Market volatility produced dramatic reversals of fortune for investment trusts over the last two qua...
Market volatility produced dramatic reversals of fortune for investment trusts over the last two quarters to 31 March. According to Deutsche Bank, the most extreme example of the effect of volatility was on GT Japan. The £218m trust's NAV outperformed the Topix by 32.5% in the final quarter of 1999, but in the following quarter it lagged behind the index by 13.1%. The trust's combined weighting of 16.6% in Hikari Tsushin and Softbank, which both fell in the first quarter of 2000, does much to explain the differential, said Martin Fothergill, an investment trust analyst at Deutsche Bank. G...
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