Trust buyers look to value strategies as 'perfect storm' abates

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Investment trust buyers are looking to switch into unloved value trusts after the rally in their growth-orientated peers left many of these looking overvalued.

The post-crisis recovery has seen growth trusts power ahead, leaving many value vehicles lagged behind. Growth investment trusts have beaten value styles over one, three, and five years, according to data compiled for Investment Week by Morningstar. The average growth trust has returned 125.4% over five years, compared to the value average of 92.2%. While discounts have come in across the investment trust universe as a whole, analysts have said value trusts now offer a “compelling” investment opportunity compared to growth vehicles. In recent weeks, Winterflood and Canaccord Gen...

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