LGIM's Penny: Trio of trust launches will boost micro-cap liquidity

The launches of three small-cap investment trusts in close succession will give liquidity in the lower end of the market a much-needed boost, according to L&G's Richard Penny.

Penny (pictured), who runs the £197m L&G UK Alpha trust and the £193m L&G UK Special Situations fund, said it has been tough to find opportunities in the small-cap space over the past year. The manager typically runs a high allocation to smaller companies - his UK Alpha trust is listed in the UK All Companies sector but has 65% in AIM shares. "The fund has focused on micro-cap stocks and AIM stocks, but we have not had the momentum recently, and the valuation gap has widened. It has been very difficult," Penny said.  However, he hopes the recent launch of several investment trusts ...