The annual review of the FTSE indices has seen a number of investment trusts shifted into and out of...
The annual review of the FTSE indices has seen a number of investment trusts shifted into and out of the FTSE 250.
The changes, which come into force on 23 December, include the promotion of Second Alliance and Candover into the FTSE 250 and Tribune Trust into the Small Cap index.
All three of the trusts were excluded from the FTSE indices last year for liquidity reasons but have met the criteria this year, according to Charles Cade of Winterflood Securities.
These changes were anticipated by the market, Cade said, but moving into or out of an index can have a significant impact on a trust's discount due to the activity of index trackers.
He added: 'Perhaps more surprising is that some of the investment trusts that were very close to being relegated from the FTSE Small Cap have survived, some by the skin of their teeth. These include 3i European Technology, Private Equity Investor, Henderson Strata, Amerindo and Finsbury Technology.'
Trusts promoted to the small cap index from the Fledgling Index were Scottish American, Tribune, Dresdner RCM Endowment 2003, City Merchants High Yield, Invesco Perpetual UK Smaller Companies and Henderson Eurotrust.
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