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10 investment trusts for new recovery themes

Niche plays in Europe and Asia have replaced UK value as our screen's top theme
10 investment trusts for new recovery themes
  • Europe and Vietnam are two themes highlighted this month
  • All nine past "Top 10" IT portfolios are now beating benchmarks

Since November's report, a stand out theme in the  ten-trust selections has been UK-equity recovery plays. Often the 10 trust portfolios have featured the maximum quota of 5 UK funds (the portfolio rules means only five trusts from the same mainstream theme are allowed). There has also been a particular focus on  UK trusts investing in small caps and value stocks. Such trusts have proved among the best ways to profit from the so-called “reflation trade”.

However, as glorious as the returns from UK value and small caps have been, this wonderful run seems to be losing steam. Steam is something the Alpha screening criteria likes. That’s due to its focus on momentum as well as value. So this month we are moving on to pastures new.

Here's the strategy's long term record:

And this is how the 9 reports since launch last July have performed (all are ahead of both the MSCI World and FTSE All Share indices):

20-Jul-2011-Sep-20
NameTotal ReturnNameTotal Return
Alpha ITs42.1%Alpha ITs33.6%
MSCI World19.5%MSCI World17.6%
FTSE All Share20.2%FTSE All Share22.7%
19-Oct-2016-Nov-20
NameTotal ReturnNameTotal Return
Alpha ITs30.4%Alpha ITs21.9%
MSCI World16.9%MSCI World11.7%
FTSE All Share24.5%FTSE All Share13.7%
25-Jan-2122-Feb-21
NameTotal ReturnNameTotal Return
Alpha ITs10.7%Alpha ITs13.6%
MSCI World3.0%MSCI World9.0%
FTSE All Share8.2%FTSE All Share8.8%
29-Mar-2127-Apr-21
NameTotal ReturnNameTotal Return
Alpha ITs10.7%Alpha ITs2.5%
MSCI World5.7%MSCI World1.5%
FTSE All Share6.0%FTSE All Share2.2%
24-May-21  
NameTotal Return  
Alpha ITs4.6%  
MSCI World2.5%  
FTSE All Share0.6%  

 

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