- Big global trusts have struggled against passives in recent years, but recent volatility might herald a change
- We look at whether generalists can stay relevant in an age of specialisation
It’s testament to the sheer uncertainty of recent times that not a single UK-based investment trust has launched in the first eight months of 2022. That compares with 16 over the course of 2021 and six in an unpredictable 2020. Some analysts think it might even mark the first such eight-month dry spell since the 1980s. But three prospective trust launches have landed so far in September, with each serving to remind us that the sector is at least offering access to particular investment niches in the absence of real quantity.
Need a dedicated allocation to Chinese private equity in your portfolio? There’s a trust for that. Interested in targeting a 4.5 per cent yield by investing in farmland – or getting inflation protection via exposure to supported housing schemes? Done. The three trusts that have announced an intention to float – Welkin China Private Equity, the Sustainable Farmland Trust and the Independent Living Reit – will serve these admittedly minority pursuits, provided they succeed in their fundraising efforts.