From MoneyWeek · · 1m 40s
Dud investment trusts: what to do
How to fix underperforming investment trusts without losing money
In brief
How to fix underperforming investment trusts without losing money Sell dud trusts with no recovery path; hold those with solid strategies or sector advantages Originally reported by MoneyWeek.
Dud trust dilemma
Investment trusts can underperform for years without recovery. Some are stuck in bad sectors or flawed strategies.
Scottish Mortgage story
Scottish Mortgage dropped from top to bottom but recovered over three years.
European Opportunities collapse
European Opportunities lost its biggest investment, Wirecard, in 2020 and never recovered.
Mid Wynd underperformance
Mid Wynd moved from Artemis to Lazard three years ago and now returns 17% versus 63% for the MSCI World index.
STS Global Income lag
STS Global Income and Growth returned only 16% with a defensive strategy that has been wrong.
AVI Global potential
AVI Global has lagged but could return to the top if its 20% Korea allocation pays off.
Alliance Witan issues
Alliance Witan selected 11 elite managers but has underperformed compared to F&C and Monks.
Scottish American struggles
Scottish American has poor performance despite 52 years of dividend increases and low yield.
Finsbury Growth recovery
Finsbury Growth & Income has poor returns but manager Nick Train has a compelling story.
BlackRock smaller companies
BlackRock Smaller Companies dropped from near the top to near the bottom in five years.
Pacific Assets merger
Pacific Assets is being absorbed by Schroder Asian Total Return but Scottish Oriental has worse performance.
Pershing Square discount
Pershing Square has a 33% discount to net asset value and has recovered in past downturns.
Here's the gist
Sell dud trusts with no recovery path; hold those with solid strategies or sector advantages
