WHAT DOES IT DO? Manager Nick Greenwood aims to beat three-month Libor, the interbank lending rate, by 2 per cent over the long term.
He does this by primarily investing in other funds, rather than shares, that are mostly listed on London’s main market and AIM.
WHAT DOES THE MANAGER INVEST IN? Many of the funds Greenwood invests in would be unfamiliar to the amateur investor.
His biggest pick is the £108million India Capital Growth fund, which mostly invests in small and medium-sized Indian firms.
A quarter of the trust is invested in the UK through a number of funds, while another quarter is placed in funds that invest globally. India and Japan feature heavily.
WHAT DO THE EXPERTS SAY? Pascal Dowling, of investment firm Kepler Partners, says: ‘This is a unique fund which allows you to take advantage of the investment trusts that cost less than their assets, while reducing the risk that you’d be exposed to if you tried to do it yourself.’
He said Greenwood had delivered ‘excellent returns for investors’.
WHAT DO THEY LIKE? Dowling added: ‘The trust has delivered annualised returns in excess of 7 per cent over the last ten years, and is well placed for the future now that inexperienced investors are buying investment trust shares.’
AND ARE THERE DOWNSIDES? Returns tend to come in fits and starts, so it’s quite possible to buy this trust and not really see any benefit for a while, says Dowling.