WWW.BARRATTANDCOOKE.CO.UK

TELEPHONE: 01603 624236

January 2019

1/1/17 5/4/17 1/7/17 5/10/17 1/1/18 5/4/18 1/7/18 5/10/18 1/1/19 FTSE 100 7143 7332 7313 7508 7688 7200 7637 7319 6728 FTSE All Share 3873 3997 4002 4119 4222 3961 4202 4078 3675 Dow Jones (US) 19763 20648 21350 22775 24719 24505 24271 26447 23327 S&P 500 (US) 2239 2353 2423 2552 2674 2663 2718 2886 2507 Nikkei 225 (Japan)_19114 18861 20056 20629 22765 21645 22305 23784 20015 WMA Balanced 1492 1538 1533 1571 1599 1538 1597 1578 1484

Losing Patience On 25th December 2018 we were greeted by a virtual white Christmas as a heavy frost did its best to create the illusion of snow. It was only then that I realised the worth of all of the political commentary in the newspapers. Having placed kindling on top of the ‘guff’ written by so many, a match was struck and with the fire lit we could celebrate the fact that ‘today’ we would not contemplate; Brexit nor stockmarket volatility or Messrs Barnier, Junker, Corbyn or indeed Mrs May. Whilst the annual ‘Santa rally’ never arrived, Saint Nicholas did manage to squeeze down chimneys across the land and I am sure I’m not the only one who allowed myself to wonder, for a split second, if his goodwill might rub off on a few of our leaders… Firstly, let’s remember what has happened since October away from UK politics:

- The brutal killing of Jamal Khashoggi at the Saudi consulate in Istanbul.

- The tragic death in a helicopter accident of Vichai Srivaddhanaprabha (the Leicester City Football Club owner). Thank you for the memories, you have given all of us supporters of ‘less fashionable’ football teams hope, though it won’t happen again!

- The Democrats won control of the US House of Representatives whilst the Republicans retained control of the Senate. The US political scene makes Westminster seem so simple!

- Angela Merkel announced that she would step down as Chancellor of Germany in 2021.

- We all attended amazing ceremonies across the country marking the 100th Anniversary of

the 1918 Armistice.

- Lewis Hamilton won a 5th Formula One Championship.

- George H W Bush died aged 94 (I think we will leave US politics there).

Growth Equities

Higher Yield Equities

Mid-Cap Equities

Overseas Equities

Collective Investments

Bunzl Compass Group Croda DCC Intertek Prudential Reckitt Benckiser Relx

Admiral Carnival BP HSBC National Grid RDS ‘B’ Rio Tinto Severn Trent

Avast Coats Group Dechra Diploma FDM Group Hill & Smith Pennon Weir Group

ABB Amazon Becton Dickinson Estee Lauder Heineken Novartis Novo Nordisk SGS Umicore

Baillie Gifford US Growth IT Fidelity Special Values IT Finsbury Growth & Income IT Impax Environmental Mkts IT Monks IT Pacific Assets IT Schroder Oriental Income IT Smithson IT Trojan Global Income Fund

BARRATT & COOKE IS THE TRADING NAME OF BARRATT & COOKE LIMITED REGISTERED IN ENGLAND No. 5378036

BARRATT & COOKE LIMITED IS AUTHORISED AND REGULATED BY THE FINANCIAL AUTHORITYwho are based at 12 ENDEAVOUR SQUARE, LONDON E20 1JN

CONDUCTREGISTERED ADDRESS: 30 FINSBURY SQUARE, LONDON EC2A 1AG

- We heard of the £1.4bn bailout of Crossrail, which will not now be opened next autumn (predictable).

- The French had another strike (predictable).

- We watched Tyson Fury’s outstanding fight with Deontay Wilder where despite 2 knock downs he out boxed the American and was robbed of victory, drawing the contest on points. Scoring in boxing has always been spurious, at best, as I learnt in November last year!

- Rogue drones brought Gatwick Airport to a standstill and the cynic in me wonders if they might have been flown by a major airline company in order to illustrate the carnage which we may face should we leave the EU on unfavourable terms.

