The shiniest things come in small packages, as we discovered when we asked professional investors to unveil the sub-£300 million funds worth unwrapping.
by Jennifer Hill from interactive investor 29th November 2021
Over the past couple of years, there have been various examples of big funds continuing to swell in size amid high demand from investors – most notably Fundsmith Equity and Scottish Mortgage Ord SMT.
It can pay to think outside the box, however. Analysts and professional investors, from financial advisers and wealth managers to multi-managers, see value in propositions that have fund managers at the helm with proven track records but for whatever reason have relatively low amounts of assets.
Here, they reveal a dozen – six funds and six investment trusts – with assets below £300 million that could be worth unwrapping.
Miton UK MicroCap Trust Run by the highly experienced smaller companies duo Gervais Williams and Martin Turner, Miton UK Microcap has around 80% of its £106.2 million assets in FTSE AIM stocks…
Mobius Investment Trust An interactive investor Super 60 pick, the £159 million Mobius Investment Trust suits investors with a higher risk tolerance…
Invesco Asia Trust Asian investment trusts have tended to trade at discounts, something that Alex Moore, head of collectives at Rathbones, attributes to their higher risk and relative underperformance to developed market peers…
AVI Japan Opportunity Trust In existence for three years and on wealth manager Ravenscroft’s buy list since then, the £162 million AVI Japan Opportunity Ord offers exposure to the relatively untapped asset class of Japanese smaller companies…
Jupiter Emerging and Frontier Income Trust Jupiter Emerging & Frontier Income, run by Ross Teverson, has the highest yield in the global emerging markets investment trust sector at 4.3%. It is not doing badly in capital growth terms either, having outperformed sector stalwarts such as Templeton Emerging Markets and JPMorgan Emerging Markets Ord over the past year.
Despite that, it has assets of only £65 million. “The launch [May 2017] was reasonably successful for an equity trust at the time. However, sentiment turned against emerging markets a year later,” says James Carthew, head of investment companies at QuotedData. “The board is keen to see it re-expand.”
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