I’ve always had a soft spot for investing in smaller companies, aka small caps. It’s what many private investors cut their teeth on. What’s more, there’s decent evidence that such companies outperform the wider market. This phenomenon has even got a catchy moniker: the small-cap effect.
Venture capital trusts (VCTs) were created in the mid-1990s to provide much-needed capital for small, fast-growing companies. A pretty dazzling array of tax reliefs are offered to lure investors into this high-risk area. But the rules are shifting and the VCT landscape is changing.
Next year will be the 20th anniversary of Mark Barnett taking charge of Perpetual Income & Growth and his 5th anniversary at Edinburgh Investment Trust. The celebrations might be a little muted, however. Their recent performance has been… less than spectacular.
There’s nothing like a complete and utter political shambles (I’m guessing you know the one I mean) to remind us why we need to be globally diversified when it comes to investing. It’s prompted me to dig into my portfolio a little, to see how diversified I truly am.
Usually, an investment trust offers either income or growth. But a new kid on the recycling block, Gresham House Energy Storage Fund, appears to offer both: a 7% yield and the prospect of 8% capital growth. Is it too good to be true?
The way I invest has changed a fair bit over the years. I’ve tried a few different variations – some have worked out well while others have taught me valuable lessons. If I was to sum up the foundation of my current strategy I would go for ‘simplicity’ and ‘inactivity’.
Although investment trusts have seen a big leap in popularity over the last decade, they still seem to be a niche endeavour. Books about investment trusts tend to be very rare, so I was keen to read The Investment Trust Handbook. It didn’t disappoint.
Independent Investment Trust is one of those funds that I have been aware of for quite a while but never got round to digging into properly. Its shares are up 500% over the last 10 years, so perhaps I need to re-examine my priorities!
We’re currently in ‘correction’ territory with the UK market down 10% from its most recent peak in May 2018. Stock market falls like this can hit investment trusts harder than most, as a lot of funds have some level of gearing and discounts to asset values tend to widen.
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