VO L 2 7 / I S S U E 2 8 / 1 7 J U LY 2 02 5 / £ 4 .

4 9

EMERGING
MARKETS
COMEBACK
WEIGHING THE PROSPECTS
FOR A CONTINUED RECOVERY
Contents
05 EDITOR’S VIEW
Hefty tariffs on EU imports to US
might be good news for British
businesses
16
NEWS
07 New tariffs threaten European,
Canadian and Mexican trade with
the US
08 Bitcoin prices set record as
investor bet big on ‘crypto week’
09 Infrastructure group Galliford
Try hits five-year high on raised
guidance
09 ‘Ugly’ update sends former ad
giant WPP’s stock to 15-year low
10 Can MONY maintain
momentum with its first-half results?
11 Lockheed Martin’s Q2 clues to
US defence spending regime

GREAT IDEAS
12 Genus is on the cusp of a
transformation to sustainably higher
profitability
14 Personal Group is a small cap
with big ambitions

UPDATES
15 Rockwood Strategic is
rewarding investors with a stellar
returns

FEATURES 22
16 COVER STORY
EMERGING MARKETS COMEBACK
Weighing the prospects
for a continued recovery
22 What cleaner accounts might
be telling investors about long-term
shareholder value

25 FUNDS
When should you give an
underperforming fund manager the
boot?

27 DAN COATSWORTH
Housebuilders: what’s holding back
the sector and what could drive a
recovery
25 31
31 ASK RACHEL
How do the carry-forward rules on
pension contributions work?

33 INDEX
Shares, funds, ETFs and investment
trusts in this issue

17 July 2025 | SHARES | 03

 Contents

Three important things in this week’s magazine

EMERGIN
Feature:
Clean ac
counts

MARKET G
Funds: Un
What cle When sh derperfor
mers
be tellin aner accounts underpe ould you give a
g invest might
manage rforming fund n

COMEBA S
long-term ors
shareho about r the boo
t?
The way
a compa lder valu Determi

T
e
ny presen ning when
ts its numb str uggling inv to cal

CK
his feature ers can rev estment l time on a

I
looks
for compan at the incr eal mo re than yo vehicle
easing u think
financial figuies to present adjust trend n his latest
per res and/or ed sharehold semi-annual letter
whether it formance measu APM (alternative ers
another spe , Terry Smith has
to
res
themselve may say something ) and asks
WEIGHIN s. about the Fundsmith ll of underperforma out
laid

FOR A CO G THE PROSPEC

For examp companies fund fell beh Equity (B4 nce for the
1YB
unadjusted le, do companies amount, just ind the MSCI Wo W7) fund. The
rld Index by
NTINUED TS wh
investment numbers make bett ich provide However,
this
2% in the
first six
years of fail comes on the bacmonths of this yea
a modest goes thro
ugh a diffi
RECOVER Fund ma
s? er long-te
rm ing to bea k r.
questions cult
DIY investo patch, there are
Y
By Ian Con
believes thanager David Beggs
‘Compani t may be the at San
case, tellingdford DeLand
t the global of four calendar
stock marke
t.
help them rs can pon
or twist. come to a decision der which will
on wheth
also
es Fu ndsmith
way and Sab
uhi Gard financials which report clea Shares: Equity
er to stick
are n,
– but they increasingly rare unadjusted (p) MEASURIN

T
often prove in tod
to be among ay’s market The first thinG PERFORMANCE
hanks to a the most 700 Fund pric g to do is assess per
driven by topsy-turvy start to e
what ultimamovements up and formance proper
a
administraticombination of thethe year, horizon SANDFO
RD DELAN you’re eva tely matter most down are clearly
ly.
on’s unp new US s and reasse 600
lua to
on
inflation and trade and foreign redictable policies should allocate the ssing how and wh OF CLEAN D EXAMP
LES to compar ting an active ma investors, but if
e
and conflict the rise of geopol relations, sticky With the ir capital. ere they
GAMES WO
ACCOUN
TS benchmark performance to annager, you need
, investors itic world ma US representing clos The largest RKSHOP factsheet, . Often this will be appropriate
are broade al uncertainty rke but sho
ning their developed t cap and more tha e to 60% of UK Buffettoholding in the
2021 fund groups do be a bit carefu wn on the fund’s
Emerging areas whichmarket indices, atte n 70% of global
2022
2023
to the fun provide performancl as sometimes
developed markets outper mig ntio (FUND:BF logy Fund Source: 2024
d sector the
ht n is y sit in. Thi e compared
2025
terms of gro offer turnin 0LD LSEG
be a bad com
markets form wth and valubetter opportunities g to One of few Z3).
2025 so far in One area e. in companies successfu Investors but it probab parator, depend s might not
relatively which has long bee l lon ly won’t be ing on the
produces which still ‘Clean fina g-term investment their own in Fun dsm ben chm as goo sector,
conclusion ith Equity will no dou

1
speaking,

2 3
n neglected, ark
strong bus ncials can be an ind s.’ on the fact , which will norma d as the official
MSCI Eme
However, is a
rging Mar
since the EM or emerging ma black-and- traditional wider que s. But this bt draw lly
trusts, it’s sheet. When lookin at least be stated
kets iness fran
MSCI Wor
ld started to
change.
turn of the
yea rkets. wh
report wit ite annual high-qual chise that icator of a manager
stion of how doe
long you s tap into the the NAV (ne
r that has ity is g at
110 According h
images or no glossy need for “smearnings consistent able to deliver wh
investors, o is underperformi should give a fun which you t asset valu investment
to sho
Companies) the AIC (Assoc
iation of Inv
distraction
s. “adjustme oothing” by the CFOly without the Favourite
like those
who put togng. Professional
d manager’s uld focus on, e) retu
if you’re ass rn
trusts record, global emerging estment nts” each
year,’ explain in the form of Fun
to face, and ds list, will interro ether the AJ Bell includes moperformance. The essing a
ma SOFTCAT sha
against 7% ed an average retu rket equities s Beggs. which the vements in the disc re price return
100
Held in the THE ‘RAW’ out the pre analyse their funds gate managers face
a whole. for the investment rn of 11.4% UK Companies AND THE ‘COOKED’ looking for cise reasons for und in detail, finding expected
fund manag ount and
trust univer Consistent Buffettology Fun to control er can’t realisticall premium,
90 Investment se as financials. ly well-run busine d. under the are required to pre knitting. signs the manager erperformance, and All active . y be
were among trusts focused on ss with clea Companies pare annual isn’t stickin of underp managers will go thro
choose wh
months to the best perform Chi nes e equities n ich accoun Act 2006, but they accounts Replicating g to their erfo rma nce, so you ugh per
Jan
ers JAMES HA In the UK ting standar can the everyd this approach is too much
shouldn’t iods
again com June, with an averag in the six
Feb Mar abo
2025 Apr May fort Held in the LSTEAD under the and Europe, compan ds to use. cha
the time oray investor, who doe llenging for falls behind ut a short spell
wh worry
Jun Jul wider trust ably above the avee return of 14.6%, UK IFR
Standards S (International Fin ies report analysing resources to dedicatsn’t usually have performanc its benchmark. As en the fund
Rebased space. rage for the Family bus Buffettology Fun ) well as tota
to 100
Even em financial con iness with a long d. GAAP (Ge standards while in ancial Reporting fun
profession ds in such forensic e themselves to annual per e over a given tim l
considered erging market debt, nerally Acc the US firm e
too, which formance over the period, consider
Chart: Shar
es magazin servatism track record me ept s ally selecte detail. Tha
e • Source:
LSEG investors, high-risk by most wh ich is and clean
reporting.
of asu res. ed Acc ounting Prin use Favourite
Funds, can d fun ds lists, like t’s why
factsheet. is normally presen
last five yea
is fixed inco It may see ciples) investors be a AJ Bell’s ted rs
flows reboun‘showing signs of me a nuanced m reasonable for to check on. helpful
But when resource for which has
Con sider if the on
re was one the fund
life bee
and 2Q inve ding sharply sinc , with fund far from perview of performanc
companies a fund ma underperfo n res ponsible for bad year
stment per e the fect e (accoun to offer nager
done otherwrmance, and how most of the
formance end of April 22 | SHARES base forecas ), but the tan
outpacing
that
| 17 July 2025 ts on adjust issue is analysts tents are ise. the fund has
ed number d
s which me to
ans

Why emerging markets are Why it pays to own companies Knowing when to sell an
17 July 2025 17 July 2025
| SHARES | SHARES
| 17 | 25

back on investors’ buy lists with clean accounts underperforming fund or trust
The first half of this year has seen When companies repeatedly adjust All active managers go through
a revival of interest in emerging their earnings for so-called ‘non- periods of underperformance, but
markets, which in turn has recurring items’ it can be difficult judging when to give them the
generated a revival in performance, to get a clear picture of how the benefit of the doubt and when to
as global investors look for business is really doing. We cut call it a day is by no means easy.
alternatives to the tired narrative of through the morass to reveal the We look at the factors which can
‘US exceptionalism’. companies with ‘clean’ accounts. help you make the crucial decision.