Politics Whilst absolutely ‘naff all’ (I think this is as strong as can go to print) has been decided with regard to Brexit, plenty has taken place on the political front. Indeed there has been much posturing, bickering and back stabbing, coupled with the occasional sensible debate, and I therefore set out below recent events which have taken place within the walls of Westminster and across the channel with our European cousins (or cousins for at least another 3 months). 10th October - The Prime Minister started to hear threats from the DUP that they would vote down the budget if they were unhappy with the Government’s Brexit plans where, suffice to say, a hard Irish border remains their main concern. 15th November - Dominic Raab resigned as Brexit secretary saying “he cannot, in good conscience, support the terms of the proposed deal with the EU”. 20th November - Jacob Rees-Mogg called for the ousting of Theresa May. 30th November - Theresa May rejected alternatives to her Brexit plan, calling for Conservative MPs to think of the consequences for their constituencies should they chose to vote it down. 4th December - The Conservatives suffered three defeats in the House of Commons. In addition they were found in contempt of Parliament and were forced to give the house a direct say in what happens if the Prime Minister’s deal is rejected. 10th December - Theresa May called off the vote on her Brexit deal. Why? Quite simply because it was destined to fail as not enough MPs would have voted in favour of it. The major stumbling block being the basis of the backstop (see below). 12th December - Theresa May ‘won’ the vote of confidence in her leadership from her fellow Conservative MPs (see below). 22nd December - Parliament went into recess. 27th December - Jeremy Corbyn called for MPs to return early (2nd January 2019) to give them more time to sort out the Brexit debacle. For once I agreed with the leader of the opposition. If our MPs were the Board/employees of a company in severe regulatory or financial difficulty (much of which was their own doing with an inability to make decisions), we as shareholders would demand that rather than having almost three weeks off for Christmas they got back to work and sorted out the mess. I’m penning this newsletter during the lull between Christmas and New Year, plenty of people work on Christmas Day, why on earth do MPs need a break similar to that of a children’s school holiday? Of course, I am aware that many are doing duties within their constituencies over Christmas but this is where “strong and stable” (or stubborn) leadership is needed. The bigger picture must be tended to and, at the very least, please have the decency to demonstrate to your electorate that you care about this deal. We are all getting fed up.

Vote of ‘confidence’ Mrs May faced a vote of no confidence on 12th December, where at least 48 MPs had written letters confirming their lack of faith in her leadership. She was ‘victorious’ in the vote with 200 of her Conservative MPs voting in her favour, yet with 117 calling for her head it was hardly a ‘vote of confidence’. With Parliament comprising of 650 seats* having just 200 allies (or 31%) of the house is a long way short of the support she needs to carry through any critical votes, let alone the withdrawal agreement. * the Tory party currently holds 317 seats hence the need to be supported in a minority government using a ‘confidence and supply agreement’ with the DUP holding 10 seats. The instigators of the coup claimed victory themselves, stating that 117 MPs voting against May was a devastating blow for the Prime Minister (not dissimilar to Jeremy Corbyn claiming he’d won the last General Election). Having heard the House of Commons described by many as the ‘school playground’ I believe this is doing a huge disservice to our children. From watching the recent debacle unfold on BBC Parliament, the lack of respect, the shouting, the plotting and scheming, the inability to listen to another view, the pigheadedness, the bullying and the deceit quite frankly makes a bit of bickering and some rough and tumble in the school courtyard look like the land of milk and honey. The fact that MPs refer to each other as ‘right honourable’ actually means that they think they are neither ‘right’ nor ‘honourable’! It is of course a fact that within Parliament it is much easier to be in opposition to the withdrawal agreement whether across the chamber (i.e. the ‘right honourable’ Jeremy Corbyn) or on the same side (i.e. the ‘right honourable’ Boris Johnson). Indeed it is easier to criticise a manifesto or deal without the need to draw up an alternative plan than defend it. The European Parliament has said they will not agree to another deal and therefore I am unsure as to what any change in leadership would achieve. That said, I am not jumping to Theresa May’s defense and would agree that her deal has significant shortcomings, of which the backstop is of course the most significant. However, I do not blame her for deciding not to stand for Prime Minister at the next election. The Backstop For those of you who are students of the game of cricket, you will be aware that backstop is a fielding position located directly behind the wicket keeper. Whilst rarely used these days, this fielder’s task is to protect the boundary lest the wicket keeper ‘screws up’. In the context of Theresa May’s current proposal, the backstop is the safety net which revolves around the Irish Border. The Good Friday Agreement removed the checkpoints, customs posts and surveillance cameras at the border in Ireland (a so called hard border) and allows for the free cross-border flow of both goods and people. However, the result of the referendum and the UK’s red lines, which include leaving the customs union and single market, mean that a form of border needs to be reintroduced. So far a technical solution to maintain a frictionless border has yet to be found which means that, with both the UK and EU being committed to ensuring physical checks at the Irish border will not have to be reintroduced, a legally binding backstop is required. Both the UK and the EU agreed to this in December 2017. After considerable disagreement regarding what form this should take it was decided that if a solution cannot be found by the end of the transition period in December 2020 the withdrawal agreement’s ‘backstop’ would see Northern Ireland staying aligned to some rules of the EU single market. This would prevent the need for checks on the Irish border, but would require some

