Bottoming out of smaller caps bodes well for trusts

Professional Adviser
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An apparent bottoming-out among UK small-cap stocks could signal a positive outlook for narrower dis...

An apparent bottoming-out among UK small-cap stocks could signal a positive outlook for narrower discounts in the investment trust sector. Derek Larcombe, manager of the Quilter Global Growth and Quilter Global Income funds of investment trusts, said recent moves in the two sectors appear to echo market shifts last seen in late 1998, just prior to a strong rally in equity markets. 'In autumn 1998, FTSE small caps had a sharp decline as the market capitulated, which was quickly followed by a rise of around 100% over an 18-month period. At the same time, discounts on investment trusts e...

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