“Variety’s the very spice of life, that gives it all its flavour.”*
“Excellence represents the wise choice of many alternatives – choice, not chance, determines your destiny.”**
It is highly unlikely that Aristotle was using the term ‘alternatives’ in the way it is now used in investment management, given he wrote this in the mid-350s BC in Greece. However, the principle still applies today in financial markets and that includes the world of investment trusts (ITs).
With the findings for private investors now in for Research in Finance’s (RiF) UK Investment Trust Study (UKITS), there were, as usual, some intriguing findings coming out from the Wave 6 data. A ‘bumper crop’ of 250 IT holders took part in the online survey component of the research, while the qualitative online community was carried out with 10 trust holders, including some who were relatively new to ITs at the time.
Asking those surveyed in which asset classes should more investment trusts be launched, we received a multitude of different replies. What is clear is that IT holders would like to see more trusts launched in the area of responsible investing – including environment, green energy and energy storage. As the word cloud below shows, there is also a wish to see more smaller companies and country/ region-specific trusts, as well as a broader offering of fixed income ITs.
The search for income always high on investors’ wish lists – revealed that equity is the preferred asset class when seeking income. As we can see below, this is even more the case than it was a year ago. Income investors are also more favourable towards property and less so towards fixed income currently.
If you would like to know more about the UK Investment Trust Study and how to subscribe, please contact Toby Finden-Crofts or Richard Ley. Options exist to purchase Wave 6 (fieldwork December 2021 to January 2022) or to become a full member with access to both DFM/Wealth Manager and private investor insights and the online community for Wave 7 by expressing an interest now.
*William Cowper. English poet and hymnwriter. 1731 – 1800.
**Aristotle. Greek philosopher. 384 BC – 322 BC.
‘Word cloud’ shows sectors with 2+ mentions.