Visit our website for more articles

Did you know that we publish daily news stories on our
website as bonus content? These articles do not appear
in the magazine so make sure you keep abreast of market
activities by visiting our website on a regular basis.
Trustpilot shares soar on upgraded full
Over the past week we’ve written a variety of news stories year 2025 guidance
online that do not appear in this magazine, including:

Experian notches up new year high B&M sinks as weak first-quarter sales Barratt Redrow shares hit 12-month
after strong Q1 and margin warning spook investors low on disappointing update

04 | SHARES 17 July 2025

 Editor’s View: Tom Sieber

Hefty tariffs on EU
imports to US might
be good news for
British businesses
One analyst thinks there is only one clear
recommendation today – ‘buy UK’

A
s we write, the UK has put itself in a there is one clear recommendation: Buy UK.’
pretty rare position by virtue of already Klement spells out how his third point could
having thrashed out a trade agreement work over time. Noting that, because the UK is
with the US. subject to 10% tariffs from the US and exports from
The Trump administration continues to make the EU to US are typically 10%, EU manufacturers
threats of hefty levies on imports elsewhere, as Ian could ship goods from the EU to the UK, do what’s
Conway explains in this week’s News section, with required to make them goods which could qualify
the EU and Mexico facing 30% tariffs based on the as being made in the UK, then ship them to the US.
latest pronouncements from the White House. The argument against this is the unpredictability
The apparently harsh treatment of the EU could of President Trump and a potential change in
be to the benefit of the UK according to Panmure government in 2028, or an outcome in the mid-
Liberum analyst Joachim Klement. term elections next year which leads to a less
Klement acknowledges there could be compliant Congress.
considerable movement between now and the 1 These possibilities could put companies off
August deadline, when said tariffs are set to come making long-term decisions around investing in
into force, but examines how things might play out manufacturing and logistics infrastructure in the UK
based on the current rhetoric. to benefit from any arbitrage on tariffs.
‘We emphasise three key points,’ says Klement. Nonetheless, and amid plenty of bad news for
‘One, if the tariffs are implemented as threatened, UK plc of late, it will be interesting to see if this
the US will almost certainly go into recession in country can genuinely be a long-term beneficiary of
2026 and see inflation spike above 4%; two, UK the trade war.
stocks should outperform European peers because

I
thanks to the trade deal between the US and n this issue we look at emerging markets
the UK, trade uncertainty is much lower for UK and whether the nascent recovery in the
businesses; and three, if the tariffs remain in place first part of 2025 can continue, and also
for longer, there is an arbitrage opportunity for consider the importance of how a company
European business to divert exports to the US via handles its accounts. Martin Gamble hears from
the UK, creating a large need for investments in the a fund manager about things to look out for in
UK in the next three to five years.’ accounting and highlights some examples of best
Klement concludes: ‘As the world stands today, and worst practice.

17 July 2025 | SHARES | 05

 WATCH RECENT PRESENTATIONS
Custodian Property Income REIT (CREI)
Richard Shepherd-Cross, Investment Manager
Custodian Property Income REIT (CREI) aims to
be the REIT of choice for private and institutional
investors seeking high and stable dividends from well
diversified UK real estate.

Brunner Investment Trust (BUT)

Julian Bishop, Co-lead Portfolio Manager
Brunner Investment Trust (BUT) Come rain or shine,
the expertly managed Brunner Investment Trust
aims to thrive in all market conditions. It has stood
firm in the face of changing economic seasons,
volatility and market fluctuations to protect, nurture
and grow shareholders’ investments. With a track
record spanning more than five decades of increasing
dividend payments, we’ve earned recognition
as a dependable ‘dividend hero,’ steadfast in our
commitment to long-term wealth creation.

Shepherd Neame (SHEP)

Jonathan Neame, CEO & Mark Rider, CFO
Shepherd Neame (SHEP) is Britain’s Oldest Brewer,
based in Kent since 1698. The Company brews,
markets and distributes its own beers to national and
export customers under a range of highly successful
brand names including Spitfire, Bishops Finger,
Whitstable Bay and Bear Island.

Visit the Shares website for the latest company CLICK

TO PLAY
presentations, market commentary, fund manager EACH
interviews and explore our extensive video archive. VIDEO
SPOTLIGHT

www.sharesmagazine.co.uk/videos
 News

New tariffs threaten

European, Canadian and
Mexican trade with the US
Trump gives countries a deadline of 1 August to reach a deal

A
nother week and another round of US and Japan, as well as looking to deepen trade
tariffs on imports, with the White House relationships with India and countries in South-East
threatening a 35% levy on Canada and Asia.
30% on goods from the EU (European EU competition chief Teresa Ribera told
Union) and Mexico. Bloomberg TV: ‘We need to explore how far, how
The three regions are major trading partners deep we can go in the Pacific area with other
with the US, so if the tariffs are implemented as countries.’
planned on 1 August it would mean a significant Meanwhile, European Commission chief
increase in the price of goods and therefore Ursula Von der Leyen told reporters the EU
inflation, but in his usual style President Trump has would continue to suspend its current trade
said he might make changes or he might not. countermeasures against the US, which would
The Financial Times quoted a US administration impact around $25 billion of goods, until the start
official as saying the tariffs on Canada would likely of August to allow for further talks.
be waived for goods which comply with the 2020 The UK, which imports more from the US than it
trade agreement signed by Trump, which could exports, has just a 10% tariff on goods and services,
blunt their impact, but no final decision had which makes it a clear winner if the status quo is
been made. maintained.
According to the Department of Commerce, Stock markets, which might have been expected
Canada had a trade surplus of just $36 billion last to sell off as they did in April after the ‘Liberation
year, while the EU and Mexico ended 2024 with Day’ announcement, have instead powered to new
trade surpluses of around $148 billion and $176 highs, leading analysts to raise their year-end price
billion, although they still trailed China which had a targets for the S&P 500 index.
surplus of $262 billion. The acid test for investors will be the second-
The EU, the biggest trading partner with the US, quarter earnings season, which kicked off this week
is reportedly stepping up efforts to engage with with the major US banks including JPMorgan Chase
other countries hit by tariffs, including Canada (JPM:NYSE) and Wells Fargo (WFC:NYSE). [IC]
Trade in goods and services with the US in 2024
Trade in goods and services with the US in 2024
Trade in goods and services with the US in 2024
US imports from US trade balance
US exports to ($bn) US imports from
($bn) US trade balance
($bn)
US exports to ($bn) ($bn)
US imports from ($bn)
US trade balance
European Union US exports to ($bn)
666.7 ($bn) 815.2 ($bn) −148.4
European Union 666.7 815.2 −148.4
Canada
European 440.7 476.7 −36.0
Canada Union 440.7
666.7
476.7
815.2 −148.4
−36.0
Mexico
Canada 384.9
440.7 560.7
476.7 −175.9 −36.0
Mexico 384.9 560.7 −175.9
China
Mexico 199.3 384.9 461.4
560.7 −262.2 −175.9
China 199.3 461.4 −262.2
UK
China 179.5
199.3 162.2
461.4 −262.2 17.3
UK 179.5 162.2 17.3
UK 179.5 162.2 17.3
Note: a minus figure represents a US trade deficit
Note: a minus figure represents a US trade deficit
Source: US Department of Commerce, Bloomberg
Source: US Department
Note: a minus of Commerce,
figure represents Bloomberg
a US trade deficit
Source: US Department of Commerce, Bloomberg
17 July 2025 | SHARES | 07
 News

Bitcoin prices set record as

investor bet big on ‘crypto week’
US lawmakers to debate cryptocurrency
framework that could provide crucial Bitcoin
reassurance for markets ($)

B
itcoin vaulted past $120,000 for the first
100K
time on 14 July, the latest milestone for
the world’s largest cryptocurrency as 80K
investors bet on industry policy wins in
what been dubbed ‘crypto week’. This is a banner 60K
being used to describe a series of debates by US
lawmakers that could lay the foundations for a long- 40K
sought regulatory framework on digital assets. 20K
‘Donald Trump has talked about making America
the crypto capital of the world, and now the market 0
is hoping those words become reality’, wrote Dan 2021 2022 2023 2024 2025
Coatsworth, investment analyst at AJ Bell.
Bitcoin rose to register a record high of Source: LSEG
$123,153.22 before easing and was last noted
trading at $117,124.20, marking an 11% rally over
the past month. The cryptocurrency is now up more debt, which is high and set to go even higher.
than 25% so far in 2025. Bitcoin is seen as a portfolio diversifier and a ‘just
‘Crypto week’ will see US lawmakers debate a in case’ store of value in a similar vein to gold, albeit
range of issues, including three pieces of new a highly volatile one. While bitcoin valuation
legislation; the Clarity Act, the Anti-CBDC is driven purely by speculation, interest
Surveillance State Act, and the Senate’s continues to grow in cryptocurrency assets.
Genius Act. ‘There are now various investment
‘After years of dedicated work in funds that track the bitcoin price and that
Congress on digital assets, we are gives investors more choice in how they
advancing landmark legislation to establish get exposure. It’s made it a lot easier to take
a clear regulatory framework for digital assets a position and that has helped to drive up
that safeguards consumers and investors, provides demand and push up the bitcoin price,’ wrote AJ
rules for the issuance and operation of dollar-backed Bell’s Coatsworth.
payment stablecoins, and permanently blocks the But lots of UK investors still rely on ‘bitcoin
creation of a Central Bank Digital Currency (CBDC) to proxies’ to gain exposure, shares in listed companies
safeguard Americans’ financial privacy,’ said House who own large slugs of bitcoin and/or other
Committee on Financial Services chair French Hill. cryptocurrencies. Wall Street-listed Strategy
Despite ongoing uncertainties around trade (MSTR:NASDAQ) has seen its stock surge 50% this
tariffs, economic growth and geopolitical issues, year and 180% over the past 12 months for this
investors appear to be hedging their bets by piling reason, regularly among the most traded US equites
into bitcoin. Even though equities have been moving on the AJ Bell platform. [SF]
higher as markets appear to shrug off the latest tariff
news, investors know they cannot rule out Donald DISCLAIMER: Financial services company AJ Bell
Trump taking a completely new direction with trade referenced in this article owns Shares magazine.
discussions and doing something out of the blue. The author of this article (Steven Frazer) and the
There are also growing concerns about US national editor (Tom Sieber) own shares in AJ Bell.

