Why I am not finding many value opps in the IT sector

ITs

James Burns, head of multi-manager at Smith & Williamson, looks deeper to find select bright spots for investors.

As an investor in the investment trust sector, I am currently finding it harder to capitalise on obvious value opportunities than at any time in the past few years. There are several possible reasons for this but I would put forward the uncertain economic environment, RDR and consolidation in the wealth management industry over the past couple of years as prime drivers. The ‘natural selection’ process that goes on in the sector will also have contributed (ie poorly performing trusts are either wound up or have their management contracts moved on to better managers). This is typifie...