Trusts must show flexibility if market begins to turn

Closed-ended companies must set out investment and discount management policies clearly to differentiate themselves in more difficult market conditions

The bull market has been good - particularly for the more adventurous investment companies (see table). Over the last five years, investment companies have outperformed the FTSE All-Share by getting on for 20% - they have been a good investment sector to be in. But suppose the party is now over? If the bull has moments of doubt, whose management style might have the answer for future strategy and how might investment companies begin to demonstrate that style? Those are pertinent questions in 2007 because investment companies, by their flexibility, independence and nature, ought to be pre...