08 | SHARES | 17 July 2025

 News

Infrastructure group Galliford Try hits

five-year high on raised guidance Galliford Try
(p)
Second increase to full-year forecasts in less than
six months
400
In case investors were in any would be above the top end of
doubt as to which part of the UK the latest estimates, which sit at 350
construction market looks most £1.885 billion and £41.6 million,
attractive, infrastructure and civil respectively. 300
engineering firm Galliford The raised outlook, the second
Try (GFRD) laid that to from the firm after it lifted 2025
rest this morning with forecasts at the beginning of
another increase to March, sent the shares to a Source: LSEG
full-year revenue, new five-year high of 441p
margin and earnings on the day (9 July). and security of future workloads well
guidance. Chief executive Bill beyond the current financial year’.
Ahead of the release Hocking said the group’s The firm also said stronger trading
of its results for the first-half performance gave meant it would deliver ‘further
financial year to June, the it the confidence to ‘improve margin progression towards our
company said thanks to its water expectations’, while its recent major 2030 sustainable margin target of
contracts and ‘solid’ highways framework wins and the size of its 4.0% and previously communicated
delivery, revenue and pre-tax profit order book provided ‘clear visibility margin target of 3.0% in 2026’. [IC]

‘Ugly’ update sends former ad

WPP
giant WPP’s stock to 15-year low
(p)
Second-quarter client spend and net
new business below expectations 800

In a disappointing six-month trading before factoring in foreign currency

update (9 July), global media group headwinds. 600
WPP (WPP) said it had seen a The firm also reduced its guidance
deterioration in performance for full-year like-for-like
as the second quarter had revenue and operating 400
progressed. profit, predicting 2025
As a results, it lowered ‘continued macro
its first-half like-for-like uncertainty weighing on Source: LSEG
revenue guidance to a client spend and weaker
drop of 4.2% to 4.5%, with net new business than quarter to be similar to the first quarter,
a second-quarter decline in originally anticipated’. performance in June was worse than
the region of 5.5% to 6%, below Chief executive Mark Read anticipated and we expect this pattern
its previous forecast. commented: ‘Since the start of the of trading in the first half to continue
At the same time, headline year, we have faced a challenging into the second half.’
operating profit for the first half is trading environment with macro WPP shares fell more than 100p or
seen between £400 million and £425 pressures intensifying and lower net 19% to a post-financial crisis low of
million, consistent with a margin new business. 426p on the day of the announcement,
decline of 280 to 300 basis points ‘While we expected the second finishing the week lower still. [IC]

17 July 2025 | SHARES | 09

 News: Week Ahead

UK Can MONY maintain momentum

UPDATES with its first-half results?
OVER THE
NEXT 7 The price comparison website
helped households save a record MONY Group
DAYS £2.9 billion last year
(p)
FULL-YEAR RESULTS Moneysupermarket owner MONY
22 July: Metir, Group (MONY) is due to report first-
Severfield, TheWorks, 220
half year results on 21 July.
Van Elle
Investors will be looking to see 200
FIRST-HALF RESULTS whether the price comparison site
21 July: MONY Group can continue the strong trading
Oct Jan Apr Jul
22 July: Me Group momentum demonstrated in 2024 2025
International February when the company
23 July: Breedon reported record group revenue of Source: LSEG
24 July: Centrica, £439.2 million for the year ending 31
Howden Joinery, Lloyds December. and home services divisions, with
Banking, Primary
Back in May, the company only travel letting the side down
Health Properties,
Reach, Relx
delivered more good news to due to UK consumer uncertainty
investors by reaffirming its full-year and a challenging economic
TRADING forecast. backdrop.
ANNOUNCEMENTS The company expects adjusted MONY also said recently its £30
22 July: BT, Compass, EBITDA (earnings before interest million share buyback programme
Kier, Vodafone, taxation depreciation amortisation) is progressing well with more than
Wetherspoon for 2025 to be in line with market £8 million worth repurchased to
24 July: Wizz Air expectations (in the range of £143.1 date and confirmed it is on target to
million to £151.7 million). conclude in late 2025.
The company delivered a robust William Tamworth, co-manager
performance in the first four months of Artemis UK Future Leaders (AFL)
of the year in its insurance, money, says: ‘[The company] has consistently
What does the market expect generated strong cash flows – we
What does the market expect
from
What MONY
does the market expect estimate a free cash flow yield
from MONY of 9% – and has a very strong
from MONY balance sheet. This gives the
2024A 2025E 2026E
2024A 2025E 2026E business options: either to invest,
Revenue (£m) 2024A
439 2025E
449 467 to do M&A or to return surplus
2026E
Revenue (£m) 439 449 467
Net Profit(£m)
(£m) 80.6 94.4 101.1
cash to shareholders: it’s currently
Revenue 439 449 467
Net Profit (£m) 80.6 94.4 101.1 one of the record numbers of
19.1 small caps buying back shares.
Earnings
Net Profitper
(£m) 80.6 94.4 101.1
Earnings 14.9 17.7
share (p) per 14.9 17.7 19.1 ‘We are particularly excited
share (p) per
Earnings
14.9 17.7 19.1 by the opportunity from
Dividend
share (p) per
Dividend 12.5 12.9 13.6 SuperSaveClub – which now has
share (p) per 12.5 12.9 13.6
13.6 1.3 million members. This has
share (p) per
Dividend
12.5 12.9
share (p)
Company's financial year-end is December
the potential to reduce MONY’s
Company's financial year-end is December
Source: Stockopedia
reliance on Google and drive
Company's financial
Source: Stockopedia year-end is December greater repeat business.’ [SG]
Source: Stockopedia

10 | SHARES | 17 July 2025

 News: Week Ahead

Lockheed Martin’s Q2 clues to

US defence spending regime
Analysts think company will face
slowing growth during rest of 2025
Lockheed Martin
If the global defence sector is ($)
undergoing a paradigm shift
driven by geopolitical tensions and 600
technological innovation, Wall Street-
listed Lockheed Martin (LMT:NYSE) 550
is a critical player, not that you would
have guessed so by recent share price 500 US
performance.
While European defence firms like 450
UPDATES
Babcock (BAB) and BAE Systems OVER THE
(BA.) have been going gangbusters NEXT 7
Oct Jan Apr Jul
in 2025, Lockheed is down 3% year
to date in spite of record US defence
2024 2025 DAYS
budgets. Compare that to the VanEck Source: LSEG QUARTERLY RESULTS
Defence (DFNG), the UK’s biggest 18 July: 3M,
sector-themed ETF, which has rallied American Express,
42% this year. Even by the standards US political pressure for nations like Charles Schwab,
of its US peer group Lockheed has the UK, Germany and France, to close Schlumberger, Truist
been poor, with rivals RTX (RTX:NYSE) the defence spending gap (currently Financial
and Northrop Grumman (NOC:NYSE) 1.9% to 2.3%) towards the US’s 3.4% 21 July: Domino’s
up 26% and 10% respectively so far in of GDP and beyond. Pizza, NXP, Roper
Technologies, Verizon
2025. First-quarter revenue and earnings 22 July: Baker Hughes,
Quite why is a bit of a mystery, as beat analyst expectations in April, Capital One Financial,
we head towards second quarter growth and margins were typically Chubb, Coca Cola,
earnings (22 July, the same day as its robust and there is some excitement Danaher, Equifax,
two peers, interestingly). True, much around Lockheed’s Conventional General Motors,
of Europe’s defence rally comes from Prompt Strike programme, a ground- Lockheed Martin,
What does the market expect based hypersonic missile Philip Morris, Texas
What
from does
Lockheed the market expect
Martin expect system, to act as an Instruments
What does
from Lockheed Martin the market important growth catalyst 23 July: AT&T, Chipotle
Mexican Grill, Freeport-
from Lockheed Martin going forward. McMoran, General
Q2 FY FY Execution may be the
2025E
Q2 2025EFY 2026EFY Dynamics, Hasbro,
perceived sticking point, Hilton Worldwide, IBM,
Q2
2025E FY
2025E 2026E FY
Revenue (£m) n/a
2025E 74,381
2025E 2026E and whether Q2 results
77,155 Moody’s, Raymond
Revenue (£m) n/a 74,381 77,155 will underscore its strategic James Financial,
Net Profit(£m)
($m) n/a 6367 6821
Revenue n/a 74,381 77,155 positioning to capitalise on a Rollins, ServiceNow,
Net Profit ($m) n/a 6367 6821
Earnings
Net Profitper($m) n/a 6367 6821
decade of modernisation or Tesla, Thermo Fisher
6.42 27.12 29.75
share ($) per
Earnings
6.42 27.12 29.75
face the slowing of growth Scientific
24 July: Blackstone,
29.75 through the second half of
Earnings
share ($) per
6.42 27.12 Dow, First Solar,
share ($) financial year-end is December
Company's the year, as many analysts Honeywell, Intel, Keurig
Company's
Source: financial
Zacks, year-end is December
Stockopedia appear to predict, based on Dr Pepper, Mastercard,
Company's
Source: financial
Zacks, year-end is December
Stockopedia Koyfin consensus data. [SF] Nasdaq, VeriSign
Source: Zacks, Stockopedia

17 July 2025 | SHARES | 11

 Great Ideas: Investments to make today

Genus is on the cusp

of a transformation
to sustainably higher
profitability
Firm expects to have 80% of US sows on
its PRP programme by 2030

Genus
(GNS) £23.91
Market cap: £1.58 billion

L
eading global animal genetics company
Genus (GNS) is on the cusp of fully
commercialising its proprietary PRP (PRRS
or Porcine Reproductive and Respiratory
Syndrome virus-resistant pig) technology.
This could be transformational for farmers in
the porcine industry who have seen their herds
decimated by the virus over many years.
A recent study from Iowa State University
reported the devastating virus costs $1.2 billion per advantage for producers who adopt it, plus it has
year in the US alone. the potential to transform the profitability of Genus.
PRP should provide a material competitive The US FDA (Food and Drug Administration)
approved the use of Genus’ gene editing technology
for use in the food supply on 30 April 2025, earlier
Genus than anticipated.
(p) This gives Genus the green light to begin
6,000
exploiting the opportunity, although there is still
work to be done in terms of getting regulatory
approval in the key US export markets of Canada,
5,000
Mexico and Japan, with announcements expected
in 2025.
4,000 PRP has already been approved in Brazil,
Columbia and the Dominican Republic, while
3,000 progress is also being made in China.
Analysts at Peel Hunt believe Genus has spent
2,000 more than £80 million over the last decade
developing its proprietary gene editing technology.
2021 2022 2023 2024 2025 The company has a strong intellectual property
portfolio protecting the technology with 43 patents
Source: LSEG issued in 37 countries.
Shore Capital’s Sean Conroy is of the view US

12 | SHARES | 17 July 2025

 Great Ideas: Investments to make today

farmers to control the sex of their cow’s offspring.

