By Jean-Baptiste Andrieux, Reporter, Trustnet, 06 February 2024:
Scottish Mortgage seems to be back on investors’ radars, as they project central banks to start cutting rates at some point this year – boosting the growth-heavy portfolio…
The Baillie Gifford’s flagship investment trust has struggled since central banks started their hiking cycle, but falling interest rates might prove to be the tailwind it needs, as we explained yesterday.
But the volatile trust is by no means a one-size-fits-all proposition and some will want to pair it with others to dampen the risk in a portfolio. Others may well wish to offload it altogether, looking for something steadier. Below, experts give options for both…
Income was a popular theme among the experts, with Emma Bird, head of investment trust research at Winterflood, also choosing a global equity income fund: JPMorgan Global Growth & Income – a trust for which Winterflood is the house broker…
Away from dividends, Matthew Read, senior analyst at QuotedData picked Alliance Trust for investors looking to balance out the Baillie Gifford’s flagship investment trust.
He said: “This is a large – £3.1bn total assets – investment trust that is also focused on global equities but is managed in a very different way. Alliance Trust’s manager, Willis Towers Watson, selects around 10 managers to run concentrated portfolios of their ‘best ideas’…
Conversely, some investors might feel Scottish Mortgage is not aggressive enough and may want a portfolio that goes a step further. For this cohort of investors, Read pointed to another trust from the Baillie Gifford stable: Edinburgh Worldwide, which is sometimes described as Scottish Mortgage’s ‘little brother’.
Read said: “Although it is a fraction of the size of the colossus that is Scottish Mortgage, Edinburgh Worldwide bears some similarity in style, albeit it has a smaller-cap focus (it has a similar approach to its private company investments)…
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