products being brought to Northern Ireland from the rest of the UK to be subject to new checks and controls. The backstop would also involve a temporary single customs territory, effectively keeping the whole of the UK in the EU customs union. Many Brexiteers feel that this would be a betrayal of the referendum, keeping the UK too close to the EU. Being in the customs union also means that the UK will not be able to sign its own trade deals which seems very restrictive. The backstop would only cease if the EU and the United Kingdom decide jointly that it is no longer necessary, which means that the UK would not have a unilateral right to bring the backstop to an end. If either party were to notify the other that it wants the backstop to come to an end, a joint ministerial committee will meet to consider the details. Given the current debacle it seems unlikely that a quick resolution would be found. Both the Government and the EU have been keen to emphasise that the backstop is a position of ‘last resort’ and that it is a temporary fix but so far Theresa May has not been able to obtain any legal assurances from the EU that this is the case. The most significant problem being that, in effect, the UK will be empowering the EU to determine when we can leave their ‘club’ and there are fears that we could be held to ransom indefinitely. Equity Prices Is there value in the UK stockmarket? On the basic numbers – yes. As I have mentioned in previous newsletters, companies are doing well (at the moment), corporate profits are generally rising, balance sheets look in reasonable health and importantly, in many cases, dividends are well covered by cash profits. Of course there is the odd anomaly but having underweight exposure to domestic businesses such as high street retailers, banks and construction/housebuilders has driven some reasonable relative performance (against the FTSE 100) even if in absolute terms portfolios are down a little from recent highs. FTSE 100

2019 forecasts

5 Year average

10 year average

15 year average

P/E 11.3x 15x 13.3x 14x Dividend Yield* 4.9% 4.0% 4.1% 3.6% EPS Growth 4.7% 4.4% 2.9% 4.2% Dividend growth 4% 7% 2.5% 6.8% Dividend cover 1.8x 1.6x 1.8x 1.9x Net Debt/EBITDA 1.4x 1.6x 1.5x 1.4x

*being a ‘weighted index’ the average yield of the FTSE 100 reflects the above average distribution levels of the largest companies in the index It is fair to say that the Brexit fiasco has taken its toll on sentiment towards the UK stockmarket, with asset managers around the world reducing UK equity exposure. Though this is perhaps unsurprising given the ongoing political environment, the underlying fundamentals of many FTSE 100 constituents remain robust, meaning the sell-off experienced this year has been primarily driven by valuations unwinding rather than profits eroding. The chart above illustrates how low sentiment to the FTSE 100 is. The P/E ratio is currently below the 5,10 and 15 year averages despite earnings per share (EPS) in 2019 forecast to grow ahead of the historic average (though we appreciate these are of course estimated and by no means guaranteed). Interestingly, the forecast FTSE 100 2019 EPS has risen steadily throughout 2018 and is now around 7% higher than it was at the beginning of the year, in part helped by the weakness of sterling.

