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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.

 
Investment Trust Insider: issue 22 out now!

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’.

Top gearing

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.

Directors swoop

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.

You can access issue 22 of Investment Trust Insider here.
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Investment Trust Insider 36 is out now!

by Gavin Lumsden on Feb 16, 2017 at 11:01

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