Nick Greenwood: My investment trust diamonds in the rough

ITs

Five years on from the financial crisis, certain areas of the investment trust universe are still viewed with caution. Nick Greenwood, manager of Miton's Worldwide Growth trust, looks at how to exploit the lack of confidence.

Investment companies remain a highly cyclical corner of the stock market, oscillating between states of feast and famine. A lot of the more recent generation of trusts were hardly given the chance to draw breath before they were overwhelmed by the global financial crisis. At that time, the banking industry became uncertain as to whether their trading partners remained solvent and, as a result, effectively placed whatever cash they had under the mattress. One consequence was that wholesalers of stocks and shares could no longer access sufficient capital to ply their trade and many smal...