Over the long haul, small-caps have historically outperformed large caps, fuelling the research highlighting the so-called 'small-cap effect' ? the idea that smaller companies offer higher risk-adjusted returns than larger ones. Unfortunately, the higher interest rate environment of recent years has proved tough for the stock market's small fry, who've spent more than a decade lagging more sizeabl

On 1 August the Bank of England's Monetary Policy Committee made a 5-4 decision to kickstart its rate-cutting cycle. A 25 basis point reduction in the base rate to 5% marking The Old Lady of Threadneedle Street's first cut since March 2020.This means cash savings rates are heading in one direction, down. And the lower-than-expected jump in UK inflation reported on 14 August only boosted market exp

Prime minister Rishi Sunak's decision to call an early general election came too late for UK investors to respond, but the 'day after the night before' saw the the FTSE 100 close 30 points or 0.4% lower at 8,339 which is hard to read anything into as far as markets are concerned.A more telling reaction was the bounce in sterling, which continued its month-long advance against the euro as any chanc

Discounts and premiums to NAV (net asset value), which is the value of all the investments an investment trust holds minus any debt or loans, are among the trust universe's unique quirks and can confuse novice investors. At the moment the vast majority of trusts trade at a discount.Annabel Brodie-Smith, the AIC's (Association of Investment Companies) communications director, says: 'Only around 20

The prospect of a new British ISA has put the spotlight on the UK market. Some investors will not feel comfortable picking individual shares and an alternative is to look at actively managed funds and investment trusts. Here are some tips on putting together a UK-focused portfolio. WHICH FUNDS AND TRUSTS WILL QUALIFY FOR INCLUSION IN THE BRITISH ISA? The rules for which investments can qualify for

One of the most popular investment trusts with AJ Bell?s ISA millionaires, City of London (CTY) is a favourite with investors seeking long-term income and capital growth and a gateway to large international companies.However, while the long-run performance record is strong, Curtis? cautious approach means the fund can underperform in some market conditions. On a 10-year share price total return ba

For the second part of our annual survey, we asked fund managers if they had changed their view on any stocks this year, for better or for worse, and what lay behind their decisions.As with the winners and losers survey last week, the answers were often frank and once again we would like to thank everyone who took part.Thomas Moore - Aberdeen Equity Income Trust (AEI)THE STOCK THAT I CHANGED MY MI

There were several trends in the UK stock market this year which, if you managed to identify them, served you well.Most obviously, although it may not have seemed it at the index level, large-cap stocks generally performed better than small- and mid-caps, although for the lucky few the small-cap space has been rife with takeover activity.In terms of sectors, aerospace and defence topped the FTSE 3

Retailer Marks & Spencer (MKS) is the gift that keeps on giving. Its share price is up 162% since October 2022, dividends are back after a four-year absence, and analysts keep finding reasons to upgrade earnings forecasts. In fact, the analyst consensus earnings estimate has increased 11 times this year, according to Stockopedia data.Earnings growth is a key driver for share price growth so it mak

Value stocks have outperformed growth stocks by 12% since Pfizer (PFE:NYSE) announced the first effective Covid-19 vaccine on 9 November 2020. That's comparing the MSCI World Value index against the MSCI World Growth index.We have reason to believe the value investing style could soon deliver even bigger outperformance given the shift in the backdrop from cheap money to more normalised interest ra

During volatile market conditions and high inflation, investors are looking for ways to protect their income. Investment trusts have an income advantage which is particularly important for seekers of rising payouts.This is because they are able to hold back up to 15% of the income they receive from their investments in their revenue reserves. They can use these reserves to boost dividends during l

Finding reliable dividend income in the UK equity market remains tricky despite the resumption of dividends by companies emerging from the pandemic and repairing their balance sheets.In this feature Shares puts the spotlight on some of the best performing UK equity income funds and investment trusts which have also displayed consistency over many years.Topping the trust universe is the Law Debentu

'Form is temporary, class is permanent' runs the old adage often used to describe sportsmen and sportswomen, though the maxim can also be applied in the investment industry, where you'll find a cohort of collectives that consistently do the business for their holders.Funds that routinely outperform over economic and stock market cycles must be pursuing a winning process that should pique the inter

City of London Investment Trust (CTY) has been a popular choice for investors over the years, but a period of underperformance versus the UK Equity Income investment trust sector average on a three and five-year basis is a worry.Typically investing in FTSE 100 companies, City of London has been a hit with certain types of investors, particularly those approaching retirement or already in it. The

The double-digit discount to net asset at Henderson Opportunities Trust (HOT) looks unjustified given its long-term track record.Trading 14.7% below its NAV, the investment trust has delivered a total return of 318.5% over the last 10 years.This puts it near the top of the AIC's UK All Companies category in terms of performance and yet it offers the largest discount.A focus on UK value opportuniti

There are plenty of reasons to be more cautious about the markets despite the flagship US stock indices, the S&P 500, continuing to hit new highs.Investor nervousness is increasing. Just look at how many companies have recently beaten earnings forecasts, but their share prices have fallen as the market worries about near-term pressures or the loss of momentum in parts of their business.Valuations

UK stocks dropped sharply on Friday as the sell-off in bonds continued to rattle investors, not only wiping out the previous week's gains but wiping out the entire month's gains.Overnight the S&P 500 and Nasdaq indices fell by 2.5% and 3.5% respectively, triggering the sharpest sell-off in Asian markets for nine months with Japan's Nikkei 225 dropping 4% and China's SE Composite falling 2%.The sel

UK stocks dropped sharply on Friday as the sell-off in bonds continued to rattle global equity markets.Overnight the S&P 500 and Nasdaq indices fell by 2.5% and 3.5% respectively. That triggered the sharpest sell-off in Asian markets for nine months with Japan's Nikkei 225 dropping 4% and China's SE Composite falling 2%.The sell-off spilled-over into commodities with Brent Crude down 1% to $65 a b

UK stocks dropped on Friday as the sell-off in bonds continued to rattle global equity markets.Asian markets fell by the most in nine months with Japan's Nikkei 225 dropping 4% and China's SE Composite falling 2%. The sell-off spilled-over into commodities with Brent Crude down 1% to $65 a barrel. Gold fell 0.2% to $1,766 an ounce.At 9am the FTSE 100 of leading shares was down 0.4% at 6,626 points

With UK companies suspending dividends left, right and centre, times are tough for income investors.One possible solution is to look to investment trusts. Many are sitting on significant revenue reserves which they can draw on during 'rainy days' to supplement their revenue and maintain dividends during 'Black Swan' events such as the coronavirus shutdown.Most income trusts have accumulated close