The misfit trusts that sit outside sectors

In praise of the 'outsiders'

Filtering trusts by sector helps see the wood for the trees, which can be helpful given the great challenge we face as investors seek one tree among 26,000, writes William Heathcoat Amory, head of research at Kepler Trust Intelligence.

But it also means many investors routinely overlook great funds just because they sit in the 'wrong sector'. The only way to really work out where these trusts are is hard graft - real analysis at a fund level.  The good news is that, for investors who have the time to search for them, trusts that do not sit easily in any one sector often trade on a wider discount than might otherwise be the case, presenting an opportunity.  Trust vs sector  In our view, investment trusts are more open to idiosyncrasies, and therefore more open to being overlooked - often for a very long time. Th...