- Japan is a core region with tailwinds
- UK market may re-rate on dovish news
If the discount-widening is done then investment trusts could offer a double recovery premium on themes that also took a beating in the interest rate hiking cycle. There are risks that haven’t gone away, however.
For our two featured trusts this month, we’ve chosen to look at one focusing on smaller UK companies and the other that concentrates on opportunities in Japan. In both cases, investors need to decide if an investment trust is the best way to play the underlying story. In the case of UK small caps, you might wish to pick stocks yourself and Japan may be best invested in using an exchange traded fund (ETF).
