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Alpha Investment Trusts: cheap DM equity

Our investment trust screen flags some interesting developed market equity opportunities
April 11, 2019

This month our portfolio of 10 investment trusts would give an interesting exposure to developed marked equities, with many of the trusts highlighted focussing on UK, US and European listed shares.

  • Polar Capital Trust (PCT) includes exposure to many of the biggest names in global tech, and perhaps investors’ nerves at the valuations of these companies has dragged down the trust’s shares below their long-term discount. Manchester & London (MNL) also has some big tech exposure. 
  • Witan investment trust (WTAN), Brunner (BUT), Secs Trust of Scotland (STS) and BMO UK High Income fund (BHIU) would also give an interesting play on global large cap equity but at different weightings to a passive index fund. They are different enough in their holdings to be worth owning simultaneously
  • More thematic trusts include Standard Life UK Smaller Companies (SLS); TR Property (TRY) – which has a mix of real estate exposure across the UK, Germany, France and Sweden; JP Morgan Mid Cap (JMF); and the US focussed Gabelli Value Plus (GVP) fund.
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