By Patrick Sanders, Reporter, Trustnet, 15 August 2025:
Investors should consider pairing their global equity trackers with private equity, renewables, global small caps or fixed income strategies, according to Matthew Read, senior analyst at QuotedData.
Despite a heightened volatility in global markets this year, trackers have remained some of the most popular funds among investors, according to recent Trustnet data. However, they expose investors to concentration risk, said Read, as the indices they follow are dominated by tech and US businesses.
To avoid putting all their eggs in one basket, investors should embrace other asset classes that are driven by different factors. So below, Read identified some examples of trusts that could make effective complements to an existing global equity tracker allocation.
Private equity
Firstly, he pointed to Patria Private Equity as a great trust to start with on an “unjustifiable discount”, Read said..
Renewables
Next, Read pointed to Bluefield Solar Income as a “best-in-class renewable vehicle on a daft discount that could even serve as an investor’s core holding”..
Global small caps
Read continued: “The other big thing that is missing with your global equity tracker is small-cap exposure.” In this space, he identified Herald Investment Trust as a favourite..
Fixed Income
Finally, fixed income should serve as “a great way” to broaden the types of assets in a portfolio. The analyst pointed to Invesco Bond Income Plus as one of his “go-to options”..
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