Genus financial forecasts The genetics industry has increasingly adopted
a royalty income model which today represents
2025 2026 2027 around 85% of global volumes and as much as 97%
of volumes in the US market.
Sales
668.2 698.5 730.2 Typically, a fee is paid at the time of delivery on
(£m) the cost of goods sold, followed by ongoing royalty
Adjusted fees paid when value is delivered (pigs weaned, pigs
pre-tax marketed, sows used).
67 75 84
profit Genus believes the advantages of this model
(£m) outweigh an upfront pricing model as it better
aligns with customer benefits and value,
Year End: June incentivises more frequent genetic updates and
Source: Peel Hunt generates steadier revenue and profit.
The model also ensures income is independent
of commodity prices, although if farmers cannot
regulation could extend Genus’ position as the operate at a profit, it does indirectly impact the
‘leading authority’ on porcine genetics for decades demand for Genus’ services, as seen in China during
to come. 2023 and 2024.
Analysts at Peel Hunt and Panmure Liberum For example, in 2023 pig prices were very volatile,
believe the full financial benefits of PRP are impacted by the African Swine Fever and changing
equivalent to between £11 and £12 per share, with Covid-19 policies. Prices trended down and by the
little of the incremental value discounted in the end of the year were below the cost of production,
current share price. causing farmers not to replace or rebuild their sow
At a capital markets day in November 2023, herds.
Genus showed PRP could have a material impact For the six months to the end of December 2024,
on revenue growth and margins, potentially tripling Genus booked royalty revenue of £87.3 million, up
operating profit in its pig division over the next 5% on the prior year and equivalent to around a
decade, and doubling group operating profit. fifth of group revenue.
The financial benefits from the PRP programme
are expected be seen from 2027 onward, based STRATEGY AND FINANCIALS
on a calendar 2026 launch. The company’s strategic priorities are to
Meanwhile, the shares trade more achieve stable growth in China, the
than 60% below their peak in 2021 world’s biggest pig market, improve
and earnings are depressed. margins and returns in bovine and
After a two-year cycle of deliver a successful commercialisation
downward earnings revisions, a of its PRP programme.
new upcycle is within reach as the In a trading update on 15 July Genus
underlying business stabilises and the upgraded full year adjusted pre-tax
emerging PRP opportunity starts to be profit guidance to ‘at least’ £68 million.
reflected in financial forecasts. The company also noted strong free cash
flow and a reduction in leverage to less than 1.6
ROYALTY INCOME MODEL times at year end.
Genus also operates in dairy and beef herd genetics In summary, we believe little of the potential
to help farmers select the best animals for breeding incremental benefits from the PRP programme and
by identifying and selecting desirable animal traits improved efficiencies are yet to recognised, giving
for animal wellbeing, productivity and resilience to long-term investors a low-risk entry point.
disease. One risk to be aware of is the ongoing tariff
The company has patents on its breeding stocks uncertainties, given the global export nature of pork
and related technologies like Sexcel, which allows and beef products. [MG]

17 July 2025 | SHARES | 13

 Great Ideas: Investments to make today

Personal Group is a small cap with

big ambitions Personal Group
Company is targeting a substantial (p)
increase in revenue and profit by the
end of this decade 350

Personal Group
(PGH:AIM) 284p 300

Market cap: £86.7 million 250

W
orkplace benefits and health
insurance provider Personal Group
200
(PGH:AIM) is a relative market
minnow but chief executive
Paula Constant and chief financial officer Sarah 150
Mace have big ambitions for the business. We
2021 2022 2023 2024 2025
think these ambitions are worth backing for
investors, particularly with the valuation looking Source: LSEG
undemanding. Consensus forecasts put the
shares on 11.6 times 2026 earnings and have
them offering a yield of 6.9% based on next year’s The Sage Employee Benefit scheme for SMEs
dividend. boosted annual recurring revenue by 10% last year
The duo aim to achieve £100 million of revenue and increased insurance sales by 18%. A customer
by 2030, more than twice what it made in 2024. retention rate running above 80% shows how much
The hope is this will translate into £30 million of the client base values the service.
EBITDA (earnings before interest, tax, depreciation Behind the scenes there has been some tangible
and amortisation) or three times what it made progress too. There has been a real emphasis on
last year. securing recurring revenue streams and reducing
As well as lifting revenue 13% and EBITDA 29%, the seasonality in the business while, at the same
the firm won multiple industry awards in 2025. time, together with making the balance sheet more
Significantly it also built on its existing relationship robust.
with FTSE 100 accounting and financial software The full-year dividend was hiked 41% to 16.5p –
firm Sage (SGE) and delivered the best ever months ahead of the 32% increase in basic EPS (earnings
of leads in November and December. per share) from operations. There should be
That momentum has carried through into the capacity to increase the amount it doles out to
current year. Paula Constant says the firm is ‘on shareholders from here too. As at the end of
a great organic trajectory’, with its offering really December the firm had cash and bank deposits of
chiming with customers. more than £25 million and zero debt.
‘We are completely focused on winning new Dividends are likely to come before M&A in
partnerships, maximising the value of our Sage the list of priorities. Constant says any potential
relationship and winning new insurance business,’ transaction ‘would have to be absolutely right’ to
says Constant. justify the effort, the money and the drain on the
Among the roster of existing staff benefit partners executive team’s time and resources. The size of
are B&Q, British Airways, DHL, Mitie (MTO), Ocado the existing addressable market and the significant
Retail and Royal Mail. Personal Group also counts potential to grow the business organically are
universities and museums among its clients. clearly at front of mind for management. [IC]

14 | SHARES | 17 July 2025

 Great Ideas Updates

Rockwood Strategic is rewarding

investors with a stellar returns
Our late 2023 ‘buy’ call on the value-focused small caps fund is 65% in the money

Rockwood Strategic Rockwood Strategic

(RKW) 310p (p)
Gain to date: 65.3% 300

S
hares flagged the merits of Rockwood 280
Strategic (RKW) at 187.5p in November
2023, highlighting the value-focused trust
260
as a way to gain differentiated exposure to
a small cap asset class with re-rating scope.
We lauded manager Richard Staveley’s tried-and- 240
tested strategy, which identifies undervalued stocks
where the company will benefit from operational, Oct Jan Apr Jul
strategic or management changes that can unlock 2024 2025
or create value for investors.
Source: LSEG
WHAT HAS HAPPENED SINCE WE SAID TO BUY?
Rockwood Strategic has cemented its position as
one of the very best performing UK smaller division and cost-saving plan which Staveley
company trusts and the shares have helped to instigate; he has booked some
responded positively post results (18 profits but continues to hold the stock.
June) for the year to March 2025.
These revealed NAV total WHAT SHOULD INVESTORS
returns of 21%, which compares DO NOW?
to the 1.2% average of the AIC’s Stick with Rockwood Strategic,
(Association of Investment whose premium to NAV has
Companies) UK Smaller Companies allowed the trust to issue shares to
sector. Rather than being generated help sate investor demand. Staveley
by M&A as in past reporting periods, insists: ‘A concentrated portfolio, full
the returns were driven by holdings of incredibly undervalued equities, is
delivering strong operational performance, now in place, with identifiable catalysts
in many cases instigated by Staveley. ‘This has across our investments to unlock, create or realise
since been recognised by other investors leading value for shareholders.’
to share price recoveries,’ points out Kepler analyst Among the new holdings seeding returns for
Ryan Lightfoot-Aminoff. ‘As such, we believe holders of Rockwood are outsourcing business
these results demonstrate the repeat potential Capita (CPI), regional venture capital provider
of Richard’s approach, as whilst M&A can often Mercia Asset Management (MERC:AIM) and
be sporadic and reliant on external factors, the Kooth (KOO:AIM), a digitally led hybrid service
heavy engagement approach means value can be providing mental health services to young
extracted from holdings in a variety of backdrops.’ people, which Staveley believes has significant
One of last year’s best performers was Funding growth opportunities in the US and the rest of
Circle (FCH), aided by the sale of a loss-making the World. [JC]

17 July 2025 | SHARES | 15

 EMERGING
MARKETS
COMEBACK
WEIGHING THE PROSPECTS
FOR A CONTINUED RECOVERY
By Ian Conway and Sabuhi Gard

T
hanks to a topsy-turvy start to the year, horizons and reassessing how and where they
driven by a combination of the new US should allocate their capital.
administration’s unpredictable policies With the US representing close to 60% of
on trade and foreign relations, sticky world market cap and more than 70% of global
inflation and the rise of geopolitical uncertainty developed market indices, attention is turning to
and conflict, investors are broadening their areas which might offer better opportunities in
terms of growth and value.
Emerging markets outperform One area which has long been neglected,
developed markets so far in relatively speaking, is EM or emerging markets.
However, since the turn of the year that has
2025 started to change.
MSCI Emerging Markets MSCI World According to the AIC (Association of Investment
Companies), global emerging market equities
trusts recorded an average return of 11.4%
110
against 7% for the investment trust universe as
a whole.
100 Investment trusts focused on Chinese equities
were among the best performers in the six
months to June, with an average return of 14.6%,
90
again comfortably above the average for the
Jan Feb Mar Apr May Jun Jul wider trust space.
2025 Even emerging market debt, which is
considered high-risk by most fixed income
Rebased to 100 investors, is ‘showing signs of life, with fund
Chart: Shares magazine • Source: LSEG flows rebounding sharply since the end of April
and 2Q investment performance outpacing that

