Buffettology Smaller Companies is one of several new investment trusts heading our way. It’ll be managed by the team at Sanford DeLand that is also behind the highly successful Buffettology open-ended fund.
It probably wasn’t a great surprise to see that Smithson Investment Trust is looking to raise more cash. But it was a little surprising that it was left so late and that it’s increasing by so much.
You might be forgiven for thinking we’re in the middle of a mania for investment trusts, with several high-profile new issues accepting applications at the moment. Surging public interest in the stock market is a classic sign of a bubble, so let’s see how 2018 compares to other years.
Applications are now open for Smithson Investment Trust, the keenly anticipated new offering from Terry Smith’s Fundsmith. No doubt many people will be happy to take the plunge purely on the basis of the great run the Fundsmith Equity Fund has had. But here are a few things that I think are worth knowing before you make any decision.
You wait for one investment trust launch from a legendary fund manager then, before you know it, along comes another. Following last week’s announcement of Smithson Investment Trust, we now have more details on Mobius Investment Trust, the latest offering from emerging markets guru Mark Mobius.
Comments from Terry Smith in recent weeks led some people to believe that Fundsmith was about to launch a small-cap investment fund. This morning it was confirmed: Smithson will soon be with us.
Fundsmith To Launch Smithson: A “Small-Cap” Investment Trust
So, here’s an investment trust that’s a little bit different. Hipgnosis Songs Fund (SONG) joined the market on 11 July 2018, raising £202m at 100p per share.
It’s one of many investment trusts tapping into the demand for income and returns that aren’t directly correlated to the stock market. Hipgnosis Songs is shooting for a 5% dividend yield (based on its float price) as part of a total target return of 10% a year, courtesy of money generated from music royalties.
Today sees the launch of Tritax EuroBox (EBOX), which follows in the footsteps of the very popular Tritax Big Box (BBOX). Therefore, it seemed like an opportune time to review what new investment trusts have joined the stock market recently, to see what sectors are sizzling hot and what are definitely not.
There have been 29 investment trusts launched since the start of 2017 as far as I can tell. They are currently worth a collective £5bn, which represents about 3% of the total market value of all investment trusts of around £160bn. While that suggests that we are not seeing a flood of new investment trusts, there are three or four sectors that seem to be pretty popular right now.
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