Meanwhile the dividend yield of 4.9% is not far off an all-time high and well above returns available on cash and gilts. A high dividend yield would normally be associated with a lack of dividend cover and although some income is under pressure, average cover of 1.8x suggests dividends are underpinned by profits, at least in 2019. This has been helped over the past couple of years by the recovery of cyclical commodity companies which make up a significant proportion of the FTSE 100 and offer some of the highest yields. The most commonly used metric (and one used by credit rating agencies) to measure the financial strength of most companies is net debt/EBITDA. Companies are generally funded by both debt and equity in order to achieve the lowest cost of capital and it is therefore no surprise that many have taken advantage of the recent low interest rates. However, earnings growth has more than offset the amount of debt raised and as a result, leverage of FTSE 100 companies has steadily declined. Indeed, the weighted average net debt/EBITDA currently stands at a comfortable 1.4x, the bottom end of the long-term historic range. The FTSE 100 therefore looks good value on historic formulae, but of course there are additional factors beyond the Brexit uncertainty which must be considered:

US – the unpredictability of Trump, especially his trade wars with China and the budget to build his Mexican wall. Meanwhile, the Federal Reserve continues to increase rates against Trump’s wishes whilst the FAANG stocks, which we had considered too high, have de-ratedsignificantly (providing an opportunity to purchase Amazon which is our preferred technology stock).

Europe – the German economy is slowing, France is cursed with strikes in addition to their economy entering a recession and goodness only knows what is happening in Italy.

Oil – prices have fallen from a recent high of $86/barrel back to $54/barrel.

Technical issues – with increased market volatility primarily caused by the unpredictability of hedge funds shorting stocks, algorithmic trading and low volumes over the Christmas period.

Corporate actions Takeovers Randgold Resources – 6.128 new Barrick Gold Corp shares for each share held

SKY – 1728p cash offer from Comcast

Shire – $30.33 cash and 1.678 Japanese listed Takeda ADR shares for each share held Rights Issues Elementis – 1 new for every 4 shares held at 152p

Grainger – 7 new for every 15 shares held at 178p

Kier Group – 33 new for every 50 shares held at 409p Other BHP Billiton name change to BHP Group Standard Life Aberdeen consolidation – 7 new for every 8 shares held plus 33.99p return of capital

Conclusion As the frost on Christmas Day thawed, things turned back to normal; an ‘autumnal day’. Winter no longer comes in December but just before Easter and though the cold weather might be delayed it always arrives eventually, much like the vote on the withdrawal agreement as 29th March 2019 (Brexit) is rapidly approaching. For once I agreed with Jeremy Corbyn, calling for Parliament to return on 2nd January. Why on earth Theresa May has not called the army of MPs back from recess I have no idea. Whilst I offered her my support at the end of the last newsletter, I really am starting to lose patience. Yes she is a strong, admirable and principled woman but one whom, scared that she would lose ‘the vote’, has put us all on hold. Businesses and indeed families now have very little time to adapt and although multinational companies can invest time, money and manpower, smaller UK exporters really don’t have the resources to change at such short notice. Ultimately 52% of our country voted for this thing. As someone who voted remain with great conviction I now just implore you, Mrs May (and indeed the other 649 egos in the chamber), please get us ‘OUT’ now but whatever happens it must be with some sort of deal. CWLB, having read this newsletter and provided me with some valued council, has prompted me to end with one of his favourite sayings:

"Things are never as good as you hope, but then again they are never as bad"

This is certainly not the time to panic. WJB 1st January 2019

REGULATORY DISCLAIMER: This newsletter is provided solely to enable clients to make their own investment decisions. The information within this newsletter 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 newsletter 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: Proquote and FTSE International Limited (‘FTSE’) © FTSE 2018. ‘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.

REGULATORY DISCLAIMER: This newsletter is provided solely to enable clients to make their own investment decisions. The information within this newsletter 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 newsletter 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 12 Endeavour Square, London E20 1JN.

SOURCE: Proquote and FTSE International Limited (‘FTSE’) © FTSE 2018. ‘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.

