JPM trust slumps in tough market for small caps
JPMorgan Smaller Companies Investment Trust underperformed (-7.5%) versus its benchmark (-6.2%) in the year to 31 July, despite two of its largest positions being taken over.
JPMorgan Smaller Companies Investment Trust underperformed (-7.5%) versus its benchmark (-6.2%) in the year to 31 July, despite two of its largest positions being taken over.
Witan Investment Trust chief Andrew Bell has been elected as the next chairman of the AIC following the completion of two years in office from the current incumbent Sarah Bates.
Being a leveraged company is seen as a huge negative right now but investment trusts use gearing as a point of competitive advantage and those that do should not be dismissed out of hand.
Witan Investment Trusts NAV climbed 5.1% in the first half of the year, with seven of its 11 external managers beating their benchmarks.
Renaissance Asset Management has proposed a restructure of its Russia Infrastructure Equities Fund, from an investment trust into an Oeic to improve liquidity and reduce its discount.
More investment trusts are likely to increase their dividends going forward, though investors should be wary of managers changing their investment approach to boost revenues, according to Winterflood Securities.
During a tough second quarter of the year, closed-ended investments outperformed their open-ended peers.
Liquidity concerns cited by many IFAs to be a major turn off when it comes to investment trusts do not appear to be a problem for private client wealth managers who hold large positions in closed-end vehicles, according to JPMorgan Asset Management.
One of the main facets of RDR is – or rather was – the uptake in the sale of products that don’t focus on paying a commission but if investment trusts and ETFs, for example, do see a surge in sales it will be because of better adviser education not a single product feature.
While the product mix has expanded, and a multitude of asset classes have risen and fallen in popularity over the past five years, investors priority for income has remained consistent.
Lack of presence on platforms could act as a major hurdle for investment trusts even once the playing field has been levelled post-RDR, according to Winterflood.
At an EGM held earlier this month, shareholders voted unanimously in favour of not winding up Ashmore Global Opportunities Limited.