight Co Inc Common Stock

7421p

1.2%

7919p

6216p

INDUSTRIALS

Atlas Copco Class A Common Stock Xylem Inc Common Stock Otis Worldwide Corp Common Stock

1095p 9014p 6508p

1.6% 1.5% 1.7%

1218p 9708p 7311p

774p 7353p 5562p 10043p

Overseas companies#

Schneider Electric SE Shares

13349p

2.0%

14432p

MEDIA

Wolters Kluwer NV Shares

10223p

1.6%

10916p

8309p

PERSONAL GOODS

Estee Lauder Common Stock L’Oreal Common Stock LVMH Moet Hennessy Louis Vuitton SE Shares Nike Inc Common Stock

11628p 33892p 62406p 7878p

1.9% 1.5% 1.7% 1.4%

23068p 39173p 80055p 10690p

11361p 26247p 51484p 7269p

PHARMACEUTICALS

Novartis CHF Registered Shares Novo Nordisk DKK Series B

7848p 7384p

3.7% 1.1%

8047p 7953p

6267p 4529p

SUPPORT SERVICES

Verisk Analytics Inc Common Stock

19625p

0.7%

20080p

14027p

TECHNOLOGY

Alphabet Inc Common Stock A ASML Holding NV Common Stock Microsoft Inc Common Stock

11108p 47493p 26264p

0.8% 0.9%

11334p 60345p 28127p

7044p 32496p 18209p

# Dividends on overseas holdings will be subject to withholding tax at the local rate

Barratt & Cooke Newsletter October 2023

Price 5/10/23

Collective investments UK

Yield

52 Week High Low

Discount/ (Premium)

Mercantile I/T

189p

3.9%

224p

163p

14.2%

Throgmorton I/T

551p

2.1%

670p

489p

5.3%

GLOBAL

Biotech Growth Trust I/T Impax Environmental Markets I/T JP Morgan Global Growth & Income I/T Keystone Positive Change I/T Scottish Mortgage I/T Smithson I/T

746p 363p 461p 198p 667p 1254p

1.2% 3.8% 0.2% 0.6% -

1000p 461p 484p 229p 834p 1489p

743p 357p 394p 182p 605p 1120p

6.5% 6.9% 0.8% 6.8% 18.5% 13.2%

EMERGING MARKETS

Schroder Asian Total Return I/T

402p

2.7%

457p

367p

5.5%

WS OPIE STREET FUNDS

WS Opie Street Balanced Fund Acc. Shares WS Opie Street Balanced Fund Inc. Shares WS Opie Street Growth Fund Acc. Shares WS Opie Street Growth Fund Inc. Shares WS Opie Street Income Fund Acc. Shares WS Opie Street Income Fund Inc. Shares

402p 361p 431p 420p 370p 345p

3.2% 0.9% 3.8%

433p 395p 466p 456p 396p 377p

381p 352p 408p 400p 351p 339p

3.7% 7.0%

347p 139p

277p 100p

Alternative investments INFRASTRUCTURE

3i Infrastructure PLC I/T Renewables Infrastructure Group Ltd I/T

303p 101p

PRIVATE EQUITY

Pantheon International

291p

305p

230p

REAL ESTATE

TR Property I/T

270p

5.7%

350p

254p

69.5p

5.0%

74.8p

67.6p

Fixed interest investments CORPORATE BOND

GOV. STOCK

Premier Miton Corp Bond Monthly Income

4.25% Treasury 2027 0.125% Treasury 2028

Price 5/10/23

Gross Interest Yield

Gross Redemption Yield

Payment Dates

Redemption Date

£99.25 £83.36

4.3% 0.1%

4.4% 4.4%

Jun/Dec Jan/Jul

7 Dec 2027 31 Jan 2028

Inflation Rate* 3% 5% INDEX LINK.

0.125% Treasury I.L. 2028

£130.88**

0.1%

3.7%

5.6%

Feb/Aug

10 Aug 2028

GOV. STOCK

4.125% Treasury I.L. 2030

£334.30**

3.4%

3.9%

5.7%

Jan/Jul

22 Jul 2030

* Equivalent Gross Redemption Yield for Index Linked Gilts assuming RPI inflation averages 3% or 5% to redemption. ** Price adjusted for inflation (please note the published price may be different as it does not include accrued inflation)

Source: Iress and FTSE International Limited

Barratt & Cooke Newsletter October 2023

FTSE 100 – previous quarter 7800 7700 7600 7500 7400 7300 7200 7100 05/07/23

05/09/23

05/08/23

05/10/23

FTSE 100 – 1 year 8250 8000 7750 7500 7250 7000 6750 05/10/22

05/04/23

05/01/23

05/07/23

05/10/23

FTSE 100 – 5 year 8500 8000 7500 7000 6500 6000 5500 5000 4500 05/10/18

05/10/19

05/10/20

05/10/21

05/10/22

05/10/23

Barratt & Cooke Newsletter October 2023

Barratt & Cooke is the trading name of Barratt & Cooke Limited Registered in England No. 5378036. Registered Address: First Floor Suite, 2 Hillside Business Park, Bury St. Edmunds, Suffolk, IP32 7EA. Barratt & Cooke Limited is authorised and regulated by Financial Conduct Authority, whose address is 12 Endeavour Square, London, E20 1JN. Barratt & Cooke Limited is a Member of the London Stock Exchange

5 Opie Street, Norwich, Norfolk NR1 3DW 01603 624 236 barrattandcooke.co.uk