January 2019 Equity Suggestions

Price 52 Week FTSE 100 COMPANIES 1/1/19 Yield High Low BANKS HSBC Holdings PLC Ordinary Shares 647p 6.2% 799p 596p BEVERAGES Diageo PLC Ordinary Shares 2795p 2.4% 2885p 2345p CHEMICALS Croda International PLC Ordinary Shares 4685p 1.8% 5330p 4217p FOOD PRODUCERS Unilever PLC Ordinary Shares 4109p 3.2% 4504p 3679p Associated British Foods PLC Ordinary Shrs 2043p 2.2% 2905p 2011p FORESTY & PAPER DS Smith PLC Ordinary Shares 299p 5.0% 542p 286p Smurfit Kappa Group PLC Ordinary Shares 2082p 3.7% 3308p 1915p HEALTHCARE PRODUCTS Smith & Nephew PLC Ordinary Shares 1464p 1.9% 1548p 1173p HOUSEHOLD PRODUCTS Reckitt Benckiser PLC Ordinary Shares 6013p 2.8% 7174p 4973p INDUSTRIALS Halma PLC Ordinary Shares 1364p 1.1% 1508p 1136p LIFE INSURANCE Prudential PLC Ordinary Shares 1402p 3.5% 1993p 1325p MEDIA RELX PLC Ordinary Shares 1617p 2.5% 1751p 1399p MINING BHP Billiton PLC Ordinary Shares 1652p 5.4% 1804p 1349p Rio Tinto PLC Ordinary Shares 3730p 6.1% 4541p 3460p OIL & GAS BP PLC Ordinary Shares 496p 6.3% 604p 453p Royal Dutch Shell B PLC Ordinary Shares 2340p 6.3% 2845p 2194p NONLIFE INSURANCE Admiral Group PLC Ordinary Shares 2047p 5.7% 2138p 1795p SUPPORT SERVICES Bunzl PLC Ordinary Shares 2369p 2.0% 2544p 1918p DCC PLC Ordinary Shares 5985p 2.1% 7808p 5555p Experian PLC Ordinary Shares 1905p 1.9% 1994p 1495p Intertek PLC Ordinary Shares 4800p 1.7% 6084p 4323p Rentokil Initial PLC Ordinary Shares 337p 1.2% 356p 257p TRAVEL & LEISURE Carnival PLC Ordinary Shares 3763p 4.1% 5090p 3611p Compass Group PLC Ordinary Shares 1650p 2.3% 1722p 1396p UTILITIES National Grid PLC Ordinary Shares 764p 6.0% 930p 733p Severn Trent PLC Ordinary Shares 1849p 4.8% 2179p 1664p

FTSE 250/Small Cap/AIM COMPANIES GENERAL RETAILERS Boohoo Group PLC Ordinary Shares 162p - 248p 140p INDUSTRIALS Coats Group PLC Ordinary Shares 82p 1.4% 90p 69p Diploma PLC Ordinary Shares 1210p 2.1% 1486p 1039p Hill & Smith Holdings PLC Ordinary Shares 1200p 2.6% 1538p 878p Rotork PLC Ordinary Shares 248p 2.2% 363p 233p Weir Group PLC Ordinary Shares 1298p 3.5% 2333p 1222p INFRASTURCTURE Renewables Infrastructure Grp Ord Shrs 113p 5.7% 115p 101p PHARMACEUTICALS Dechra Pharmaceuticals PLC Ordinary Shrs 2070p 1.2% 3180p 1956p SUPPORT SERVICES FDM Group (Holdings) PLC Ordinary Shrs 743p 3.8% 1139p 721p TECHNOLOGY Avast PLC Ordinary Shares 284p - 301p 205p RWS Holdings PLC Ordinary Shares 479p 1.6% 519p 335p UTILITIES Pennon Group PLC Ordinary Shares 693p 5.5% 815p 577p

OVERSEAS COMPANIES# BEVERAGES Heineken NV Registered Shares 6929p 2.0% 8349p 6628p CHEMICALS Umicore SA Common Stock 3129p 1.7% 4738p 3055p HEALTHCARE PRODUCTS Becton, Dickinson & Co 17692p 1.4% 20377p 14882p Johnson & Johnson Common Stock 10133p 3.0% 11705pp 8840p Waters Corporation Common Stock 14812p - 15924p 13434p INDUSTRIALS ABB Ltd. Common Stock 1497p 4.2% 2044p 1456p Schindler Holding CHF Registered Shares 15593p 2.1% 19210p 14680p PERSONAL GOODS Colgate-Palmolive Common Stock 4673p 2.8% 5592p 4520p Estée Lauder Companies Common Stock 10515p 1.3% 11981p 9342p MEDIA Wolters-Kluwer NV Shares 4637p 1.9% 4993p 3491p PHARMACEUTICALS Novartis CHF Registered Shares 6731p 3.3% 7238p 5495p Novo Nordisk DKK Series B 3672p 2.6% 4153p 3142p SUPPORT SERVICES SGS SA CHF Registered Shares 176998p 3.4% 206010p 170685p TECHNOLOGY Amadeus IT Group SA Common Stock 5461p 1.7% 7346p 5081p Amazon.com Inc Common Stock 117931p 158667p 89295p Automatic Data Processing Common Stock 10295p 2.4% 11692p 7717p TOBACCO Philip Morris PLC Ordinary Shares 5242p 6.8% 7890p 5188p

