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Article: FARROW'S VIEW: Out for the discount.
- Article from:
- Money Marketing
- Article date:
- January 29, 2009
CopyrightCOPYRIGHT 2009 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The investment trust renaissance has been undone by the credit crunch. The sector had been enjoying a post-split-cap revival thanks to their esoteric offerings, including private equity and hedge funds.
But investment trusts, like most shares, have felt the full force of the market turmoil. The FTSE Equity Investment Instruments index was down by 35.4 per cent on a total return basis compared with a fall of 29.9 per cent for the FTSE All Share in 2008, according to the investment trust analysts at Wins Research.
The underperformance should be of little surprise. Investment trusts are often viewed as a bull market product. When markets are strong the ...