16 | SHARES | 17 July 2025

 new multipolar reality of the 21st century, it is
A weak dollar has often been up to BRICS to help bring it up to date.’
good news for emerging In a sign of the group’s growing importance
markets on the global stage, Trump was moved to
respond within hours, warning he would punish
US dollar index MSCI Emerging Markets countries aligning themselves with the ‘anti-
140
American policies’ of the BRICS with extra tariffs,
as usual with no further clarification.
Against this backdrop, Shares took the
120 opportunity to canvass opinion among fund
managers as to why emerging markets had
100 begun to outperform and why investors should
think about allocating money to them.
80
‘THE STARS ARE ALIGNED’
2015 2020 2025
‘The stars seem to be aligned’ for emerging
Rebased to 100 markets, says Chris Tennant, who co-manages
Chart: Shares magazine • Source: LSEG the £540 million Fidelity Emerging Markets
(FEML) investment trust with Nick Price.
of developed market fixed income indices,’ Tennant acknowledges a weaker US dollar has
according to analysts at Jefferies. been an important driver for emerging markets
As the analysts go on to point out, this this year, but argues it isn’t the only one.
resurgence ‘has been underpinned by a ‘Some easing of trade tensions, renewed
weakening US dollar, which, historically, has focus on technological innovation, and relatively
supported EM asset valuations and investor cheap valuations are some of the other reasons
appetite for the asset class’. why emerging markets have outstripped
the MSCI World Index so far this year.’
A GROWING VOICE Tariff announcements have led to heightened
volatility in equity markets, but Fidelity
As this month’s BRICS summit in Brazil Emerging Markets has the ability to go both
demonstrated, emerging market countries long and short stocks which helps it capitalise on
are keen to represent a new front in what is sharp movements.
becoming a ‘multipolar’ world.
The BRICS themselves, which have expanded Fidelity Emerging Markets
significantly from their first summit in 2009 with
the addition of more developing countries, now (p)
represent more than half the world’s population
900
and 40% of its economic output, according to
Reuters.
A joint statement released by the group said 800
the tit-for-tat increase in tariffs sparked by
the Trump administration threatened global
trade, while forums such as the G7 and G20 700
appeared powerless to check the increase in
protectionism.
Brazil’s president Lula da Silva drew parallels 600
between the BRICS and the Non-Aligned
Movement, a group of countries that refused 2021 2022 2023 2024 2025
to be formally aligned with either the US or the
Soviet Union during the Cold War, adding: ‘If Chart: Shares magazine • Source: LSEG
international governance does not reflect the

17 July 2025 | SHARES | 17

 The trust has a bias towards small and mid
caps, but it does invest in large caps, with South BlackRock Latin American
African tech company Naspers (NPN:JSE) and Investment Trust
Taiwanese chipmaker TSMC (2330:TPE) being (p)
two of its biggest holdings, while in China the
450
managers take an ‘active’ approach, shying away
from banks, property and heavy industrials on
concerns of oversupply. 400
Ayush Abhijeet, manager of Ashoka Whiteoak
Emerging Markets (AWEM), also flags valuation
as an important catalyst for the recent 350
outperformance of EM stocks: ‘Emerging markets
are undervalued compared to historical data, 300
which is why countries like China have shown
such strong performance in the last year.’
2021 2022 2023 2024 2025
The trust has significant exposure to Chinese
stocks, including top 10 positions in Alibaba
Chart: Shares magazine • Source: LSEG
(9988:HKG), Tencent (0700:HKG) and Hong Kong
Exchanges and Clearing (90388:HKG).
Taiwanese chipmaker TSMC is also in the top multiple forms such as fallen angels, cyclicals,
10 holdings, while Abhijeet says he is finding special situations and companies with hidden
other attractive opportunities Taiwan as well growth,’ explains German.
as in India where he owns healthcare and Investors are too often swayed by prominent
industrial sectors in India like Hitachi Energy India stories and strong narratives at the country or
(POWERINDIA:NSE). sector level, causing them to overlook exciting
Vera German, manager of the Schroder companies, says the manager.
Emerging Markets Value Fund (BNV5M75), ‘We actively monitor companies which fall
argues EM present ‘a compelling opportunity’ within our criteria and operate in regions or
today, particularly through a disciplined value- countries where investors aren’t looking, but
investing lens. where there are significant growth tailwinds for
‘In emerging markets, “value investing” is often years to come.’
associated with cyclical, state-owned enterprises A prime example is telecoms company Airtel
in sectors like metals & mining or oil & gas. While Africa (AAF), which operates in 14 African
these opportunities exist, deep value can take countries including Nigeria and Kenya and has
grown its top line at around 20% consistently.
This growth doesn’t even account for the
substantial opportunities presented by mobile
money and data centres, argues German.
Conversely, the fund eschews companies it
thinks are expensive, even if they are considered
‘good quality’ businesses and large constituents
in the benchmark, so one notable exception in
the portfolio is TSMC.

THE CASE FOR LATIN AMERICA

Fidelity’s Price and Tennant are overweight Latin
America, viewing Mexico and Brazil in particular
as relative winners from US tariff policy and a
future source of nearshoring for the US.
Specialist manager Sam Vecht, who runs
BlackRock Latin American (BRLA), believes the

18 | SHARES | 17 July 2025

waning belief in ‘US exceptionalism’ favours
other regions, including Latin America. Aberdeen Asian Income Fund
‘Rising uncertainty around trade policy, (p)
governance and debt is prompting a repricing
of US risk premia. While growth has remained 230
resilient due to pandemic-era savings, those
buffers are now exhausted, and sentiment is 220
weakening.’
Key supports, such as government spending 210
and immigration-driven labour supply, face
challenges under a more hawkish Trump 200
administration, says Vecht, leading investors
to reassess US risk and the dollar’s safe haven 190
status.
‘In our view, the world has entered a new
2021 2022 2023 2024 2025
geopolitical era defined by rising tensions
between East and West, with a third bloc
Chart: Shares magazine • Source: LSEG
of politically neutral countries emerging in
between.
‘This third group of politically neutral ‘In Mexico for instance, despite some
countries is well-positioned to benefit from the headline noise, we do not see a major change
ongoing realignment of trade routes and supply in the secular trend of nearshoring of supply
chains,’ adds Vecht, almost echoing the BRICS chains, as Mexico will remain a much cheaper
statement. location to manufacture than the United States.
Emerging markets have historically performed (President) Sheinbaum’s pragmatic approach to
well during periods of lower interest rates and trade negotiations underscores this view.’
a weaker US dollar, as lower rates help foster The trust generated an NAV total return of
growth while a softer US currency can boost 34.2% in US dollar terms in the five months
exports, although there tends to be a high to the end of May compared to a benchmark
degree of dispersion. return of 22.4%.
Even China, which has borne the brunt of The returns have been driven by strong
the tariffs, is an outperformer year-to-date, stock selection within Brazil, which after a
notes Vecht, as the expectation of government poor performance in 2024 due to fiscal issues
stimulus and domestic investor participation and a weakening currency has bounced back
have buoyed the market. significantly in 2025.
‘People tend to overlook the fact that the ‘Our Mexico exposure has also been additive,
China of 2025 is much better prepared and less with strong stock selection in the financials and
reliant on US exports than the China of 2018,’ materials space,’ says Vecht.
adds the manager. It is also worth noting the trust has the
While the trust sees opportunities across flexibility to invest in off-benchmark names,
many countries, Latin America looks particularly a good example being a Uruguayan fintech
well-positioned. Perhaps surprisingly, the MSCI company which has been among the biggest
EM Latin America index has outperformed contributors year-to-date.
broader emerging markets year-to-date by
14.6% as of the end of June, proving to be an A COMPELLING INCOME STORY
unlikely defensive candidate in an increasingly
volatile world. Isaac Thong, recently appointed lead manager
Vecht believes increased geopolitical tension of the £328 million Aberdeen Asian Income
worldwide and the subsequent rewiring of Fund (AAIF) alongside Eric Chan, highlights
global supply chains away from China is already three reasons why emerging markets, and those
benefitting a broader range of emerging in the Asia-Pacific region in particular, are well
markets, ranging from Indonesia to Mexico. placed to meet the needs of income investors.

17 July 2025 | SHARES | 19

 ‘The region continues to lead global GDP
growth, averaging 4% to 5% versus 1.5% to JPMorgan Global Emerging
2% in developed markets. For UK investors Markets Investment Trust
seeking diversification and long-term income (p)
opportunities, Asia offers a compelling blend
of economic growth, innovation and market
150
maturity,’ says Thong.
This stronger growth has spurred corporate
140
governance reforms, with the Asia-Pacific region
(ex-Japan) now contributing 31% of global
130
dividends, on a par with the US.
Finally, dividend volatility is lower than in
120
developed markets – even during Trump’s
previous term, says Thong, MSCI Asia Pacific
ex-Japan showed lower dividend volatility
2021 2022 2023 2024 2025
(1.14%) compared to the S&P 500 (10.15%),
demonstrating its resilience.
Chart: Shares magazine • Source: LSEG
Omar Negyal, manager of the £1.3 billion
JPMorgan Global Emerging Markets Income
Trust (JEMI), says he looks for a combination of Negyal sees opportunities for shareholder
value and quality, prioritising companies returns to rise in Korea and China: ‘There
with good returns on equity, free cash have been corporate governance
flow and positive dividend policies. improvements in Korea, leading
‘We have identified Mexico, to increased shareholder
Indonesia and Korea as compelling engagement, higher payout ratios
markets, with a sector overweight and more buybacks. Chinese
in financials due to good returns companies are also improving
on equity,’ says the manager. shareholder returns by paying
‘Trade tariffs pose challenges, dividends and considering buybacks
but opportunities exist to invest in in response to slower growth.
companies with domestic revenue or by The return profile in China is shifting
being selective among exporting countries, from growth-focused to a balance between
and a weaker dollar could be a tailwind.’ dividends and growth.’
Chetan Sehgal, co-manager of the £1.9 billion
Templeton Emerging Markets Templeton Emerging Markets Investment
Trust (TEM), believes in the long-term emerging
Investment Trust markets as an asset class could offer up to 7% or
(p) 8% yields, although US trade tariffs are a risk to
growth in the short term.
200 ‘We are overweight Korea and Brazil, which
have recovered after a tough period. At
the same time, we have reduced our China
180
exposure and added to our Indian holdings
when the market sold off,’ reveals Seghal.
160 ‘Our standout holdings, however, have been
TSMC, where demand has been driven by the
140 AI (artificial intelligence) boom, along with SK
Hynix (000660:KRX).’
2021 2022 2023 2024 2025 Looking ahead, Sehgal is keeping an eye on
both the Middle East and Eastern Europe in the
Chart: Shares magazine • Source: LSEG hope hostilities cease and opportunities open
up again.

