X

Latest Research Paper from Hardman & Co: Right back where we started from? Investment Trusts

We believe this is the first paper to analyse ownership of Investment Company (IC) sectors by type of investor. It has been written in collaboration with Argus Vickers.

ICs were originally created in the 19th century as a vehicle for wealthy private investors and those who wanted to utilise the skills of a specialist in the asset class.

They increasingly fell out of favour in the middle of the 20th century as retail investors flocked to mutual funds, institutions took specialisation in-house and ICs came to be viewed as old-fashioned with weak governance.

ICs are back in fashion, partly following recent difficulties relating to illiquidity and suspension of dealing by some mutual funds.

All ICs offer investors the benefit of pooling risk and diversification for a small investment, whilst “alternatives” can have additional advantages, such as creating liquidity in illiquid assets and providing exposure to asset classes investors wouldn’t otherwise be able to access.

Strangely, these attributes were precisely why investors clubbed together in the 19th century to form investment trusts, as ICs used to be called. In fact, you could say we are Right back where we started from[1].

At the end of 2019, the combined market capitalisation of all ICs was more than £170bn.

Download the report by clicking HERE

 

Featured News

This Week’s Most Read

  • Price of scarcity: Central banks are driving large valuation premiums on assets with limited supply

    By Charles-Henry Monchau, CIO at Syz Bank It is important to understand the concept of scarcity to better understand its mechanics and its impact on markets. Scarcity refers to the

  • Why now is the right time to invest in Japan

    By Masakazu Takeda, lead portfolio manager of the Japan Focus All Cap strategy at SPARX Asset Management The issues that have plagued Japan over the years are now at the doorstep of

  • Why high yield bonds could be the next ESG frontier

    By Lila Fekih & Mark Remington, Co-Portfolio Managers of the New Capital Sustainable World High-Yield Bond Fund at EFG Asset Management  Equities have garnered the most attention in the ESG

  • Fundsmith hints at bumpy ride

    Terry Smith’s annual letter to shareholders reports a slight underperformance of the MSCI World Index over one year Despite the value rally, quality stocks outperformed in 2021 Smith says unexpectedly

  • Brooks Macdonald Funds under Management hit £17.3bn

    Brooks Macdonald today publishes an update on its Funds under Management (“FUM”) for its second quarter ended 31 December 2021, together with a Trading Update for the half year. FUM

  • Ninety One appoints Juliana Hansveden

    Hansveden to develop emerging markets sustainable equity capability Ninety One has today announced the appointment of Juliana Hansveden, CFA, as Portfolio Manager, Emerging Markets Sustainable Equity. In this newly created

  • Man GLG’s Atherton: Governance revolution in Japan like the UK in the 80s and 90s

    The ESG-driven corporate governance revolution in Japan is creating investment opportunities similar to those in the UK in the 1980s and 1990s, says Jeff Atherton, manager of the Man GLG

  • BlackRock launches two new active Climate Action funds

    The BGF Climate Action Multi-Asset Fund and the BGF Climate Action Equity Fund leverage BlackRock’s deep expertise in active sustainable investing with the objective of generating positive environmental impact.  As

  • US December CPI inflation rises 7% from a year ago

    David Goebel, Investment Strategist at Tilney Smith & Williamson, the wealth management and professional services group, comments on the latest US CPI inflation data: US December headline CPI inflation rose

Wealth DFM