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

The shrinking UK stock market is a worry for fund managers and has wider implications for the UK as a listing venue as well as the UK?s economic growth, say analysts at Peel Hunt.This article explores the so-called de-equitisation of the UK stock market, or plainly put the substitution of debt for equity via share buybacks and cash acquisitions.More than 45 companies exited the UK market in 2023 d

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

Number of high yielding trusts up since February35 equities-focused trusts offer 4% yield or moreBut Stifel says watch out for automatic cutsWhilst UK inflation cooled more than expected last month, June's 7.9% reading remains far higher than the Bank of England's 2% target and prices are still going up, which means investors still need to protect portfolios from the 'cruellest tax' with dividends

- Multi-cap trust underperforms due to small cap bias- Dividend cover restored- Cranswick and Marshalls among new purchasesJanus Henderson-managed Lowland (LWI) underperformed the FTSE All-Share in the year to September 2022 as the multi-cap trust's bias to higher-yielding shares and smaller companies lagged an index with a pronounced large cap bent.On the positive side of the ledger, the annual d

The idea behind value investing is to buy shares for less than they are worth in the hope they reach their so-called 'fair' value and generate a better than market return.This article explores popular yardsticks used to find value shares, explains how they are used and highlights the advantages and drawbacks.Before starting it is worth bearing in mind that none of the metrics discussed are perfect

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

There is no question this year has been an extraordinarily difficult one for many companies, who have had to cope with a sharp rise in both operating and financial costs as energy and labour prices have jumped and interest rates have gone up.It is therefore not such a surprise that FTSE 100 chief executives are leaving in record numbers, with over a dozen either having moved already this year or d

It's time to sell shares in FTSE 100 oil producer Shell (SHEL), according to Henderson Opportunities Trust (HOT) manager James Henderson.The trust will slowly reduce its position and recycle the proceeds into unloved AIM shares.Sentiment has shifted for AIM stocks. Two years ago, a wave of retail money bid them up but now many of these investors have bailed out, and few institutional investors hav

Experience counts in the asset management industry and in a phenomenal achievement, Peter Spiller (pictured) recently celebrated his 40th anniversary at the helm of wealth preservation specialist Capital Gearing Trust (CGT).The mind boggles when you consider that during his four decades as manager, Spiller has seen seven UK prime ministers elected, countless international conflicts rage and inflat

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

After more than a decade of domination for growth stocks, global markets are finally seeing a shift into value.This in turn has benefited funds pursuing a value investing style. Growth performed relatively well through the initial course of the pandemic with technology stocks leading the way, but the key catalyst for the long-awaited rotation into value was 'Pfizer Monday' on 9 November last year.

Surely every investor loves a bargain and in various ways all investors think of themselves as value investors. Sadly, what's been working for investors since the great financial crisis of 2008 is more akin to quality and growth investing. This strategy focuses on the potential growth and quality of a business and less on valuation.Value managers don't shun growth, but they focus more on the price

Since the onset of the Covid-19 pandemic, dividend investors have had a rough old time of it. Quoted company after quoted company has cut or cancelled the shareholder reward.Against this backdrop the investment trust sector has acted as a partial safe haven. Income seekers have long been attracted to investment trusts. Their ability to keep some dividend income aside during good times has helped t

It is always fascinating to get insight into fund managers' views on their stock picking decisions and so we've spoken to range of managers about their best and worst calls in 2019.The managers in this article discuss a range of stocks on both the UK market and ones listed overseas.WILL JAMESDeputy head of European Equities at Aberdeen Standard InvestmentsMEDIOBANCA - GOOD CALL'European banks in a

It is always fascinating to get insight into fund managers' views on their stock picking decisions and so we've spoken to range of managers about their best and worst calls in 2019.The managers in this article discuss a range of stocks on both the UK market and ones listed overseas.WILL JAMESDeputy head of European Equities at Aberdeen Standard InvestmentsMEDIOBANCA - GOOD CALL'European banks in a

What do recovery funds do, what is their appeal and what do they invest in? In simple terms a recovery stock is a share which has fallen in price but is seen as having the potential of climbing back or even exceeding its previous level.This recovery would usually be achieved through a change of strategy or perhaps efforts to repair a broken balance sheet and would often be accompanied or preceded