20 | SHARES | 17 July 2025

 THE TARIFF ISSUE
Clearly there is no way round the thorny issue food and agricultural products which are high-
of tariffs, which could disproportionately frequency purchases.
impact certain emerging markets, but with Given wholesalers typically hold a limited
lack of clarity on where the numbers amount of inventory, US retailers will have
might eventually land companies no choice but to pass on the majority
have no choice but to get on with of the price increases which means
the day-to-day running of their consumers will feel the impact
operations. relatively quickly.
Trump’s baseline 10% tariff Coercing foreign companies to
has already raised US revenue relocate factories to the US, which
receipts, and looks certain is one of Trump’s objectives,
to remain in place now that would entail years of planning and
bond and equity markets have hundreds of billions of dollars of
recovered their poise. investment, and is simply not going to
The ‘grace period’ on additional happen on any great scale before the end
reciprocal tariffs was recently extended to of his current term.
1 August, suggesting the US is still open to For now, tariffs haven’t had a measurable
negotiations, while Japan, South Korea and impact on inflation or employment, nor have
Malaysia were sent letters confirming the they had an impact on corporate earnings,
rate which will apply to their exports would and forecasts for the second quarter have
be roughly in line with the ‘Liberation Day’ been lowered sufficiently that a ‘beat’ is
proclamation. almost certain.
However, in what is clearly a politically- As the months roll by, however, US
motivated attack, and without any discussion, consumers are going to experience a steady
Trump has imposed a 50% tariff on goods rise in prices, which could lead to higher-
from Brazil from 1 August, sending its currency for-longer interest rates, a decline in real
and its stock market down. wages, a slowdown in consumption, a rise in
Brazilian exports to the US are small in the unemployment or in a worst-case scenario a
grand scheme of things, but they are mostly full-blown recession.

Top 10 sources of US imports

Country %
Mexico 15.0%

Canada 13.0%

China 8.1%

Germany 4.3%

Japan 4.0%

Switzerland 4.0%

Ireland 3.8%

Taiwan 3.6%

North Korea 3.4%

Vietam 3.2%

Data for January through May

Source: US Census Bureau

17 July 2025 | SHARES | 21

 Feature: Clean accounts

What cleaner accounts might

be telling investors about
long-term shareholder value
The way a company presents its numbers can reveal more than you think

T
his feature looks at the increasing trend
for companies to present adjusted
financial figures and/or APM (alternative
performance measures) and asks
whether it may say something about the companies
themselves.
For example, do companies which provide
unadjusted numbers make better long-term
investments?
Fund manager David Beggs at Sandford DeLand
believes that may be the case, telling Shares:
‘Companies which report clean, unadjusted
financials are increasingly rare in today’s market
– but they often prove to be among the most

SANDFORD DELAND EXAMPLES

OF CLEAN ACCOUNTS

GAMES WORKSHOP
The largest holding in the
UK Buffettology Fund successful long-term investments.’
(FUND:BF0LDZ3). ‘Clean financials can be an indicator of a
One of few strong business franchise that is able to deliver
companies which still high-quality earnings consistently without the
produces a traditional need for “smoothing” by the CFO in the form of
black-and-white annual “adjustments” each year,’ explains Beggs.
report with no glossy
images or distractions. THE ‘RAW’ AND THE ‘COOKED’
Companies are required to prepare annual accounts
SOFTCAT under the Companies Act 2006, but they can
Held in the UK Buffettology Fund. choose which accounting standards to use.
Consistently well-run business with clean In the UK and Europe, companies report
financials. under the IFRS (International Financial Reporting
Standards) standards while in the US firms use
JAMES HALSTEAD GAAP (Generally Accepted Accounting Principles)
Held in the UK Buffettology Fund. measures.
Family business with a long track record of It may seem reasonable for companies to offer
financial conservatism and clean reporting. a nuanced view of performance (accountants are
far from perfect), but the issue is analysts tend to
base forecasts on adjusted numbers which means

22 | SHARES | 17 July 2025

 Feature: Clean accounts

Selection of companies
companies with
with clean
cleanaccounts
accountsin
inShares
Shares’view
view

Company Ticker Market Cap (£bn)

Bioventix BVXP:AIM 0.1

Berkshire
BRK-B:NYSE 759.6
Hathaway

Costco Wholesale COST:NASDAQ 321.8

Games Workshop GAW 5.2

Morgan Sindall MGNS 2.1

Nestle NESN:SWX 183.4

Next NXT 14.9

Procter & Gamble PG:NYSE 272.5

Renishaw RSW 2.1

Unilever ULVR 109.9

Source: Stockopedia, Refinitiv

statutory results tend to get less scrutiny. by private equity firms as a proxy for cash flow,
A knock-on effect is incentives and executive pay allowing them to maximise the amount of leverage
are often based on APM which consequently can they could use.
change company behaviours. However, it has a major drawback, because
We are not suggesting all companies which adjust depreciation is a real business cost.
numbers are bad, simply that cleaner accounts Most firms own assets, and most assets
reflect good corporate governance and a refreshing depreciate with use, so depreciation is a real cost to
honesty with shareholders. a business, and assumptions about the useful life of
As Beggs says: ‘The raw numbers can speak an asset have consequences for reported profits.
for themselves. They suggest strong internal For example, if company A assumes five years
controls, accounting discipline and a conservative of useful life and company B believes seven years
management culture.’ is about right, company A will, all else being equal,
This table aims to provide a list of companies report lower profitability, even though it is adopting
which appear to adopt clean accounts, but it’s also a potentially more prudent approach.
worth discussing some commonly used alternative In any case, why use a proxy for cash when all
performance measures. companies report the real thing? Simply head to the
cash flow statement and look for ‘cash generated
EBITDA IS NOT CASH from operations’ to get a more useful picture.
The late Charlie Munger had an almost pathological Operating cash flow minus normalised capital
candour about him. ‘I think you would understand expenditures (maintenance spending) is often the
any presentation using the word EBITDA if every best measure of sustainable cash flow, although
time you saw that word, you just substituted the few companies divulge their maintenance capital
phrase with bull**** earnings,’ fumed Munger. expenditure.
EBITDA (earnings before interest, tax, Some companies calculate adjusted EBITDA
depreciation, and amortisation) was popularised which usually involves removing one-off, non-

17 July 2025 | SHARES | 23

 Feature: Clean accounts

How WeWork went from a circa $1 billion loss to a $233 million

Community EBITDA profit
($ thousands)

2017

Net Loss −$933,494

Depreciation and amortisation $162,892

Impact of Straight-lining of Rents $272,927

Stock-based compensation $295,362

Other $8,986

Adjusted EBITDA −$193,327

Sales and Marketing $139,180

Growth and new market development $98,3…

Pre-opening community expense $23,039

Other −$17,784

Adjusted EBITDA before growth investments $49,444

General & administration expenses $183,703

Community Adjusted EBITDA $233,147

Source: WeWork

for is when a company is undergoing a multi-year

period of restructuring and regularly excludes the
associated costs.
Sometimes companies get even more creative.
Beggs highlights the example of shared office space
company WeWork which was once valued at $47
billion.
‘WeWork coined the term ‘Community Adjusted
recuring or irregular items. The culprits are typically EBITDA’ when marketing its debut bond offering in
costs related to acquisitions or asset write-downs. 2018, an eyebrow-raising attempt to strip out nearly
This covers a wider category of adjustments all operating expenses,’ says Beggs.
related to non-recurring items, and in some cases It is also worth flagging the significant $300
they can provide a clearer picture of underlying million of stock-based compensation which was
operations. effectively ignored, despite stock compensation
That is not the case with companies which being a real cost.
regularly make acquisitions as part of their growth
strategy. If the same non-recurring items appear
every year, they are clearly part of everyday By Martin Gamble Education Editor
business operations and should be treated as such.
Another potential banana skin for watch out

24 | SHARES | 17 July 2025

 Funds: Underperformers

When should you give an

underperforming fund
manager the boot?
Determining when to call time on a
struggling investment vehicle

I
n his latest semi-annual letter to
shareholders, Terry Smith has laid out
another spell of underperformance for the
Fundsmith Equity (B41YBW7) fund. The goes through a difficult patch, there are also
fund fell behind the MSCI World Index by a modest questions DIY investors can ponder which will
amount, just 2% in the first six months of this year. help them come to a decision on whether to stick
However, this comes on the back of four calendar or twist.
years of failing to beat the global stock market.
MEASURING PERFORMANCE
The first thing to do is assess performance properly.
Fundsmith Equity Fund price movements up and down are clearly
(p) what ultimately matter most to investors, but if
you’re evaluating an active manager, you need
700 to compare performance to an appropriate
benchmark. Often this will be shown on the fund’s
600 factsheet, but do be a bit careful as sometimes
fund groups provide performance compared
to the fund sector they sit in. This might not
2021 2022 2023 2024 2025 be a bad comparator, depending on the sector,
but it probably won’t be as good as the official
Source: LSEG benchmark, which will normally at least be stated
on the factsheet. When looking at investment
Investors in Fundsmith Equity will no doubt draw trusts, it’s the NAV (net asset value) return
their own conclusions. But this does tap into the which you should focus on, if you’re assessing a
wider question of how long you should give a fund manager’s performance. The share price return
manager who is underperforming. Professional includes movements in the discount and premium,
investors, like those who put together the AJ Bell which the fund manager can’t realistically be
Favourite Funds list, will interrogate managers face expected to control.
to face, and analyse their funds in detail, finding All active managers will go through periods
out the precise reasons for underperformance, and of underperformance, so you shouldn’t worry
looking for signs the manager isn’t sticking to their too much about a short spell when the fund
knitting. falls behind its benchmark. As well as total
Replicating this approach is challenging for performance over a given time period, consider
the everyday investor, who doesn’t usually have annual performance over the last five years
the time or resources to dedicate themselves to too, which is normally presented on the fund
analysing funds in such forensic detail. That’s why factsheet. Consider if there was one bad year
professionally selected funds lists, like AJ Bell’s which has been responsible for most of the
Favourite Funds, can be a helpful resource for underperformance, and how the fund has
investors to check on. But when a fund manager done otherwise.