NON EQUITY COMMODITIES Gold Bullion Securities 9454p - 9694p 8476p

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

Investment Trust & Unit Trust/OEIC Suggestions Price 52 Week Discount 1/1/19 Yield High Low to NAV* UK City of London I/T 385p 4.8% 445p 373p (3.2%) Diverse Income I/T 93p 1.8% 111p 89p (2.9%) Fidelity Special Values I/T 228p 2.2% 281p 220 (1.4%) Finsbury Growth & Income I/T 753p 2.0% 858p 715 (0.8%) Henderson Smaller Companies I/T 768p 2.7% 986p 724p 6.5% Troy Income & Growth I/T 73p 3.7% 81p 72p (1.7%) Global Baillie Gifford US Growth I/T 108p - 136p 100p (1.4%) Bankers I/T 783p 2.5% 926p 766p 2.1% Caledonia I/T 2825p 2.0% 2945p 2515p 19.4% Fundsmith Equity Fund 342p 0.6% 381p 315p - JP Morgan American I/T 399p 1.4% 473p 369p 4.9% JP Morgan Japanese I/T 374p 1.3% 473p 366p 7.6% Jupiter European Opportunities I/T 679p 0.9% 900p 662p 3.9% Monks I/T 726p 0.2% 874p 710p (3.2%) Personal Assets I/T 39150p 1.4% 41150p 38700p (1.4%) Smithson I/T 1000p - 1084p 985p (5.7%) Trojan Global Income Fund 102p 0.7% 110p 94p - Emerging Markets JP Morgan Emerging Markets I/T 855p 1.5% 935p 758p 9.2% Pacific Assets I/T 283p 0.9% 292p 234p (1.2%) Schroder Oriental Income I/T 232p 4.2% 267p 225p (3.3%) Frontier Markets BlackRock Frontiers I/T 137p 4.3% 170p 132p (6.3%) Healthcare Worldwide Healthcare I/T 2390p 0.7% 2920p 2320p (1.7%) Private Equity Pantheon International I/T 1970p - 2170p 1775p 19.7% Technology Polar Capital Technology I/T 1104p - 1396p 1014p 4.4% Environmental Impax Environmental Markets I/T 253p 1.0% 290p 240p (2.1%)

* () = premium

Fixed Interest Suggestions

Price 1/1/19

Gross Interest

Yield

Gross Redemption

Yield

Payment Dates

Redemption Date

CONVENTIONAL GILT Treasury 0.5% 2022 99.0 0.5% 0.8% Jan/Jul 22 Jul 2022 INDEX-LINKED GILT Treasury 0.125% Index Linked 2024 132.1# 0.1% 0.7%* Mar/Sep 22 Mar 2024 BOND FUNDS Fidelity Moneybuilder Income Fund 118.4 3.5% - Church House IG Fixed Interest Fund 112.6 2.0% - iShares £ Corp Bond 0-5 yr ETF 104.0 2.1% - * Equivalent Gross Redemption Yield for Index Linked Gilt assuming that future RPI inflation averages 3.0% to redemption. # Price adjusted for inflation (where the published price may be significantly different as it does not include accrued inflation).

All yields are estimated and not guaranteed.

REGULATORY DISCLAIMER: This newsletter is provided solely to enable clients to make their own investment decisions. The information within this newsletter 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 newsletter 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 12 Endeavour Square, Stratford, E20 1JN.

SOURCE: Proquote and FTSE International Limited (‘FTSE’) © FTSE 2018. ‘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.

REGULATORY DISCLAIMER: This Equity Suggestions sheet is provided solely to enable clients to make their own investment decisions. The informationwithin this list does not constitute advice or a personal recommendation, or take into account the particular investment objectives, financial situations, orneeds 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 12 Endeavour Square, London E20 1JN.

SOURCE: Proquote and FTSE International Limited (‘FTSE’) © FTSE 2018. ‘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.