The conclusive result of last month's General Election has buoyed long-suffering UK-focused investment trusts, which have outperformed both fund equivalents and the broader market since early December as sentiment towards UK assets improves.
The IT UK All Companies sector delivered an 8.2% return from the 12 December polling day to 10 January, placing it above all other fund or trust sectors in addition to the FTSE 250, which was up 3.9% over the period, according to FE Fundinfo.
It was followed by the IT UK Smaller Companies, IA UK Smaller Companies and IT UK Equity Income sectors, which averaged returns of 8%, 7.8% and 5.1% each respectively over the period.
The IA UK All Companies and Equity Income sectors were the fifth and sixth best performing over the period, with each delivering gains of 5.1%.
Trusts within the top-performing IT UK All Companies sector are currently sitting on an average discount to NAV of 3.4%, according to the Association of Investment Companies, reflecting ongoing negative investor sentiment towards UK assets.
Similarly, the IT UK Smaller Companies sector has an average discount of 4%.
Since the General Election, the best performing trusts have been JPMorgan Smaller Companies, SVM UK Emerging Fund and Schroder UK Mid Cap, which have returned 15.7%, 14.1% and 13.7% each respectively over the period.
By comparison, the best performing funds were VT Teviot UK Smaller Companies, SVM UK Opportunities and Liontrust UK Micro Cap, which have averaged returns of 11.3%, 11.1% and 10.4% each over the period.
Personal finance analyst at AJ Bell Laura Suter said the returns reflect the fact that sentiment towards UK stocks has "dramatically improved since the December General Election".
She added: "The large majority gained by the Conservatives fuelled a 'Boris Bounce' as investors hurried back into domestically focused companies that had been out of favour for so long.
"This can be seen clearly in the dominance of smaller company funds at the top of the performance tables.
"UK-focused investment trusts had been on stubbornly wide discounts to their net asset value in the lead-up to the election, but benefited from a boost to share prices in the Boris rally as investors bid up UK stocks."