17 July 2025 | SHARES | 25

 Funds: Underperformers

ALL LONG PERIODS OF POOR RETURNS START of the portfolio needing to do a lot of heavy lifting
WITH A SHORT ONE to generate outperformance. The hegemony of
All long periods of underperformance start with a the Magnificent Seven has moderated somewhat
short one, and deciding if and when to pull the plug in 2025, but even if that trend is sustained, it will
is undoubtedly a difficult one. As a fund investor, take some time to feed through into long-term
you have a choice about how to go about things. performance figures.
Either you cut and run at the first sign of trouble,
or you sit and wait it out. If you jump ship quickly, ONE IN, ONE OUT
you might get out of some funds before a long If you sell out of a fund because of under-
downturn in performance, but equally you will miss performance, you’ll need to put your money
some that bounce back. Meanwhile you also rack somewhere else. There are broadly two options if
up trading costs and spend a lot of time and effort you’re staying invested. One is to go for a tracker
moving your portfolio around. You also have to fund, which can be expected to underperform the
switch your money into another fund, and who’s index by a small amount (the annual fund charges)
to say the one you choose is not about to embark each year. This is a wholesale change in approach
a period of underperformance? If you choose the and implies some disillusionment with active
patient route, you avoid these issues. Sometimes management as a whole.
you will hold a fund for longer than you would with The other option is to pick another active fund
perfect hindsight, but in a diversified portfolio, manager, though of course this means you still have
other funds should take up the slack. the possibility of experiencing underperformance.
There’s a real risk here that if you keep moving out
CONSIDER THE MARKET CONTEXT of underperforming funds and into top performers,
It’s also important to consider what’s going you’re selling low and buying high, which can
on in the market and whether that explains have a damaging effect on your wealth over the
underperformance. Fund managers tend to long term. The other risk is that you pull out of
have a certain style, which is to say there are an active fund without any idea where to put
certain types of stocks, sectors or segments of the proceeds, and you end up just sitting in cash.
the market which their investment strategy leads It’s easy to forget to reinvest that money, which
them towards. These could be dividend payers, potentially means missing out on returns as the
smaller companies, or growth stocks, for instance. market rises.
Such styles can fall out of favour and remain
unloved for long periods, which means some DISCLAIMER: AJ Bell owns Shares Magazine. The
forbearance is required if this is the root of fund author (Laith Khalaf) and editor (Tom Sieber) of
underperformance. this article own shares in AJ Bell.
Right now, many fund managers investing
globally or in the US have found it hard to match
the world index, which has been driven higher by
a small clutch of big technology companies. If an By Laith Khalaf
active manager didn’t hold these stocks, or simply AJ Bell Head of Investment Analysis
held less than the index, it would have left the rest

26 | SHARES | 17 July 2025

 Dan Coatsworth: Housebuilders

Housebuilders: what’s
holding back the sector and
what could drive a recovery

Shares are inexpensive and dividend yields are decent,

so why aren’t investors lapping them up?

F
alling mortgage rates, a government
eager to have more homes built, decent Taylor Wimpey
dividends and cheap equity valuations (p)
should, in theory, make housebuilders a
big hit with investors.
Instead, we’ve got a sector where share prices 200
are stuck in a rut. So, what will it take to get shares
motoring again?
Fundamentally, we need new government 150
incentives to fire up the property market, further
interest rate cuts to improve mortgage affordability,
100
and stronger consumer confidence. Two of those
three factors are in motion, while the third is
plausible. 2016 2018 2020 2022 2024

SENSITIVE SECTOR Source: LSEG

Shares in UK housebuilders are sensitive to interest
rate expectations and economic activity. When the FTSE 100. At the top end, Crest Nicholson
sentiment is in their favour, these stocks can deliver (CRST) has nearly matched the FTSE 100’s return
supersized returns to investors. The opposite whereas MJ Gleeson (GLE) has lost 26.4%.
applies when there are economic or interest rate
headwinds. MARKET CONCERNS
For example, shares in Taylor Wimpey (TW.) The market is worried about two key factors, while
went up 85% between October 2014 and August there are also company-specific factors which
2015, fluctuated in a narrow range until May 2016, explain the divergence in fortunes.
and then fell 43% over the following two months. Among investor concerns is the likelihood that
Such levels of volatility mean housebuilders won’t first quarter 2025 sales were stronger than normal
suit all investors. as individuals raced to beat changes to stamp duty.
So far this year, the sector has lost 2.3% on That implies that second quarter and potentially
average based on share price movements and third quarter sales might be lacklustre across
dividends versus a 10.3% positive total return from the sector.

17 July 2025 | SHARES | 27

 Dan Coatsworth: Housebuilders

Housebuilders versus FTSE 100

Year-to-date total
Company 15-year total return 10-year total return return

Crest Nicholson n/a −30.4% 9.2%

Vistry 202% −8.2% 6.4%

Bellway 518% 66.2% 5.7%

Persimmon 593% 42.4% 3.2%

Barratt Redrow 623% 21.2% −4.3%

Taylor Wimpey 719% 20.3% −4.5%

Berkeley 454% 38.5% −7.4%

MJ Gleeson 419% 20.4% −26.4%

Average 504% 21.3% −2.3%

FTSE 100 204% 99.8% 10.3%

Data to 8 July 2025

Source: AJ Bell, ShareScope

Disappointing news on the volume of of cost pressures. Extra employment related costs
completions in Barratt Redrow’s (BTRW) latest as a result of the chancellor’s Budget decisions in
update on 15 July, as well as significant charges October 2024 have trickled through the supply
relating to legacy building issues, haven’t helped chain, with companies supplying materials to
sentiment. housebuilders passing on those extra costs.
Between September 2022 and the end of March Housebuilders themselves have also had stomach
2025, buyers of homes in England and Northern higher employment costs directly.
Ireland worth less than £250,000 didn’t pay any MJ Gleeson shares fell in June when it slashed
stamp duty. First-time buyers paid no stamp duty profit forecasts, blaming a slower housing market,
on the first £425,000 when buying a home worth rising build costs and increased sales incentives.
less than £625,000. It also failed to sell a big block of land, thereby
From 1 April, the rates changed whereby buyers having less cash coming into the business than
pay 2% on values between £125,001 and £250,000 previously expected.
and the first-time buyer threshold has fallen to
£300,000. Above these values, the tiered rate
©MJ Gleeson

system is the same as before.

The prospect of paying thousands of pounds
extra in stamp duty caused a rush of home
buyers racing to complete purchases ahead of
the April deadline. Certain people didn’t get their
transaction over the line and there were reports of
potential buyers pulling out of deals.
The other worry point for investors is the return

28 | SHARES | 17 July 2025

 Dan Coatsworth: Housebuilders

and drive transaction volumes among existing

©Bellway
homeowners looking to move to a different
property.
There are signs of optimism in pockets of the
housebuilding industry among developers and
suppliers. For example, Bellway (BWY) struck a
confident tone in its June trading update, pointing
to ‘good’ levels of customer demand. Brickmaker
Ibstock (IBST) is planning to increase production
capacity, citing signs of recovery in the UK housing
market. Persimmon (PSN) is buying more land and
REASONS TO BE OPTIMISTIC gave an upbeat outlook in May.
There is a reasonable chance that certain The GfK Consumer Confidence index in June
headwinds could fade away and tailwinds to move recorded its second consecutive monthly gain,
to the forefront as the year progresses. driven by a more optimistic view of the economy.
The race to beat stamp duty is likely to have Consumer confidence is an important metric to
distorted near-term earnings for housebuilders, yet track as buying a house is a big financial decision
it should only be a temporary issue. and people won’t commit if they are worried about
The market expects interest rates to fall from their personal finances and job security.
4.25% to 3.5% by early 2026 and that would make The government has a target to build 1.5 million
mortgages much more affordable. It could be the new homes by 2029. Key to achieving this target
catalyst to get more people on the housing ladder is reforming the planning system, removing red

UK-listed housebuilders: key metrics

2025 dividend 2025 price to Historic

2025 dividend cover earnings price/net asset
yield estimate estimate estimate value

Crest Nicholson 1.9% 2.5 21.6 0.7

Springfield Properties 8.6% 1.0 11.3 0.7

MJ Gleeson 2.6% 2.8 13.8 0.8

Barratt Redrow 3.4% 1.4 20.9 0.9

Taylor Wimpey 8.2% 0.9 14.4 1.0

Bellway 2.3% 2.5 17.9 1.0

Vistry 1.9% 4.4 12.2 1.1

Berkeley Homes 4.9% 1.7 12.0 1.1

Persimmon 4.9% 1.5 13.9 1.3

AVERAGE 4.4% 1.5 15.2 1.0

Source: AJ Bell, Company accounts, Marketscreener, consensus analysts’ forecasts, LSEG Refinitiv data, as of 27 June 2025

