Neil Woodford's £977m Woodford Patient Capital trust has re-entered the FTSE 250, after being booted out earlier this year, while the recently launched Smithson Investment Trust has jumped straight into the index following the latest rebalance.
In the latest FTSE UK Index Series Quarterly Review, which was based on closing share prices on Tuesday 4 December, the index provider announced six new additions to the FTSE 250.
This included two closed-ended investment companies: Woodford Patient Capital and Smithson Investment Trust.
Neil Woodford's £977m trust was ejected from the index in June after an extended period of poor performance, largely based on exposure to smaller healthcare stocks. However, the trust has grown in AUM by some £100m since then and performance has been picking up.
Over the last six months to 5 December, the trust has returned 19.4%, well ahead of its AIC UK All Companies sector average loss of 10%, according to FE.
Commenting on the promotion, Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Recent robust performances from some of the small companies in the Woodford Patient Capital portfolio has boosted overall performance and got the trust heading back towards its launch price.
"While very recent performance is clearly encouraging, it is important to remember the nature of the early-stage businesses that this trust invests in means performance can be expected to be volatile and lumpy, so this is a fund for adventurous and patient long term investors, as the name suggests."
Meanwhile, the Smithson Investment Trust, which launched in October this year as the largest ever UK investment trust IPO on record, raising £822m (and ironically taking the top spot from Woodford Patient Capital), also joined as one of the FTSE 250's constituents.
The trust, which now has £860m assets under management according to FE, garnered lots of attention pre-IPO due to its strong long-term performance from manager Fundsmith's open-ended £17bn Equity fund, which is run by Terry Smith.
Peter Walls, trust buyer and manager of the £86m Unicorn Mastertrust, told Investment Week last month: "It is a logical and pragmatic extension of the large-cap process employed by the open-ended Fundsmith Equity fund, but the closed-end structure of an investment company will facilitate better liquidity and portfolio management."
FTSE Russell said the rules-driven, impartial quarterly reviews ensure the indexes continue to portray an accurate reflection of the market they represent, and form an essential component to the management of the indexes. The changes will be made effective from 21 December.
|Entering FTSE 250 index|
|Aston Martin Lagonda Global Holdings|
|Funding Circle Holdings|
|McCarthy & Stone|
|Smithson Investment Trust|
|Woodford Patient Capital|
Source: FTSE Russell
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