View the article online at http://citywire.co.uk/money/article/a854719
Investment Trust Insider: issue 22 out now!
We look at the styles of successful UK Smaller Companies funds and reveal which trusts have taken advantage of low-rate loans.
Hello, welcome to this month’s issue of Investment Trust Insider. We’ve three more must-read articles about closed-ended funds for you.
Stylish smaller company funds
We return to the subject of UK Smaller Companies to take a closer look at the styles used by some of the successful investment trusts inside and outside this sector. Investment trusts investing in British ‘small cap’ stocks have done very well in recent years. Using data from Morningstar, this article looks at three different investment approaches that have driven this performance: ‘Small Growth’, ‘Small Value’ and ‘Small Blend’.
The ability to gear, or borrow, sets investment trusts apart from other types of funds. By increasing the amount of money that can be invested, investment trusts can generate better long-term returns for shareholders, although the presence of debt means trusts can fall further when markets decline.
In the 1980s some investment trusts locked themselves into expensive long-term loans. Recently they and other trusts have re-financed, taking out loans before interest rates start to rise and borrowing becomes more expensive. We reveal which trusts have sensibly cut their borrowing bills.
Lastly, our new ‘Inside the Market’ feature looks at four investment trust directors who bought shares in their funds after the stock market tanked on ‘Black Monday’ in August.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
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