Rathbone's Coombs buys trusts as volatility pushes discounts wider

Rathbone's multi-manager David Coombs has upped exposure to index trackers and investment trusts as recent volatility moved them to more attractive valuations.

He has added to Asian investment trusts and has boosted exposure to passive vehicles by as much as 16% on the recently-launched Enhanced Growth fund. “In some ways the period of volatility has been helpful. I have been able to buy things I did not think I could,” said Coombs. “Investment trusts in Asia that were previously looking expensive have now come down substantially, and we have been buying them at a discount to net asset value.” Coombs favours investment trust because they tend to be smaller than open-ended funds, allowing more access to small- and mid-cap stocks, and lack l...