17 July 2025 | SHARES | 29

 Dan Coatsworth: Housebuilders

tap that slows down approval of infrastructure a shake-up of the mortgage market to enable more
projects, and removing obstacles that have stalled people to get on the housing ladder, potentially
new home developments. helping to stoke demand.
While there remains uncertainty as to whether
the government can achieve the goal, its policies CHEAP VERSUS HISTORY
still provide a tailwind for housebuilders to increase Valuations are not expensive across parts of the
output. housebuilding sector relative to history. In boom
The property market has been a priority for times, it’s normal to see housebuilders trade on two
successive governments and this remains the case times net asset value. Today, they trade at or below
today. We’ve seen the Help to Buy scheme followed one-times.
by the launch of the Lifetime ISA and various Investing is all about taking a view on what might
changes to stamp duty along the way, all designed happen next, rather than looking in the rearview
to stimulate demand and facilitate access to the mirror. There is no guarantee that consumer
property market. confidence will continue to improve, inflation
It’s natural to ask when we will get the next comes down, and the Bank of England cuts interest
incentive, and there is chatter about a potential rates in the near-term.
new equity loan scheme. One proposal from the However, it does feel as if the sector is looking
Home Builders Federation bundles up a 5% deposit more interesting and as a key industry in both the
from the customer and a 15% equity loan from FTSE 100 and FTSE 250 indices, it could be worth
the government, including a 1% contribution from keeping a closer eye on what housebuilders say
the developer. from here, and what’s implied by key economic
On 15 July chancellor Rachel Reeves announced data points.

Money
& Markets
podcast featuring AJ Bell Editor-in-Chief
and Shares’ contributor
Dan Coatsworth

LATEST EPISODE
OBR report fuels tax rumours, Trump
tariffs update and will investors lose
patience with Elon Musk?

LISTEN
30 | SHARES | 17 July 2025 NOW
 Ask Rachel: Your retirement questions answered

How do the carry-forward rules

on pension contributions work?
Our resident expert explains that your
maximum contribution depends on your
annual earnings
I could do with clarification on the carry forward
rules. The guide is that I must have used up my full
allowance for the current tax year.
I am taking very low salary as a director of my
own business so my earnings are capped at £12,570.
Last year I put the maximum I can personally
place into my pension i.e. £12,570 including tax
relief. But that still left £47,430 to get up to the
£60,000 annual maximum. My company placed
further amounts in directly, but still short of the
maximum by about £17,000.
So, my question is - have I used my full allowance
for the tax year, or does it have to maxed out at
£60,000 before I can consider carry forward?
Andrew
which covers any personal contributions, employer
contributions and tax relief.
Rachel Vahey, Any contributions above the available allowance
AJ Bell Head of Public Policy, says: will suffer a tax charge if carry forward isn’t
available.
The standard annual allowance is £60,000, but
How much someone can pay into a pension can it could be lower if someone is a very high earner,
sometimes be complicated. As a reminder, there or has previously ‘flexibly accessed’ their benefits,
are two different allowances. usually by taking taxed withdrawals from their flexi-
The first is on the maximum contributions an access income drawdown plan.
individual can make to their pension and claim Doing so would trigger the money purchase
tax relief. This is capped at the higher of £3,600 or annual allowance (MPAA) which is £10,000.
100% of the pension saver’s relevant UK earnings, If someone doesn’t use all their annual
including the tax relief. allowance in a tax year, then it might be possible to
Very broadly, relevant earnings are earned carry it forward to another tax year to count against
income or self-employment income, including contributions paid in then.
bonuses, but not including investment income such However, this doesn’t apply if the MPAA has
as dividend income. been triggered. If that’s the case, unused MPAA will
just be ‘lost’ once the tax year ends.
KEY POINT TO REMEMBER You say last tax year you paid in £12,570, and
The key point to remember when it comes as you have £17,000 unused annual allowance
to personal contributions is the maximum left (out of your starting £60,000), I am going to
contribution which can be made is restricted to the assume your employer paid in about £30,430,
relevant UK earnings in that tax year, regardless of giving total contributions of £43,000.
how much annual allowance is available. You haven’t said what pension contributions
The second allowance is the annual allowance, you made in the two tax years before that, but

17 July 2025 | SHARES | 31

 Ask Rachel: Your retirement questions answered

I am going to assume you have unused annual up, moving onto 2023-24 and 2024-25
allowance from those years as well. As an alternative, you could increase your
personal contributions but you would have to
USE UP THE CURRENT YEAR’S ALLOWANCE FIRST have the relevant UK earnings to ‘justify’ a higher
To use unused annual allowance from previous personal contribution.
years, you must first use up your annual allowance For example, if you earned £29,570, you could
in the current year. If we assume both you and your pay a contribution which, when including tax
employer make the same contributions this tax relief, equalled £29,570. This, in addition to the
year, 2025-26, as you did last year, then you will still employer contribution of £30,430, would use up
have £17,000 left over. your total £60,000 annual allowance.
To use up this £17,000 your employer
contributions could be increased. It’s worth DO YOU HAVE A QUESTION
remembering that to be treated as an allowable ON RETIREMENT ISSUES?
deduction against profits, pension contributions
have to made wholly and exclusively for the Send an email to askrachel@ajbell.co.uk with the
purposes of the business. words ‘Retirement question’ in the subject line. We’ll
If the employer contributions were increased do our best to respond in a future edition of Shares.
by any more than £17,000, then not only would Please note, we only provide information
it use up the annual allowance for this year, but and we do not provide financial advice. If you’re
unsure please consult a suitably qualified financial
any excess could be set against unused annual adviser. We cannot comment on individual
allowance from previous tax years starting with investment portfolios.
three tax years ago (2022-23), and once that is used

IN NEXT
WEEK'S
SHARES BP VS
SHELL
SPECIAL
Out on
24 July
FEATURE

32 | SHARES | 17 July 2025

 Index

Main Market AIM

Airtel Africa 18 James Halstead 22
Babcock 11 Kooth 15
BAE Systems 11 Mercia Asset
15
Management
Barratt Redrow 28
Personal Group 14
Bellway 29
Capita 15 Overseas shares
Investment Trusts Templeton Emerging
Crest Nicholson 27 20
Markets Investment Trust
Aberdeen Asian Income
Funding Circle 15 19
Fund
Funds
Galliford Try 9 Artemis UK Future
10 Fidelity Emerging
Leaders 17
Markets
Ashoka Whiteoak
18 Fundsmith Equity 25
Emerging Markets
BlackRock Latin Schroder Emerging
Alibaba 18 18 18
American Markets Value Fund
Hitachi Energy India 18 JPMorgan Global UK Buffettology Fund 22
Hong Kong Exchanges Emerging Markets 20
18 Income Trust ETFs
and Clearing
Games Workshop 22
JPMorgan Chase 7 Rockwood Strategic 15 VanEck Defence 11
Genus 12
Lockheed Martin 11 WHO WE ARE DISCLAIMER
Ibstock 29
Naspers 18 Shares publishes reporter can write
Mitie 14 EDITOR:
Tom Sieber information and ideas about the interest, it
Northrop Grumman 11 @SharesMagTom which are of interest should be disclosed to
to investors. It does readers at the end of
DEPUTY EDITOR: not provide advice in the story. Holdings by
RTX 11 Ian Conway relation to investments third parties including
@SharesMagIan or any other financial families, trusts, self-
SK Hynix 20 NEWS EDITOR:
matters. Comments select pension funds,
published in Shares self select ISAs and PEPs
Steven Frazer must not be relied upon and nominee accounts
@SharesMagSteve by readers when they are included in such
FUNDS AND INVESTMENT make their investment interests.
decisions. Investors who
TRUSTS EDITOR:
James Crux require advice should 2. Reporters will
consult a properly inform the editor on
@SharesMagJames
MJ Gleeson 27 qualified independent any occasion that
EDUCATION EDITOR: adviser. Shares, its they transact shares,
Martin Gamble staff and AJ Bell Media derivatives or spread
MONY Group 10 @Chilligg Limited do not, under betting positions. This
any circumstances, will overcome situations
Persimmon 29 INVESTMENT WRITER: accept liability for when the interests
Sabuhi Gard losses suffered by they are considering
@sharesmagsabuhi readers as a result might conflict with
Sage 14 of their investment reports by other writers
CONTRIBUTORS: decisions. in the magazine. This
Dan Coatsworth notification should be
Softcat 22 Danni Hewson
Strategy 8 Laith Khalaf
Members of staff of confirmed by e-mail.
Shares may hold shares
Russ Mould in companies mentioned 3. Reporters are required
Tencent 18 Laura Suter in the magazine. This to hold a full personal
Rachel Vahey could create a conflict interest register. The
Hannah Williford
TSMC 18 of interests. Where such whereabouts of this
a conflict exists it will register should be
be disclosed. Shares revealed to the editor.
ADVERTISING adheres to a strict code
Senior Sales Executive of conduct for reporters, 4. A reporter should not
Nick Frankland as set out below. have made a transaction
020 7378 4592 of shares, derivatives or
nick.frankland@sharesmagazine.co.uk 1. In keeping with spread betting positions
the existing practice, for 30 days before the
Shares magazine is published weekly reporters who intend publication of an article
every Thursday (50 times per year) by to write about any that mentions such
AJ Bell Media Limited, 49 Southwark securities, derivatives interest. Reporters who
Bridge Road, London, SE1 9HH. or positions with spread have an interest in a
Company Registration No: 3733852. betting organisations company they have
that they have an written about should
Taylor Wimpey 27 All Shares material is copyright. interest in should first not transact the shares
Repro­duction in whole or part clear their writing within 30 days after
Wells Fargo 7 is not permitted without written with the editor. If the the on-sale date of the
WPP 9 permission from the editor. editor agrees that the magazine.

17 July 2025 | SHARES | 33