Wise Funds have always been a big supporter of investment trusts within our own funds. In a recent interview with Fund Calibre, they looked at how multi-asset funds are using investment trusts and we were delighted to be asked to contribute along with other asset managers as it’s an area we believe we offer strong expertise.
In the interview, Vincent Ropers, said the following
“Investment trusts are the cornerstone of our fund, historically representing 60-80% of the portfolio. As multi-asset investors, the main attraction of investment trusts is that they offer a genuine breadth of exposure to non-traditional asset classes such as private equity, infrastructure, renewables, debt or property. This allows us to create a diversified fund of funds which, historically, has kept up with equity returns but with less volatility.
“With a fixed pool of capital rather than having shares created or cancelled based on demand like in a traditional mutual fund, liquidity is also aligned between investment trusts and their underlying assets. This makes it the perfect structure to invest in less liquid parts of the market, not only in alternative assets like the ones highlighted above but also in traditional assets such as smaller equities or longer-term activist strategies. Those present great potential for above average returns but are hard to manage in the traditional mutual fund structure.
“As appealing as they are, however, investment trusts can require specialist skills when it comes to trading, due diligence, corporate actions, discount management, etc…Our aim is to provide that expertise in a fully packaged fund, offering access to this attractive niche part of the market without the hassle for investors.”
If you find this of interest, please get in contact with us to find out more about our funds,
Click below to read the full interview on the FundCalibre website
How multi-asset funds use investment trusts | FundCalibre
Our TB Wise Multi-Asset Growth fund is Elite rating by FundCalibre, who are an independent online research centre and fund ratings agency, which is freely available to all investors.