INVESTMENT STRATEGY
FLEXIBLE INVESTMENT
Expertly
navigating the UK
Investment trusts from Schroders
For UK investors, home shores can form the bedrock of
an investment portfolio.
RIT Capital Partners had traded
on a high premium to net asset
value for some time, but it got hit
in 2009 and fell to an 8 per cent
discount, which is when Dampier
bought it. It now trades on a 6.3
per cent premium, which he says
new investors need to be aware of,
and again is something that won’t
become clear if you only look at
the performance figures.
“You can compare open- and
closed-ended funds to a point, but
you need to recognise the discount
issues, the asset allocation calls
and the views of the underlying
managers as they are all just
as important as the previous
performance numbers,” he said.
Launched in 2000 as a rollover vehicle for exJupiter employees, the £81m New Star IT largely
houses the fortunes of John Duffield, who founded
New Star and Brompton Asset Management. The
trust, managed by Brompton’s chief investment
officer Gill Larkin, sits on a discount to NAV of
36 per cent. It tops the rankings of the new AIC
Flexible Investment sector over one and three years,
returning 43.36 per cent and 61.42 per cent versus
the sector mean of 8.26 per cent and 20.99 per cent.
RIT Capital Partners is a self-managed investment
trust, run by Ron Tabbouche and chaired by Lord
Rothschild. It comes recommended by Dampier,
who holds it in his SIPP, as well as Winterflood.
20
There are three trusts in the Schroders UK range:
Schroder UK Mid Cap Fund plc, investing in
medium-sized companies; Schroder Income Growth
Fund plc, aiming to provide both income and growth,
and Schroder UK Growth Fund plc, which seeks to
capitalise on the growth potential of UK companies.
As with any investment, investment trusts carry risk. The
value of an investment trust will rise and fall in value, and
you may not get back what you put in. As these trusts
concentrate on only the UK, they can carry more risks
than those trusts that are spread across a number
of regions.
Elliott adds that the funds in
the new AIC sector are good
long-term savings vehicles for
retail investors who are wary of
the volatility the stock market
provides.
THE TOP PERFORMER
NEW STAR IT
THE CRITICS’ CHOICE
RIT CAPITAL PARTNERS
That’s why you’ll find some of our most senior
investment talent at the helm of our longstanding UK
investment trusts. Our managers bring an average of 26
years’ industry experience to managing the trusts. So if
skilled hands are important on your investment voyage,
make Schroders your first port of call.
WHILE RIT AND THE
PERSONAL ASSETS
TRUST SIT IN THE
SAME SECTOR, THEY
ARE COMPLETELY
DIFFERENT IN THEIR
MAKE-UP
Simon Elliott at Winterflood says it has developed an
impressive long-term track record by investing across
a range of asset classes. “It offers many of the attributes
of a family office under the influence of its founder
and largest shareholder, Lord Rothschild,” he said.
Whether your focus is growth, income or a combination,
our deep knowledge of the UK can help you chart the
right course. Talk to your financial adviser or visit
schroders.co.uk/its
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