Analysts back bargain smaller companies trusts after sell-off

Investment trust analysts have slapped buy ratings on a number of smaller companies trusts, as recent selling opens up significant discounts in the sector.

Since the beginning of a small- and mid-cap sell-off in March, the FTSE 100 has held steady, returning 1.2%, while the FTSE 250 and Small Cap indices have both lost around 6%. The average smaller companies trust fell 7% in the first half of the year following the correction, according to Numis, with several vehicles moving to the top of the broker’s ‘cheapest trusts list’. Harry Nimmo’s Standard Life UK Smaller Companies trust lost 15% in share price terms in the first half of the year, and is now one of UK’s best value trusts, according to the list. It currently trades on a discount ...