Performance is everything

investment trusts

Investment trusts generally outperformed the FTSE All Share over 2005 helped by narrowing discounts and profitable global exposure, but the duller economic background in 2006 suggests individual stock selection will be more important

Last year marked a turning point in sentiment towards the investment trust sector. Although most shares have been picking up since early 2003, confidence in investment trusts was much slower to recover. Memories of the technology bubble and split-capital trust problems held back many private clients and advisers from returning to the sector. But the year not only saw split-capital problems substantially resolved, but also good investment returns. The investment trust sector averages finally moved above levels last seen in 2001. And, a most remarkable change happened within many investment t...